Life Insurance Has Lasting Effects Well After We’re Gone

by Sean Bryant on September 26, 2012

When we are in our 20’s or even 30’s the last thing on our mind is having the right life insurance policy in place. Once your life starts progressing from single life to the stage where you have a spouse and eventually kids, this becomes more and more of a necessity. Making sure they are protected financially in case something happens is extremely important.

While this shouldn’t be the case, a lot of us make our large purchases based on our total household income. We purchase our homes based on how much our family as a whole can afford. Because of this we are left with a severe affordability gap if one person dies. A family might be able to afford a $2,000 mortgage with a double income, but there is a good chance that is not the case for a single income.

This is where life insurance would come into play. It helps to bridge the void that is left behind when income is lost after death. Life insurance helps people to continue to live their lives the way they had before the unthinkable happened. Let’s face it, times are hard enough when we lose the person we love, why add another stress into the picture.

Prudential sent me a couple of videos that I wanted to share with you. I’m not going to lie, the stories are really sad, but they put the need for life insurance into perspective. To see both videos just refresh the page.

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Sean Bryant

Sean Bryant created in 2011 to help pass along his knowledge of finance and economics to others. After graduating from the University of Iowa with a degree in economics he worked as a construction superintendent before jumping into the world of finance. Sean has worked on the trade desk for a commodities brokerage firm, he was a project manager for an investment research company and was a CDO analyst at a big bank. That being said he brings a good understanding of the finance field to the One Smart Dollar community. When not working Sean and he wife are avid world travelers. He enjoys spending time with his daughter Colette and dog Charlie.
  • I purchased extra life insurance for the first time after my wife was pregnant without 1st. Before then, I had life insurance but it was the basic plan given to me at work. Once I knew kids were on the way, I quickly picked up a more robust plan. With as cheap as it is… it’s a no brainer.

  • Those stories are so sad. Brought tears to my eyes. I can’t imagine life without my husband, or how he would be able to do it all without me, but I’m glad that we’re prepared financially at least.

  • John S @ Frugal Rules

    Great points. I worked in the life insurance industry for about five years, and I definitely saw my share of sad stories like this. I really view life insurance as a way of providing for my family in the event I were to pass.

  • Aaron

    Life insurance is so important for folks to get – life is so short and unpredictable at times. And, it’s really a selfless gesture towards your family.

  • Kim

    It would be hard enough to deal with the loss of a loved one without having to deal with the financial loss as well. If people depend on you, you need to insure for that.

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