Have any of you lost someone near and dear to you? How did you feel? Were you able to just get up and get back to “it”? There is a hole in our hearts when we lose someone. If that someone was a spouse, child, father, mother, sibling, grandparent, best friend, etc., normal may not be achieved for quite a while. But for those who are left behind, there are still kids to feed, bills that have to be paid, obligations that have to be met. And in case you haven’t had this happen before, funerals are not cheap. A relatively bare bones funeral could run up to $10,000 fairly quickly. The lifestyle you have all been living at continues, but the money doesn’t. And for those of you who think that bad things only happen to “the other guy”, I have news for you: There is no selectivity. It could be you, it could be the person next to you. LIFE HAPPENS.
If you are a business owner, what will happen to the business? What will happen to the cash flow that keeps your family protected? If you have partners, how will the deceased partner’s family be paid for their interest? Will that be enough to provide the deceased partner’s family the same income? And how will the partners get the money to pay the widow or widower?
There are many opinions around how much life insurance a person needs. But is an arbitrary figure the correct protection? What are we really protecting? Isn’t it the income a person brings into the household? If that is the case, shouldn’t there be a way to calculate that number scientifically? In fact, there is.
We cannot replace the value a person brings to the family, to the workers they are with, to the friends, churchmates or temple brethren. But we can replace the income. And wouldn’t that be huge?