After reading an Associated Press article recently, I felt compelled to write a brief article about “Planning for the Unexpected!”
One of the most difficult “mean times” faced by individuals and families every day is the death of a loved one — especially if that loved one has direct responsibility for the well-being of the rest of the family. One aspect of entering into the process of healthy reconciliation of our loss and grief experiences is the creation of a sense of stability for self and family members — both financial and emotional.
One of the safeguards against unnecessary financial difficulties for families in the aftermath of the death of a loved one is the existence of life insurance. Now, believe me! I know how difficult it is to entertain the thought of losing a loved one — even more, actually LOSING a loved one to death! It seems that people often shy away from discussing the need and necessity of life insurance because it causes them to think about the potential death of a spouse or partner.
One “easy” solution is for people to take the life insurance program offered by their employer and feel content in the assumption that those benefits are securely in place for their beneficiaries in the event of an untimely death. On the surface, this might appear to be good planning. Digging deeper, one might discover that depending solely on employee benefits is no planning whatsoever!
The article I read deals with events surrounding the federal Employee Retirement Income Security Act which is essentially designed to protect employee benefits and not necessarily the employee or beneficiary. It seems that an increasing number of cases where benefits were thought to be secure and would serve to meet the needs of beneficiaries are instead being decided in favor of the employer thus shutting out the intended recipient from needed financial resources.
Often, instead of beneficiaries receiving the sum promised, they are given only a refund of the premiums paid in to the employer sponsored plan which in most cases will not even cover the cost of a funeral! This is happening all the time!
Now, we could wait for Congress or employers or the Courts to shift gears, change directions and do the right thing OR we can take steps to make sure our loved ones are taken care of if something were to happen to us. This is the option that receives my endorsement!
The main difference between an employee sponsored life insurance program and a self-owned program is simply this — I own the program! It cannot be taken away from me as long as I meet the contractual elements of the program — paying the premiums! Some of the more obvious benefits of a Self-Owned Life Insurance Program are as follows:
- A self-owned program is Portable (it is mine even if I change employers)
- It can be Adjustable (often a term insurance program has options related to upgrading part or all of the coverage to a permanent program)
- Premiums can be locked in for varied time periods (good for budgeting purposes)
- Additional safeguards may be available (such as waiver of premium options that automatically kick in and pay the premiums for you under certain conditions).
Now, I do not work for an insurance company! I will NOT receive any sort of commission or reward for writing this! I have no affiliation with any organization that will give me any benefit whatsoever for posting this opinion! I write this because I want you to be in a position to make choices for your and your family’s future should the unthinkable occur!
I encourage you to contact a life insurance professional today! Don’t know one? Ask a friend or co-worker for a referral! Contact the company that carries your homeowners or auto insurance — they likely deal with life insurance products as well! Google life insurance companies and see what comes up and who in your area offers competent professional counsel related to life insurance.
In fact, there is a wonderful non-profit organization that can help you determine your needs and negotiate the steps necessary to obtain the protection most appropriate for your situation. It is the Life and Health Insurance Foundation for Education or L.I.F.E. You can visit their website by going to http://www.lifehappens.org/
Please don’t assume that your employer sponsored benefit plan “has your back!” Take charge of your future and the future of your family, spouse or partner by exploring the power provided by owning a personal life insurance program! I truly believe you will be glad you did!
Obviously, the existence of life insurance will not eliminate all the challenges faced by individuals and families after a death loss. It will not replace the one whose absence has created an unfillable void in your life. It will not necessarily make you feel better. It will however provide resources that might not otherwise be readily available (debt relief; therapy if necessary; funds for necessities or college; etc.). It can buy precious time to be with children and other family members — so vital in the process of healthy mourning. It can help create that sense of stability necessary for all other tasks of mourning ahead of you.
I am hopeful that you will find this information useful as you deal with your own personal losses and assist others as they deal with theirs. May blessings be yours today!
Peace!
Mark Hundley
Author’s Note: January 24, 1989 – some 23 + years ago – was a day on which my life was changed forever. It was on that date that I was widowed leaving me to be the single father of a seven year-old daughter. Of all the challenges that faced me beginning that day, creating a sense of stability for both my daughter and me was at the top of the list. Two years and two days prior to that fateful day, Christy and I made a decision to purchase life insurance. Although the benefit received from the policy in force on Christy’s life was not substantial, it enabled me to make decisions that continue to reverberate through my life to this day. With the benefit (1) I was able to alter my career path and spend an entire year with my daughter without the burden of having to work; (2) I was able to enter into counseling weekly for the first year; (3) Begin graduate school to become a counselor. I KNOW first-hand the power of life insurance. That is why I am so very passionate about Planning for the Unexpected!
