The Impact of Life Insurance on This Mans Family’s Journey

In light of a nationwide study conducted by LearnVest and Guardian, it is evident that while 57% of individuals possess life insurance, only 28% feel fully confident in their comprehension of life insurance matters. Astonishingly, 66% admit to lacking a clear understanding of the process for obtaining a life insurance payout.

Today, Alden Wicker, an Assistant Editor at LearnVest, shares a deeply personal narrative from her childhood, underscoring the profound significance of parents securing life insurance. Her willingness to share such a heartfelt account is greatly appreciated, and in any responses, we encourage you to be respectful.

The setting was December 1989. Exiting his office in New Jersey, my father gathered his belongings with eagerness, looking forward to reuniting with our family for the holiday celebrations. A colleague engaged him in conversation just before his departure. “Walter, what’s on your Christmas wishlist?”

“Absolutely nothing. I already have everything I’ve ever wanted. I have my three daughters.” In other words, my mother, my 9-year-old sister, and me at the age of 3.

A Skyward Bound Journey

Having acquired his private pilot’s license right after his service in the army in 1970, my father had an unwavering passion for flying. My mother reminisces, “Flying was his true love; apart from spending time with you all, he didn’t have any other leisure pursuits.” In 1988, he purchased a small, pre-owned, two-engine Piper aircraft to commute between his offices in New Jersey and North Carolina. A meticulous pilot, he lavished meticulous attention on his plane, treating it almost obsessively.

However, mere weeks before that fateful Christmas, his aircraft underwent its annual inspection, revealing a missing component for detecting engine fires. The mechanic assured him that he’d likely be fine until the missing part arrived.

On that day, my father entered the cockpit, taxied to the runway, throttled forward, and ascended into the sky.

The Life We Knew

In 1989, life smiled upon my family. My father enjoyed a lucrative position as the president of a marketing firm, supplemented by income from his consulting venture. Meanwhile, my mother dedicated her time to nurturing my sister and me at home, having left the workforce in 1980 after my sister’s birth.

We had recently relocated to a quaint North Carolina town, drawn closer to family connections. Acquiring land, my parents embarked on constructing their dream abode and persuaded my grandparents to erect a small dwelling nearby. Confronted by lackluster public schools, they opted to enroll my sister in a private institution and harbored similar intentions for my education.

In essence, numerous financial responsibilities hinged on my father’s earnings. Yet, they were financially sound, bolstered by an emergency fund equating to about two years of his take-home pay.

My mother, assuming the role of budget manager, orchestrated mortgage-related paperwork for our new residence and handled bill payments. Around the time of my birth, she evaluated my father’s life insurance coverage through his employer. Recognizing that numerous employer-offered policies would only disburse around $30,000—insufficient to sustain a family our size for long—she embarked on calculating the requisite coverage, factoring in elements like our mortgage and daily expenses. This led her to procure an additional term life policy for him and a whole life policy for herself, intended to finance our collegiate endeavors as well. (Differences between term and whole life policies are delineated here.)

Unbeknownst to her, this decision would emerge as the most astute financial move she ever made.

Navigating Tragedy

That particular day remains vivid in my grandmother’s memory. Balancing on a step ladder at my grandparents’ house, my mother beckoned to my grandfather, “Dad? Please come quickly. I feel as though I might faint.” Guiding her down from the ladder, he helped her lie down for a brief respite.

Interestingly, at practically the same time in New Jersey, my father transmitted a radio message to the airport, alerting them to an engine fire on his right side. A few moments later, he communicated again, revealing that the engine had detached and he was spiraling downward. Those constituted his final words. Official records classified the aircraft as “destroyed.”

Subsequently, my grandmother received a call from a friend of my father’s while I, along with my sister, was present in our kitchen. Displaying remarkable composure (noteworthy given that my father ranked among her closest friends), she arranged for a relative to collect my sister and me before driving home to convey the news to my mother.

Given my tender age of 3 back then, I retain only fleeting memories from that period. One heartrending recollection involves a mental image of my mother, several weeks following the tragedy, slumped over the steering wheel of her pickup truck, tears streaming down her face.

Life, however, persevered, allowing me to cherish a plethora of joyous moments. I recollect my mother inquiring, a few months later, about my preferred color for my new bedroom. (“Pink!” I proclaimed.) Memories also encompass my time at Mrs. Stamp’s private preschool, where I marveled at cocoons and learned to spell “cat.” I fondly recall strolling hand in hand with my sister en route to our grandparents’ abode for delectable Southern feasts featuring chicken and dumplings. Additionally, my mother’s diligent number-crunching on her desk calculator, accompanied by the familiar “chit chit chit” of results being printed on ticker tape, remains etched in my mind. She never seemed perturbed or anxious when perusing the tape’s figures.

This era of stability and happiness was made feasible by life insurance.

Contemplating an Alternate Reality

My mother confronted a slew of unexpected expenses: funeral costs, attorney fees related to my father’s estate, the mortgage, day-to-day expenditures, potential private school or childcare charges, and the imperative of saving for our future college education. Absent life insurance, she would have navigated this financial maze without any income, professional background, or savings to fall back on. The prospect of reentering the job market after nine years of absence, particularly in our small community, would have proven arduous. “I lacked a fallback career,” she acknowledges. “Returning to school would have been necessary.” Her path would likely have led to a dual juggle between employment and night classes, while my sister’s schooling would have been compromised immediately following our father’s demise.

Furthermore, the completion of our home would have been a distant dream, leaving us saddled with an unsellable property burdened by an imposing mortgage. Remarkably, it took three years to find a buyer for the finished residence.

Life insurance was the answer. Reflecting on the life insurance claim process, my mother elucidates, “It’s a painful process, but it’s relatively straightforward. You contact the insurance company, provide an account of the situation, complete a form, and submit a death certificate.” Subsequently, a check is dispatched. (Remarkably, contemporary life insurance companies often abstain from insuring individuals with non-commercial pilot licenses, presumably influenced by an increase in accidents involving such individuals.)

In our situation, the life insurance policy eradicated the mortgage and extended financial support for my mother to remain at home with us until my high school years. Private school