Why Life Insurance Matters Most When Times Are Tough - Milestone Wealth Management - Ryan Cravitz

Why Life Insurance Matters Most When Times Are Tough

When times get tough, responsible families reevaluate their budgets and trim the fat. But what I often see is that desperate families may view life insurance premiums as unnecessary expenses – at least until matters improve.

I understand this thinking. I really do. Your family isn’t receiving the benefits now, so why pay the premiums?

Sadly, it’s in these moments of desperation that families are their most vulnerable. It’s in these moments that life insurance is absolutely necessary.

I would like you to consider the story from a colleague, Mike, out of Burlington, North Carolina…

Mike had a client named Jenna who was in her early twenties. Because of a tough local economy and a lack of marketable skills, Jenna was forced to move back home with her mother. To complicate matters, Jenna was also a single mother of a young daughter.

When Mike first met with Jenna, a review of her finances alarmed him. He asked, “If something should happen to you, who would care for your child?”

Mike laid out her options and they found a policy she could afford. As fate would sometimes have it, less than a week later, Jenna was killed in an automobile accident.

When George tells this heartbreaking story, he always remembers the look of gratitude on Jenna’s mother’s face, the relief she felt in knowing she now possessed the means to provide for her granddaughter. Had Jenna not been proactive, the mother could not have possibly cared for the toddler.

Now, I would like to tell you that every tragedy comes with a silver lining. I would love to tell you that every client like Jenna came through in the end, securing their loved ones’ futures but it doesn’t always go that way.

Money cannot replace Jenna. Her daughter will grow up having little memory of her, if any. However, without that life insurance policy, matters could have been so much worse.

In my research, here’s what commonly happens in these situations when life insurance premiums were cut to make ends meet…

Surviving children often go unprotected. Many times they become wards of the state, living in group homes or foster care or thrown into the world at age 18 with little or no support. It’s depressing to imagine.

Yet it’s realities like these that motivate me to educate my clients on the importance of life insurance. If times are tough for your family, let’s talk. Even if times are good now consider the financial position you and your family would be in if you or a spouse was no longer around to earn an income. Let’s look at our options.

Do not leave your family vulnerable.

It’s like George says: after 24 years in the industry, he never believed more in the importance of a good life insurance policy than he did the moment he learned of Jenna’s death.