At IRONSHIELD, it is important for us to help you make the best decisions possible when it comes to your everyday finances. Life insurance is a tool that can greatly improve your life and provide your family with financial stability. In today’s blog post, I want to show you some examples of how a proper insurance policy can be an excellent security tool in the event of a terminal illness diagnosis or the death of the insured. For five individuals, life insurance significantly changed their lives forever. Be inspired by their stories below and discover how life insurance can make an impact on you and your loved ones.
Victoria’s Story
Nancy was a widow whose husband had died at a young age. His small insurance policy was not enough to support his wife and their two daughters, so Nancy decided that she wanted to purchase additional comprehensive insurance in case anything were to happen to her. Sometime later, Nancy was diagnosed with cancer and was able to use the terminal illness portion of her insurance, which allowed her to receive 75% of the policy’s face value. Nancy used this money to finance a home for her daughters, purchase a car for her parents, pre-pay her funeral arrangements, and pay for expenses such as clothing. In addition, she saved some of it for her daughters’ college tuitions. Described by her insurance agent and friend, Victoria, as “an advocate for life insurance,” Nancy loved her family enough to take action while she was still alive to protect them. Her greatest wish was to help her daughters live comfortably and have the lifestyle she would have given them, and with the money from the life insurance policy, her wish was granted.
Irene’s Story
Irene’s client, Susan, had stayed at home with her children and did not have life insurance since her husband, Mark, was the family’s main source of income. Irene initially set up an insurance policy only for Mark because the couple didn’t feel that Susan needed any protection if she was a stay-at-home mom. However, Irene convinced them to buy insurance for Susan, citing the argument that Mark could not just give up his job to stay at home and care for his family if something were to happen to his wife. Susan passed away in a speeding accident some time after they purchased life insurance; Mark also suffered injuries, lost his income due to a disability, and needed to stay home with the kids. Irene said, “the life insurance continued to provide the opportunity to keep a roof over their kids’ heads.” With that money, their daughter was able to attend college and accomplish her goals. While he still misses his wife dearly, Mark said, “to buy an insurance policy is the best thing I did in my life.”
Mike’s Story
Mike’s client, Anne, and her husband wanted a big family and adopted five children within a few years. As their family continued to grow, Mike suggested that they needed more “life insurance for protection,” since Anne wanted her family “to be taken care of.” The family then purchased term for both Anne and her husband; more for him, since he was the one bringing home the money, but also enough for her because she was a stay-at-home mom who took care of the children and the household. When Anne passed away suddenly, her husband and their kids were able to adjust and live comfortably with the extra money, which can actually help you find the strength to get through the grieving process. Mike offers this advice to his clients: “Do not forget about the stay-at-home mom.” It is vital to consider how valuable her contributions are to the family.
Larry’s Story
Larry’s client, Dan, was the president and manager of a small company. Larry discussed insurance programs with him that would help fund a buy-sell agreement between Dan and his business partners, as a means of protecting their company’s name and employees. They decided to buy “key person insurance,” which is essentially life insurance for the key persons in the company – usually the owner, founders or employees that are crucial to the business. In the event of a death or departure of a key person, the money comes straight into the company and is used to find a replacement for the empty position. When Dan passed away in a plane accident, the infusion of capital from the life insurance policy enabled the company to find a replacement for him and maintain the efficiency of their business. Dan’s former business partner and the current president and CFO of the company advises that all business owners should be responsible for their employees, and to “make sure there is some succession planning,” as well as insurance for key persons, in order to protect their company’s legacy.
Helen’s Story
Helen’s client, Alice, worked at a country club that offered its employees a comprehensive medical plan and a small insurance policy. The club believed that all employees should have the option of purchasing additional life insurance. Alice made the decision to buy life insurance not only for herself, but more because her husband was going through an organ transplant. Helen suggests that, often, people don’t realize the need for insurance until they are going through a real-life situation. In this case, Alice also wanted to make sure that their young son would be taken care of in the future. When Alice passed away unexpectedly, their family lost her income and had outstanding medical bills from the transplant. The money from the life insurance policy that Alice had initially bought greatly assisted her husband and son in their time of need. Alice’s husband calls the insurance money “a gift that [Alice] left me.”
* Some names and identifying details have been changed to protect the privacy of individuals.
Related Links
The IRONSHIELD Insurance Plan
https://www.ironshield.ca/services/insurance-plan/
Long-Term Care Insurance 101—Part 1
https://www.ironshield.ca/articles/long-term-care-insurance-101-part-1-the-basics/
Long-Term Care Insurance 101—Part 2
https://www.ironshield.ca/articles/long-term-care-insurance-101-part-2-the-dos-and-donts/
