How Can Life Insurance Be Your Family's Safety Net During Tough Times?
Most times when we talk about life insurance, we’re reminded of all the negative emotions from the loss of a loved one. With this post, I want to share a story of how a life insurance policy became the security blanket for a teacher with a cancer diagnosis.
I want to introduce you to Cynthia. Cynthia is married and also has two children. Cynthia is a teacher, while her husband is a security guard. Their family has a cozy home that they are proud of, and are actively trying to pay it off. Understanding that life can bring many uncertainties, Cynthia took out a life insurance policy on herself to protect her family. One day, during a routine doctor check up, Cynthia was diagnosed with cancer. She was only 32 years old, yet she had developed a little growth on top of her kidney. Luckily, the cancer hadn’t spread yet, but to remove it Cynthia had to take out one of her kidneys.
Although this story has a happy ending, the in-between was not as rosy. When Cynthia found out she had cancer, her whole world shook. In order for her to undergo treatment, she would have to take time off work. At the time, she had to take off two months for the treatment. This was very painful for her and her family, since they relied on both her and her husbands income. In order to keep the lights on, Cynthia’s husband had to pick up extra shifts. It was the only way. Cynthia remembers breaking down in tears, during the time, worrying if everything they had worked for would just disappear. It was a very difficult emotional and financial time in her life. Most families are just one medical bill away from financial ruin and bankruptcy.
At the time, Cynthia had forgotten about the benefits of her life insurance policy. We reached out to Cynthia for an annual review and went over her policy. When she told me what had recently happened in her life, I reminded her that if she were to get a critical illness, like cancer, she can claim part of her life insurance benefit as a direct payout to herself. Cynthia was taken aback. She remembered something about that when we initially talked about the policy, but she had completely forgotten. She became ecstatic when we submitted the information to the insurance company for review. Cynthia claimed the full benefit available to her, and used that money to pay for the debt she had accumulated from her treatment and missing time from work. This event was so impactful to her, that she forced her husband to meet with us the next day, and open up a policy on him as well.
In conclusion, your family’s future can be altered with just one diagnosis or accident waiting to happen. Planning for the worst, is the responsible thing to do. It means your family won’t need to undergo drastic lifestyle changes where their whole world is crumbling from the sickness or loss of a parent, and dealing with financial burdens at the same time.
