life insurance, death benefit, family insurance, wealth blog

The True Value of a Death Benefit

My perspective about life insurance was changed forever when I was looking up into the faces of my family from a hospital bed. We didn’t know if I was going to make it one more day or live to see my next birthday, let alone having a long life. I had been diagnosed with cancer and was in the hospital receiving a bone marrow transplant. For anybody who doesn’t know, that’s a one-way street. You either make it or you don’t. During my stay in that wing of the hospital where they only do bone marrow transplants, four other patients didn’t walk out. One of the things that was weighing heavy on my mind was how my loved ones’ lives would change if I never made it out of this hospital. What standard of living was my family going to have if I wasn’t there to provide an income? At that time, more than any other in my life, I realized that, although I had provided a good living for my family throughout, I had neglected to protect my family in the event something happened to me.

Often, when life insurance is considered, it is mistakenly put in the same camp as other types of insurance, ie. Auto, home, disability, health etc. Here’s the thing – all other insurance is based on the “possibility” of a loss. Auto: in case there is an accident. Home: in case there is a fire, flood or earthquake. Health: in case we get sick.

I have never met anybody that got out of this life alive. We are guaranteed to die. It’s just a matter of time. So why is it that when it comes to insurance, while the greatest majority protect their homes, cars and health with insurance, far less cover the event that is guaranteed to take place? It’s like placing a bet where you know the odds of winning are 100%. It probably has something to do with the human genetic makeup and the fact that a part of our core survival mechanism is to deny our own mortal fragility and the fact that any one of us could die at any time for a multitude of reasons. This outlook is for the best, as it would be pretty bleak if everybody just waited for the inevitable to happen.

What if we took a different approach to life insurance? What if we approached it from an abundance mindset, rather than a mindset of fear? If we were to look at the death benefit as a way to protect our loved one’s standard of living, whether we are with them or not, then we could justify owning enough life insurance on ourselves and our loved ones that they would not have to struggle financially in the event of our “sooner than expected” passing. Instead of “Till death do us part,” we take the approach of “In life and in death.” Perhaps, the first thing we would look at before we buy that first house together, is to own adequate life insurance that we can both stay in the house, even if something were to happen to one of us.

Life insurance is something you have when you love someone else. It is a gift of love that will be delivered when everything else in life feels chaotic or is crashing down. It will be the calm in the storm and the path to be able to move forward. It is the peace of mind that allows a family to sleep at night, knowing that the standard of living that they have become accustomed to, will not suddenly disappear without warning. No one will ever get rich from a death benefit. The allowed coverage is based on one’s ability to earn over a specified period of time and is a multiplier of income. That means it is NOT possible for a person to be “over-insured.”

At Paradigm Life, we want to work together with those who want the benefits of wealth and sound investments but also want their family to be covered in tragic times. Reach out to us if you have and further questions.

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