Life Insurance Claim Example

Why You Need Life Insurance: Claim Example

  |   Life & Health Insurance, Life Insurance, Personal, Resources   |   No comment

Protect what matters most with life insurance from Nationwide. You insure your car and your home – but what about your loved ones? You want to know that your family is taken care of in the event of your passing.

Life Insurance Claim Example

Mary was 55-years-old when her husband, Jim died. Unfortunately, that is also when she discovered he did not have a life insurance policy. He’d borrowed against his 401K and hadn’t taken any benefits through work, so as to not lower the amount of his paycheck. They both had expensive car leases and rented an expensive home. Mary was suddenly widowed and left with nothing. She was not even old enough for Social Security. She had to move in with her daughter’s family and start from scratch. Her daughter had to cover the costs of Jim’s funeral.

This life insurance claim example was a real-life, horrible situation for Mary, and sadly, it happens all too often. We know no one likes to discuss death or life insurance, but it’s important that you and your spouse talk about what would happen if one of you passed away.

Life insurance can cover financial obligations, such as :

  • Replacing your lost income. Even if your spouse has a full time job with a salary that would be adequate for them – what about joint debt? what about funeral costs?
  • Maintain their current lifestyle. You want your spouse and family to be able to maintain their current lifestyle – having the right life insurance can help provide them with security and peace of mind for the future.
  • Pay off debts (e.g. mortgage, car, student loans and credit cards). Will you be leaving behind a legacy of debt? Make sure your family won’t be left with the burden. The payout from your life insurance can be used to pay off debt.
  • Daycare costs. Was your spouse a stay-at-home parent? Will daycare costs be a new expense for the surviving souse?
  • Pay for future educational expenses. With your life insurance policy, you can ensure that your children will have money to cover their educational expenses.

Life insurance can also help to create a financial legacy for children and grandchildren.

Call or email Cherie, our Life Insurance Specialist, today for a no-obligation life insurance consultation. 727-748-4226/