Insurance Pitfalls (Part 2)

 

life_insurance

 

Continued from yesterday…

 

Two weeks to the day of cancelling his policy, he felt a lump in his neck…….cancer.  He began undergoing extensive radiation and chemotherapy, with a very dismal prognosis.  He also became ineligible for any type of life insurance.  He and his wife were looking at a future well beyond their worst nightmares.  Their children will lose their father; this woman will lose her husband.  As devastating as this is in and of itself, there is no money to handle this type of situation.  I know many people who may not believe in life insurance, will say the wife can just sell their house and get a job.  Really?  Just sell your house?  Really, just get a job?  What happens in the meantime?  What if the house doesn’t sell and during this time you have to use equity?  What if you cannot get an equity line due to the decrease in your home value?  What if you have an equity line, but your lender has frozen it due to the market?  Really, she can just get a job?  She hasn’t worked outside of the home in 5 + years!  Where can she just get a job that will pay enough to pay the mortgage on the home that won’t sell? 

 

Let me tell you what actually happened to this family.  Sadly, the husband did indeed die.  The family did have some savings, but not enough to go past a couple of months, about the same time some of the medical bills started to roll in.  The wife did start to look for a job, but the reality is, with a full time job comes the issue of child care expenses.  The type of jobs she was qualified for, would not earn her enough to pay for childcare.  She was able to sell the house, along with so many wonderful memories, and of course at a loss.  She had to move back to her parent’s home, in another state, so they could help her get back on her feet.  You can imagine, this just added to an already traumatic situation for her little ones.  This was all over $45 a month…..

 

This woman has now become an advocate for Life insurance.  She wrote an incredibly moving and poignant letter to their agent thanking him for trying so hard to convince her husband not to cancel his policy.  I can tell you, this agent (my good friend) feels maybe he could have tried one more time to change his client’s mind; he also, will never get over this.  I forgot to mention, the wife did not know her husband had cancelled the policy until she called her agent to advise him of her husband’s death.  So what am I saying to you?

 

Yes, we may all have to cut back in some area of our lives to compensate for a salary reduction, or a lay-off, or unforeseen car repairs that have to take priority right now, but don’t make a decision regarding your life, a decision that will impact your family forever.  Remember, you will be dead, so you may not see the aftermath and destruction of your decision, but those that live, will deal with it forever.  Talk to your agent, there are always options.  This man could have reduced his coverage temporarily.  He could have increased the deductibles on his cars and home temporarily to off-set that $45.00.  Your families needs do not change when you are no longer in the equation, they just become greater because you are no longer there………

 

Comments

  1. Wow- that is one powerful, moving story, Jennifer. I sure appreciate you sharing it and thank you for your contributions here!
    We all have painful lessons to learn in this new economy!
    Personally, we have made lots of changes, but insurance will remain a priority in our budget!

  2. Thank you Lesley, glad you enjoyed it.

  3. I agree with Lesley; insurance is a great lifesaver unexpected and unfortunate situations. Despite the conditions of the economy, people should never look at insurance as unnecessary.

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