Business Insurance News & Views

Why Should I get Life Insurance ?

Years ago I was an Allstate agent, and would often talk to clients about life insurance after helping them with their Home & / or car insurance. Loretta was no different. In the early 1990’s, she was a single mother, and had a young son named Shane. Loretta & I first got to know each other when she purchased some tenants insurance – I remember that she lived in a co-op at the time. When I brought up the topic of life insurance, Loretta was interested in hearing more about it. She had a hoarse/raspy voice, & my suspicions were correct. She was a smoker. She balked at the life insurance premiums – she thought smoker rates were too high, she was planning on stopping smoking, and she would definitely contact me about life insurance once she  stopped smoking.

We spoke a couple of times a year, usually about her tenants or car insurance. But she was never able to kick the smoking habit, so she never got around to buying life insurance.

After a few years had passed she called me with great news – she had bought a home, and she was moving into the new home with her son Shane in a few weeks. She asked if we could help her insure her new home. We looked after the new home insurance. But even though she was paying around $50 per month for her home insurance, she felt that her budget was too tight to commit to the monthly payments of any life insurance. So she bought her house with no life insurance protection.

A few years went by, and Shane started University. Loretta and I still spoke about her insurance at least once a year. One day Shane called me. He had never called me before, and I immediately felt that something was wrong. He was calling to make some changes to their insurance, and since his mom & I knew each other for around 10 years by this time, he wanted to give me the news personally. I hadn’t heard from Loretta for a couple of years, because she had gotten sick. She passed away a few weeks ago. Shane was calling to let me know he was selling the house – he couldn’t afford the mortgage payments since he was still in school.

We spoke about his mother for a while. She was a nice lady. A few weeks after that call, I thought about Loretta & Shane, and I remembered some of my previous conversations with Loretta. If she had decided to get a life insurance policy, Shane would not be losing his home at the same time as losing his mother. Shane was a resilient young man. He ended up finishing university, and he started to work. But wouldn’t his life have been easier if Loretta had made a different decision about her insurance.