Life Insurance is a Must
Thankfully, The Price Tag is Within Reach

It is always fascinating to see where the discussions contained in the comments section of each post go. The comments from this post, at one point, turned towards a discussion of just how important life insurance is. On top of the pure tragedy of loosing a beloved spouse and parent, are the financial devastation that follows. Bills continue to pile up, and often the other parent is forced into the workforce prematurely and, even then, it is often unlikely that he (or she) will be capable of making up for the lost income.

I can't stress enough how important life insurance is, and not just for the primary breadwinner, but also for a homemaker, whose contributions must also be replaced. And, even a secondary breadwinner should not assume that he or she does need life insurance because that income may not replace the expenses that the family has assumed over the years. For example, a family with an average salaried teacher and a high salaried executive has probably incurred expenses and obligations that cannot be covered by a teacher's salary alone.

The subject of life insurance certainly isn't pleasant to discuss, but with a little practice, the discomfort wanes and the discussion becomes just another routine topic. But, be warned, chances are that if you haven't taken out life insurance and want to discuss the necessity of doing so, the ice will be a bit tough to break in the beginning.

Unfortunately, I know some people that are sorely mistaken in their views regarding both life insurance and health insurance and believe that taking out these policies demonstrates a lack of bitachon. Fortunately, the proper approach as delineated by our gedolim falls on the side of common sense. For more information on the Torah approach, see articles by Dr. Yitzchak Levine and Jonathan Rosenblum that appeared in the Jewish Observer and Mishpacha, respectively.

Fortunately, life insurance is not nearly as expensive as you may have imagined. Here in the SephardiHousehold, we pay around $550 a year for combined policies of over $1,000,000. In the case of the death of my husband (chas v'shalom), the money provided would pay off our mortgage, continue to provide a cash flow stream to cover our expenses, and pay for the college education of our children.

In the case of my own death (chas v'shalom), the money provided would pay for all additional expenses that would need to be incurred should we loose my (most valuable) services. Although I believe that my services are worth much more than they would cost on the free market, the point remains, nevertheless, that the services of a homemaker have value and would need to be replaced at some level. Child care, cooking, cleaning, running errands, shopping, etc. have value. So do the administrative and financial services provided by many "modern" homemakers.

In regards to the cash flow stream, one should know that your agent can and will include expenses well beyond "the basics" and ensure that it covers Yeshiva or Day School tuition also. It is a wonder that the admission applications for Yeshivot and Day Schools do not REQUIRE the parents to prove that they are carrying sufficient life insurance to cover these costs in the case of a tragedy, chas v'shalom.

The cost of life insurance is certainly a difficult cost to manage if you are paycheck to paycheck. But, this cost is so important that one should find a way to include it in the budget. Having life insurance gives parents choices that they might not otherwise have in the case of a tragedy, choices that could be necessary not just for the financial health, but for the mental health of the surviving family. Choices that allow parents to ease into a new life without completely upsetting an already upset home and family.

Dr. Levine suggests that buying couples their first year of life insurance as a wedding gift. I definitely think that it should be a priority of the community and of parents to make sure that all married couples (especially their own children) are educated about the basics and the importance of life insurance.

While I might not have the courage to offer life insurance as a gift to the next chatan and kallah, I admire those who do. Maybe, at the very least, I can muster up the courage to mention the importance of life insurance to young couples I know that are having their first child (or second, or third. . . ). I certainly would not have minded if someone had broached the subject, because until recently, we were not carrying nearly enough life insurance.