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A father wanted his daughter’s 30 year old husband to get life insurance (inexpensive for a healthy 30 year old). The husband decided to talk to his father (an actuary who deals in mathematical probabilities). The husband’s father, the actuary, told his son that at age thirty, the chance of anything happening was remote and that he should save his money!
Needless to say, something did happen and the husband passed away in a year. He left behind his wife with a young child. The wife besides losing her husband, of course lost the income that her husband was bringing in.
Enter in the father of the wife and grandfather of the child. He had saved for and was planning to retire. He has now given up on retiring and started helping to support his daughter. How sad is it that one decision wipes out a life time of hard work and retirement?
A husband and wife, in their own business, decided to take out life insurance for each of them in 2001. The husband already had critical illness insurance and they both had long term disability insurance. In 2006, the husband had a heart attack and required quadruple bypass surgery. He was able to claim against his critical illness insurance, collecting $500,000. This allowed him to keep their business going and pay bills while he recovered to full time work.
In 2008, the wife came down with cancer and had to quit working altogether. She was able to receive an regular income through her disability insurance.
Early 2010, she passed away at the age of 48 from the cancer. She left behind her husband to care for and raise four daughters aged 5 to 14. The life insurance that they had purchased in 2001 paid out $3,500,000 to the husband allowing him to work less, to devote needed time to his young family, and to set up a legacy for his daughters from their mother.
The bottom of an obituary in a local newspaper read “contributions to pay for the funeral appreciated”.
In two of these real life experiences, there was no planning. In one there was. Which most closely applies to you? |
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