Bill Hobson had always been active. He met his wife, Connie, at a softball game when she went to watch a friend play, but ended up watching Bill instead. Years later when Bill developed a weakness in his right hand, he and Connie thought it was a judo injury. It wasn’t, and his doctors delivered the devastating diagnosis: Lou Gehrig’s disease.
Bill continued to work for several more years as a product demonstration specialist at a telecommunications company but eventually had to retire. The last year and a half of Bill’s life were especially difficult, as he lost much of his muscle function. Ultimately, he had difficulty breathing and could not feed himself.
The Hobson family rallied. The couple’s daughters, Carleigh, Paige, and Cari, took turns caring for him between classes and work; Connie did the same during her lunch hour at a dentist’s office. Bill finally succumbed to the illness. But Bill’s illness and death didn’t devastate the family financially, thanks to insurance planning.
Short- and long-term disability insurance benefits through his company helped the family make ends meet when Bill could no longer work. Through a group life insurance program, his company provided one time his annual salary in life insurance benefits, and Bill bought supplemental coverage to increase the benefit to three times his salary. He also had an individual life insurance policy that he purchased on his own.
Insurance professionals helped Connie turn the death benefits from Bill’s various policies, and his pension and 401(k), into an income stream. It has helped Connie remain in the family home, and take an occasional vacation with the girls. The goal was to live a similar lifestyle to what we were living when Bill was working, Connie says. Not fancy, but comfortable.
Insurance can be your family’s financial lifeline when adversity strikes, so it’s important to understand the coverage your employer offers and to consider if it’s enough to meet your needs.
Don’t hesitate to ask us for help. It may be time for a complimentary financial checkup.
Note: This hypothetical example is for illustrative purposes only, and its results are not representative of any specific investment or a mix of investments. Actual results will vary.