A colleague sent a letter to me relating a conversation he had about life insurance with one of his friends.
Dear Cheryl,
I took my friend out to dinner several weeks after her husband passed away. It was one of their favorite places to go, and we had a long visit talking about her husband and the next phase of her life. She shared many happy memories, and reflected on life’s lessons.
My friend’s husband had built up a prosperous company and they both enjoyed their good years. They have a lovely home in town and a getaway at the lake. The value of these assets, along with other investments, had taken a beating over the last several years.
Some time in the recent past, her husband had relinquished his whole life insurance and purchased term life insurance. My friend was aware of the change in policy, and at the time her husband was hale and hearty. Sadly, the policy he bought covered accidental death, not death by illness. Since his death was not an accident, the policy did not pay.
My friend is going to be OK, though she must now sell her real estate assets and hope to break even. She has a large, loving family and will be taken care of, but it seems to me that this unusual error in judgment carries a heavy price.
It can be a difficult subject to breach but, as we get older, it is important to make sure we are adequately insured. I cannot imagine a circumstance where as an insurance agent I would recommend an accidental policy at the exclusion of more comprehensive coverage. Further, even savvy men and women can make mistakes. Please set aside some time to review both your own coverage and perhaps suggest your parents speak to their insurance agent to review their assets and liabilities and make sure their life insurance is up to the task of protecting their loved ones from hardship.
