Your Money

Gloria and her husband, William, understood the importance of insurance




Life insurance isn’t for you – it’s for those you love
Life insurance is a simple answer to a very difficult question: How would my family manage without me? It’s a subject no one really wants to think about. But if someone depends on you financially, it’s one you cannot avoid.

There are many types of life insurance, but for all of them the bottom line is the same: It pays cash to your beneficiaries after you die, allowing the financial plans you put in place to continue uninterrupted. Life insurance payments can be used to cover final expenses, daily living expenses, mortgage payments, outstanding loans, college tuition, and other essential expenses. And, just as important, the death benefit proceeds of a life insurance certificate are almost never subject to federal income taxes.

Take a look at your own family’s needs. Do they rely on your paycheck? Do you have money set aside for the kids’ college tuition, the mortgage on your house, the loan on your car, or your own funeral expenses? If not, you need life insurance!

“We understood the importance of insurance.”

Earlier this year Gloria lost her husband of 61 years, William. Of course she was saddened by his passing, but she knew things were well taken care of because she and William had planned. “Ever since we married, it seems as though we were planning for the end,” she said. “It was strange to our friends, but we understood the importance of insurance and we wanted to make certain that each of us would be able to live, albeit lonely, comfortably after the other had passed.”

Even before they were married, William’s mother understood the importance of life insurance. That’s why she purchased a Royal Neighbors insurance certificate on William when he was a youngster, which he kept in force. “I found the certificate in a safety deposit box among other things,” she said. “I called the office and filed a claim. It was that simple.”

“I don’t know what would have happened had he not insured his life.”

Pat Anglin, a managing general agent for Royal Neighbors of America in Colleyville, TX, recalled the untimely death of one of his agents. “Danny was in his early 20s when I hired him,” he said. “He and his wife, Misty, had a 2-year-old daughter with another one on the way when Danny was in a tragic automobile accident. He believed in the importance of insurance so much that he actually carried his certificate in the front seat of his car and showed it on sales calls. I don’t know what would have happened to Misty and their children had he not insured his life.”

3 in 10 adults have no life insurance

Unfortunately, studies indicate that Gloria, William, and Danny are among the minority of adult Americans who own individual life insurance. Only 41% of adult Americans own an individual life insurance certificate. Three in 10 adults have NO life insurance at all, leaving loved ones to figure out what’s next.

“We did as well as we could.”



Carin and her sister had to rely on loved ones




At the age of 21, Carin had never really thought about life insurance or losing a parent for that matter. But when her mother died unexpectedly, without life insurance, she and her sister were forced to rely on monetary gifts from loved ones to help pay for a memorial service. “Looking back, I believe we did as well as we could,” she said. “But her death opened my eyes to how important life insurance really is. Even if it’s just to cover the expense of a funeral, having insurance relieves so much stress on those left behind.”

“I had to deal with unnecessary stress.”

The stress and grief felt at the time of a loss varies for everyone. For Sarah, the stress of the sudden loss of her father was overwhelming and left little time to actually grieve. “At the time of his death I was attending a local community college, saving money to transfer to the private four-year university my father attended,” she said. “I was also employed by my father and was suddenly without an income. The youngest of four children, and still living at home, I found myself making funeral arrangements and sorting through his belongings hoping to find some sort of insurance to help pay for the funeral. We never found any.”

Had Sarah’s father owned life insurance, even to cover the final expenses, she could have allowed herself the time to grieve instead of worrying about how to pay for his funeral. “I was still able to graduate from my father’s alma mater thanks to scholarships and grants, but I will never forget the unnecessary stress I had to deal with at the saddest time of my life.”

Most Americans need life insurance, and many who already have it may need to update their coverage.

September is Life Insurance Awareness Month. Take this time to evaluate your needs. It’s the least you can do for your loved ones.

September is Life Insurance Awareness Month, a good reminder to protect the ones you love. Contact Royal Neighbors at
(866) 845-6665 to evaluate your family’s life insurance needs.