### Understanding the Importance of Life Insurance
When I was 16, my father passed away after a short illness. Unfortunately, my parents didn’t have life insurance, so we had to rely on the aid from the Department of Veterans Affairs because my father was a disabled veteran. The assistance amounted to about $2,000, but the funeral costs were double that. My mother, already overwhelmed with grief and debt, struggled to figure out how to cover the funeral expenses and support my sister and me. She even worried we might lose our home. My sister was away at college, and my own college future was uncertain, making our situation look pretty grim.
Despite already having a full-time job, my mother had to take on a second job to make ends meet. This extra job kept her busy all the time. To cut costs, she decided to rent out our house and moved in with family. Quietly, she started to increase her life insurance policy. When my mother passed away seven years later, my sister and I received enough money to cover her funeral, pay off lingering debts, and even save a bit. I used my share as a down payment on a house after college, while my sister put hers into retirement funds. The contrasting life paths of our parents taught us firsthand the importance of life insurance.
### Grasping the Value of Life Insurance
A recent State Farm survey shows that 84% of Americans understand the value of life insurance for their family’s future. Yet, meaningful conversations about it are still lacking. About 42% of people with living parents admitted they’ve avoided talks about estate planning. This is quite a stark contrast!
It’s not hard to see why life insurance is relevant. If you’re the main income earner, you’ve probably thought about what would happen if you suddenly weren’t there. You might have wondered how a serious illness and the related medical bills would affect your family. Maybe both you and your spouse work, and your combined incomes are essential for everyday expenses.
### Starting the Conversation
Even though life insurance is important, some people, like my husband, find it an uncomfortable topic. However, the same State Farm study suggests that people generally feel more positive after purchasing life insurance. They feel more “protected,” “confident,” and even “relieved.” If you haven’t talked about life insurance with your loved ones yet, now is the time.
### Take Action
You can start by doing a basic needs assessment. Have a conversation with your spouse or your parents (or both). Address everyone’s concerns and set a timeline to get a policy.
Disclosure: State Farm sponsored this blog post to highlight the importance of life insurance. My views are entirely my own and were not influenced by State Farm. For more details about this topic, you can visit State Farm’s website.