UNDERSTANDING THE VALUE OF LIFE INSURANCE
When I was just 16, my father tragically died following a brief illness. My parents had not procured life insurance, leaving us reliant on the aid provided by the Department of Veterans Affairs due to my father’s status as a disabled veteran. Our assistance totalled around $2,000. However, the cost of my father’s funeral was at least twice that amount. My mother, burdened with grief, debt, and uncertain prospects, was left pondering how she would cover the funeral expenses. She had doubts about being able to support my sister and me. She openly voiced her concerns that we might lose our home. With my sister away at college and my own college futures taking shaky steps, the situation looked dire.
My mother was already fully employed, but she found herself compelled to accept an extra job to make ends meet – a job that demanded her attention continually. She eventually found it prudent to rent out our house and moved in with family to reduce expenses. Nevertheless, she began to discretely augment her life insurance policy. Following my mother’s death seven years after my father’s, my sister and I acquired adequate funds to cover the funeral, take charge of outstanding payments, and even save a bit. I managed to use my portion as a down payment on a house shortly after college, while my sister funnelled hers into retirement funds. My parents’ contrasting life paths served as practical lessons on the significance of life insurance.
UNDERPINNING THE WISDOM OF LIFE INSURANCE
A recent survey by State Farm revealed that a substantial majority of Americans (84%) recognize the wisdom of life insurance as a provision for their family’s future. However, meaningful conversations on this subject are notably lacking. About 42% of survey participants with living parents confessed to avoiding discussions about estate planning. This indeed contrasts starkly!
Recognizing the relevance of life insurance isn’t difficult. If you’re the primary breadwinner, you’ve probably contemplated the aftermath of your sudden absence. You might have even speculated how a debilitating illness (and the accompanying medical bills) would impact your family. Maybe your family resembles mine: where both parents worked and their joint income was necessary for daily expenses.
TIME TO INITIATE THE DIALOGUE
Despite acknowledging the significance of life insurance, some of us, like my husband, find it a dreary discussion topic. Yet, the same State Farm study indicates that people generally have a positive outlook towards life insurance following its purchase. They feel more “protected” (36%), “confident” (22%), and even “relieved” (21%). If you’ve not yet broached the topic of life insurance with your loved ones, now is the perfect moment.
BE PROACTIVE
Your journey can begin right here with a basic needs assessment. Arrange a discussion with your spouse or your parents (or perhaps both). Make sure to address everyone’s concerns, while aiming to finalize a timeline for buying a policy.
Disclosure: State Farm sponsored this blog post to raise awareness about the importance of life insurance. The views expressed here are wholly my own and were uninfluenced and undirected by State Farm. More details about this blogger program and life insurance can be found at GoodNeighbors.com, PlantingMoneySeeds.com, and by following the hashtag #StartLiving on Twitter.
