### Understanding the Value of Life Insurance
When I was 16, my father unexpectedly died after a short illness. My parents didn’t have life insurance, so we had to rely on help from the Department of Veterans Affairs because my father was a disabled veteran. They provided around $2,000, but my father’s funeral cost about twice that. My mother was devastated and worried about how she’d pay for the funeral, support my sister and me, and keep our home. With my sister in college and my own college plans uncertain, things were looking pretty bleak.
Mom already had a full-time job but had to take on another job just to make ends meet. To save money, she decided to rent out our house and move in with family. She also quietly started increasing her life insurance policy. When my mother passed away seven years later, my sister and I received enough funds to cover her funeral, pay off debts, and even save some money. I used my share for a down payment on a house after college, and my sister saved hers for retirement. My parents’ experiences taught us firsthand how crucial life insurance can be.
### Remembering the Importance of Life Insurance
A recent survey by State Farm found that 84% of Americans know life insurance is important to safeguard their family’s future, but many still avoid talking about it. In fact, 42% of people with living parents haven’t discussed estate planning.
It’s not hard to understand why life insurance is relevant. If you’re the main earner in your family, you’ve probably thought about what would happen if you suddenly weren’t there. Or maybe you’ve worried about the effect of a serious illness on your family’s finances. Many families, like mine, need both parents’ incomes to cover everyday expenses.
### Starting the Conversation
Even though we know life insurance matters, some people find talking about it boring or uncomfortable. But State Farm’s study shows that once people have insurance, they generally feel better about it. They feel more “protected,” “confident,” and “relieved.” So, if you haven’t talked about life insurance with your family yet, now is a great time to start.
### Taking Action
Begin by doing a simple needs assessment. Sit down with your spouse or parents and talk things through. Address any concerns and set a timeline for getting a policy.
Disclosure: State Farm sponsored this blog post to highlight the importance of life insurance. The opinions shared are entirely my own, without any direction or influence from State Farm. For more information, visit GoodNeighbors.com or PlantingMoneySeeds.com, and follow #StartLiving on Twitter.