It’s widely understood that life insurance is an important asset to have at one’s disposal, whether it’s for protection against the uncertain or planning for the future. According to LIMRA’s 2017 Insurance Barometer study, consumer preferences and expectations for buying life insurance are changing. There is still a general information gap in understanding the cost of life insurance, especially when marital status is considered. Dependents remain a primary reason for consumers to purchase insurance, but a disconnect remains. Only 60 percent of survey respondents say that a single adult with one or more children should consider coverage. However, when it comes to married individuals, 80 percent of respondents indicate a need for coverage.
Reasons why people forego a commitment to long-term planning and security through life insurance are numerous. LIMRA found that most tend to dramatically overestimate the true cost of a policy, while others assume the process is too confusing or time-consuming to bother. At the heart of these beliefs, though, is a general unfamiliarity with the tangible benefits of the right life insurance plan.
To give consumers real, relatable examples of how life insurance has helped countless families over the years, insurance advocacy nonprofit Life Happens sent out a call for life insurance plan members to share their stories. These examples put a face to the name of a financial tool that can prove invaluable in times of great need.
When disability coverage pays off
Among the stories shared by Life Happens was that of Travis Guthman, a business owner in the small town of Lacon, Illinois. Travis and his wife Wendy had been working with their insurance advisor Tom Bader for years, and had come to trust Bader’s insight into the ins-and-outs of their basic life insurance plan. Running a business is no easy task for anyone, but with personal financial management added into the laundry list of chores, the Guthmans appreciated their advisor’s helping hand.
“Families don’t need to worry with the right life insurance plan.”
That’s why when Bader suggested the couple consider adding disability coverage onto their insurance portfolio, the Guthmans took him at his word. Just two years later, Travis was involved in a serious automobile accident, causing life-threatening injuries that required a multi-week stint in an intensive care unit. As the owner of a restaurant, Travis feared that his business, and thus his family’s financial stability, would be in jeopardy.
With the supplemental disability insurance in effect, though, Travis’s income was replaced and their restaurant stayed in business. The Guthmans also were able to stay current on Travis’s cumbersome medical bills. In the end, a routine policy check from their insurance advisor became perhaps the best decision the Guthmans ever made.
It’s common sense that most things in life can’t possibly be planned for. That’s why life insurance has proven to be a valuable instrument for families who want to plan for what could potentially be life’s biggest expenses. Kelley and Doak Snead shared their story about how life insurance prepared them for the unexpected.
Being prudent to save and strategize their finances as much as possible, the Sneads enlisted the help of insurance advisor Wallene Leek, who helped them get started with life insurance planning. This proved to be an excellent decision when Kelley, the primary source of income for the Snead family, was diagnosed with a rare and debilitating form of Parkinson’s disease. Thanks to their coverage, the Sneads were able to get their health insurance premiums paid for. Their safety net also helped them keep paying the mortgage and avoid bankruptcy or worse.
These are just two examples of how life insurance coverage helps people every day. By working with the right advisor and planning out the necessary coverage, it’s possible for anyone to have a similar happy ending.