Wednesday, August 31, 2011

Protect Your Family Nest #FamilyNest

Many of you know that I have a background in the financial services industry. When I was a banker, one of the things I handled was loans. Primarily, it was auto loans and home refinances. We were always required to offer "Credit Life" Insurance to each and every customer. I say required because if you offer it to some and not all, that can be seen as discrimination, so it was important to remember to offer it to everyone. While we were paid incentives for selling it, and had goals to meet, in the beginning I felt "pushy" offering it to people and wondered why they would need it when they probably already had life insurance, if something happened to them.

One day, I had a wife come in crying. Her husband died, which was traumatic enough, but OUR bank had her in foreclosure because his life insurance wasn't enough to payoff the mortgage, and her income was barely enough to pay utilities and buy food. I felt horrible for her. When I pulled the loan documents out, they had declined the Credit Life, which was her last lifeline, so she had to move her children out of the only home they had ever known. From that point on, I never once felt bad about offering that insurance, and while as a banker you never know what someone's insurance portfolio contains, at least you are hopefully making them go over it before they reject that additional insurance.

For my family personally, we take out the maximum amount of life insurance on both of us through Nick's company so that we are covered in case anything happens to either one of us. It is especially important that stay at home moms (particularly those with small children) have life insurance on themselves because your spouse would need to pay for daycare, and other needs if something happened to you. Many people think because they don't have an "income" they don't need life insurance, and frankly that just isn't true. We also have a private policy, which with many companies runs as low as $20 per month, and we put a portion of each paycheck into a savings account for liquidity purposes.

Sometimes people hesitate to think seriously about life insurance because they don't want to really think about their own mortality. However, if you are a parent or spouse, you have an obligation to make sure that those who would be left behind in the event of your demise are taken care of and provided for. It won't just be your annual salary that is permanently gone, but the remaining spouse will then be responsible for any auto and home loans if they want to keep those things. Death is stressful enough to deal with for survivors without the added burden of the financial despair they could be facing.

Take a moment soon to evaluate your own situation and make sure it is sufficient. 

DISCLOSURE: “I wrote this blog post while participating in the SocialMoms and Allstate blogging program, for a gift card worth $50. For more information on how you can participate, click here.”

About Allstate Life Insurance
The Allstate Corporation is the nation's largest publicly held personal lines insurer. Allstate is reinventing protection and retirement to help more than 17 million households insure what they have today and better prepare for tomorrow. Consumers access Allstate insurance products (auto, home, life and retirement) and services through Allstate agencies, independent agencies and Allstate Personal Financial Representatives in the U.S. and Canada, as well as via www.allstate.com and 1-800 Allstate®.

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2 comments:

Paula Robinson said...

Good post, and good info. I am always surprised at how unprepared people are, my self included! Sometimes it costs little to nothing to protect yourself!

Jenny @ Practically Perfect... said...

I couldn't agree more. We just had our first child, and my husband and I both took out life insurance policies in addition to what he has through his employer. My husband thought it would be enough with just a policy for him, but I reminded him of all the costs associated with daycare, cleaning, food prep and grocery shopping - all stuff that I do - and we got policies for both of us. It's definitely worth the expense.