Joan, a former business associate, recently engaged me to prepare a comprehensive financial plan for her. During the course of my discussion with her, she revealed her experience with what she calls her “life preserver”we call it life insurance.
In 1979, at the age of 22, Joan found herself newly engaged and a new homeowner. Her fianc?, then age 23, had a friend who was in the Million Dollar Round Table and wanted to sell them a policy. Joan remembered thinking that they were “only in their 20s, with their entire lives ahead of them.” Life insurance was the furthest thing from her mind at the time. As luck would have it, the agent persisted with Joan and her husband. He painted a picture of their future and convinced them to start protecting this future by purchasing life insurance. They agreed to purchase two whole life policies in the amount of $30,000. At the time that was all they could afford. The agent assured them that this was the first of many purchases of life insurance they would make.
Joan and her husband were blessed with two children. As her family grew, her agent made numerous attempts to encourage them to buy additional insurance, but they always found other things to do with their growing income. After all, they had the house to furnish, children to raise and to educate, taxes to pay, and all of lifes other many expenses to handle. Life insurance just didnt seem to be a priority. Their employers offered group coverage, which they felt was sufficient.
In 1989, at the age of 33, Joans husband was diagnosed with leukemia. He succumbed to his illness, leaving her alone with a 3-year-old son and a 7-month-old daughter. Joan was devastated. She wasnt sure how she was going to maintain her lifestyle and raise her children in the home they had grown to love. Joan felt like she was drowning.
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Soon after her husbands death, she contacted her agent and within 24 hours she received a check for the proceeds of the policy. Her life preserver had arrived!