4 April 2014 0 Comments

Real Life Stories

shutterstock_150360542Putting off the decision to buy life insurance is so easy to do.  What are the chances that you will die early?  There’s always more time…or is there?  In my next few entries I’ll outline some real life cases that, hopefully, might cause you to put life insurance at the top of your “to-do” list, where it belongs.

Karen

Karen was a 38 year-old office manager.  She and her husband were divorced, leaving her with a mortgage and sole responsibility for the care of her 14 year-old son, Steven.  She was aware of her financial vulnerability and decided to consult a financial advisor.  The advisor talked her through various options and devised a plan to financially protect her and Steven.  One of the features of the plan was a $500,000 life insurance policy.

Less than two years later, Karen went home from work early one afternoon with a bad headache thinking that she might be getting the flu.  Later that day she lost consciousness and was rushed to the hospital.  She had suffered a brain hemorrhage.  That evening she died without having regained consciousness.

Steven was the beneficiary of the policy and received the proceeds through a trust that had been set up for his benefit.  Steven, who had always been a good student, was able to continue with his higher education.


Martin

Martin was a very successful business executive who recently left the company where he had worked for many years to begin a start-up company.  All of his life insurance to that time had been provided by his employer, but that was now gone.  His wife of many years had recently died and he had two grown children from that marriage.  After her death he remarried and now, at the age of 60, he had a 5 year old son from this marriage.

Martin was pouring most of his savings into his new business venture and realized that his wife and their young son were very vulnerable financially.   He visited with a life insurance agent who showed him the difference in premium between term insurance and Universal Life.  Martin wanted to keep current costs down so he selected 10 year term.  However, since he qualified for Preferred Class premiums, the agent convinced him to purchase 15 year term.  In 14 years he died unexpectedly of a heart attack.  $4,000,000 was paid into his living trust for the benefit of his wife and their young son, plus a portion went to his adult children from his first marriage…a legacy that was important to him.

Life Insurance is for the Living.

Coming up…more real life stories.

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