I Wish You’d Had Life Insurance …

We all have stories of life insurance (or lack of it) effects us when a loved one dies. For a colleague of mine, it was about five years ago, living out West with her husband and teenage son. One day, they received a call that their son had died in a car accident – he’d fallen asleep at the wheel.

Her husband (the son’s step-father), had to work the day of the funeral in order to scrape together the money to pay for the funeral.

I can’t imagine that. They couldn’t afford to grieve.

Six months later, tragedy struck my friend’s family again. Her husband died unexpectedly, again with no life insurance. With no way to cover the funeral or the mortgage any longer, she lost the house.

That’s right, within a year, she lost her son, her husband, and her house. She had no way to survive, so she had to move across the country and move in with relatives in North Carolina. It took her 3 years to get back on her feet.

My personal story is about what could happen to my family if something happens to me.

My first career was a s a biomedical scientist, but from about 2010 to 2015, I was living in an area where there weren’t jobs in my field, and I was broke. I had a wife and two young children who depended on me, and I was broke. The strain ruined my marriage, and I had to move to earn money to support my children.

I saw what financial problems did to my family, and the people that I loved. It broke my heart. I’m doing better now, but not so much better that I don’t worry about what could happen to them if I wasn’t supporting them financially. It kept me up at night.

Life Insurance (and Health Insurance) helps me sleep better at night.

I spend close to 10% of my income on life and health insurance because I want to sleep better at night. I want to know that:

  1. if I die, the money will still be there to allow my daughters to attend college.
  2. if I have a heart attack or cancer, I’ll have my medical expenses covered and money to continue supporting my daughters.
  3. I can affordably go to the doctor to make sure that (1) and (2) don’t happen.
  4. and I gain cash value with these plans that allows me to retire one day. I don’t want to have to work until the day I die.

I have three plans to help me do that:

First, I have a fixed indemnity plan as health insurance on myself, as an affordable way to see the doctor if something happens to me.

Second, I have guaranteed universal life plan on myself, with critical and chronic illness benefits, so that if I die, get cancer or can’t work any longer due to illness, I’ll have money to replace my income and (if necessary) bury me with.

And third, I have an IUL that grows interest on the cash value of my life insurance, so I can retire one day.

I have all of this, because I want to sleep better knowing my loved ones will be okay.

Dan @ Rhoads Insurance Group

The only certainties in life are Death and Taxes. How life’s certainties hit you and your family depends on whether you have done any planning ahead or not.

As a life and health insurance agent, I’ve heard so many stories of people who had plan for when they:

  • either died and left their families with no money for a funeral, a pile of credit card debt, and a mortgage,
  • or were diagnosed with a sickness that could only be treated with extremely expensive medicine or surgery,
  • or had an injury that left them out of work and reliant on only about $600 a month from SSDI.

All that these people had to do was to sit down with their families and do a little planning, speaking with an agent and an estate lawyer. [Funeral Planning Checklist]

Planning Ahead

Reasons that people give for not planning ahead vary. It costs too much; they make too little; they don’t have time – and many other excuses. But that’s really what it is, an excuse.

I speak though from my experience. I’ve been out of work, down to zero income or close to it, and choosing between planning on one hand and paying immediate life necessities on the other. I didn’t have a plan when life hit me hard. I had to adjust, rebuild, and find ways to overcome my challenges.

There are countless stories of people who had massive challenges to overcome and, rather than accepting a wretched life that would someday be crushed by life and taxes, they chose planning ahead and hard work. People like Eric Thomas. Or people like me – I was a jobless father whose first career was in ashes, and my children depended upon me for financial support. Now I’m on the road back and working to help other people build their lives.

Anyone with a will and a pair of hands can step up and find ways to be a little bit more profitable. Even if it’s for only an hour or two a week to start. Step up and do what you can, with what you have, when you can. You’ll find that you’re making more than you did before, and soon you’ll be making more than you are now.

And every step along the way, you can be planning ahead to keep you from sliding too far backwards, when your health gives you a setback.