Why I bought life insurance…

I love my family. We have a lot of life changes going on right now. My oldest daughter is getting married, another daughter is applying for college, my oldest son is about ready to get his drivers license, and we have another son starting high school, and our youngest is starting middle school.

My wife Christine left her employer to help me start our business. So between jobs and personal life, we have a pretty hectic load to bear.

My wife and I have the common value that family is the most important thing in life. Our kids… all five of them… are amazing and we absolutely treasure them.That’s why I bought life insurance on myself. And that’s why my wife bought life insurance on herself.

Because we want our children to go to college. We’d love to be able to help them with a down payment for their first home, if possible.

Because we want our children to be able to stay in the same home they grew up in. And without life insurance- if one of us passed away, the other would have to sell the house and move the family (we have a sizable mortgage).

Ask someone who has lost a parent at a young age that has had life insurance and they will tell you that without that life insurance, their would have been much, much harder.

Before I started this business, I had a nice life insurance policy though my employer. So did my wife. But when we both left our jobs to pursue starting our own business, we lost the life insurance policies that our previous employers offered. We had to go out and purchase life insurance policies on our own.

And lucky for my wife that she bought hers when she did- because she developed some major health conditions about one year later which would have made purchasing life insurance very, very difficult. She is only 38- so she was otherwise young and healthy- so it kind of goes to show you that things can happen in an instant.

Just think, if we had started our business just one year later- she would have given up her life insurance policy from her corporate job and then would have been declined life insurance due to her serious medical condition. She would be walking around now- feeling insecure, knowing that if/when she passes away – that we will be struggling financially from her loss.

Struggling emotionally from someone’s loss is kind of a given. But struggling financially doesn’t have to be.

And if you’ve read this far into an insurance blog- you may be thinking, “I have life insurance through my employer” and therefore are set. And that is great! It’s nice to have something in place. But is it enough and will you be with your employer until you pass away?

Some things to consider

Here are some of the things to consider to determine if you haveenoughlife insurance.

  1. The remainder of your mortgage (which is possibly a couple hundred thousand dollars)
  2. Your student loan and credit card debt
  3. Replacing your income for a few years (suggested is 5 years)
  4. Providing funding for your children to go to college
  5. Providing funding for grief counseling
  6. Providing funding for your children to go to college
  7. Providing funding for your funeral/memorial service/burial
  8. Providing funding for any childcare needs (younger children)

It’s easy to see that these expenses can quickly add up to several hundred thousand dollars.

Most employer paid life insurance plans do not provide enough benefits to cover all of that. Not even close! You are usually lucky to get one or two times your salary! And most employer plans end when your employment ends (like ours did). If you are able to convert it, it is a very expensive process.

Just think, if you were to lose your job today… would money be tight for your family? Now, what about if you passed away?

When I die, I don’t want my family to have the added stress of having to move or worry about where the next dollar is coming from.

I bought life insurance on myself because of them. And because of how much I love them.




TRG Communications Team

This account is for posts from The Richards Group Communications Team.


Enjoy this blog? Please spread the word :)

Follow by Email