Disability Insurance Saves a Family—Twice

Disability Insurance Saves a Family—Twice

by | May 18, 2020

Valerie King was not a believer. When she transitioned from her medical residency to practicing as an emergency room physician, she didn’t think she needed disability insurance. “I could never envision a life without working,” she says. Her insurance professional convinced the young doctor otherwise.

It was wise advice. Although Valerie never thought she would need it, a condition called ulcerative colitis made the decision for her. The disease and a series of surgeries made it impossible for her to carry out her duties, and she found herself unable to practice the profession she loved. It was her disability insurance coverage that allowed her to survive financially and care for her three young daughters who she was raising as a single mother.

Life also had a second chapter for Valerie. She met and married Tim, also a divorced parent. They looked forward to raising their blended family together and sought the advice of insurance professional Larry Ricke, CLU, ChFC. In addition to the life insurance he had recommended, Larry made sure Tim understood the importance of disability insurance. Tim didn’t believe he’d ever need it, but with Valerie’s urging he finally agreed to get coverage.

“No one thinks lightning will strike twice,” says Larry, “but in this case it did.” Tim, who had a high-profile position in the printing business, came close to dying from an undiagnosed aneurism and valve issue with his heart. A risky operation saved his life but ultimately left him unable to return to work. Again, disability insurance made it possible for the family to go on financially.

“Most people think, ‘It will never happen to me,’” says Valerie. “But the truth is it can—and does. Everything else goes away if you don’t have disability insurance coverage and you can’t work.”

A Dream Lives On

A Dream Lives On

by | May 18, 2020

Scott Young liked to dream big. Although he came from humble beginnings, through hard work he turned a one-man enterprise into the largest heating and air conditioning business in their area. That allowed Scott and his wife, Cathy, to fulfill another dream—to build a home in the country and work it as a hobby ranch. They wanted to give their two daughters a life that revolved around the outdoors and good living.

Insurance professional Steve Sabo made sure Scott was properly insured at work and at home. Scott ran the business with his brother, David, and a buy-sell agreement funded with life insurance ensured the business could continue if one of them were to die. Plus, Scott had a personal life insurance policy that would allow Cathy and the girls to be OK financially if something were to happen to him.

As the business and Scott’s financial responsibilities grew, Steve knew it was time to reassess Scott’s life insurance needs. They did, indeed, find a need and immediately set to work to increase Scott’s personal and business coverage.

Tragically, just weeks after the life insurance applications were submitted, Scott suffered a fatal accident. On July 4, this avid outdoorsman drowned while paddle boarding in a nearby river.

While Cathy and her daughters must now make a new life for themselves without Scott, the life insurance has been invaluable. The insurance through the business ensured that Cathy was compensated for Scott’s portion of the company instead of becoming an owner of a business she had no interest in running. Scott’s personal policy cemented their dream. “I have an incredible amount of gratitude, and it’s all because of the life insurance,” says Cathy. “Without it, we’d be gone from this property. Now my daughters can grow in the home we built, as we create a new life together.”

Living a Whole Life

Living a Whole Life

by | May 18, 2020

There were no children on the horizon yet for Norm and Sandy Page, but this young couple, in their early 20s, decided to buy whole life insurance policies. They had met with Thomas Waring, Jr., CLU, ChFC, their financial professional, who explained that because whole life insurance also builds cash value, it would help them with their goal of saving for retirement, while also protecting them in case either were to die prematurely.

The Pages’ plans changed in an instant when their son, Adam, was born with spina bifida, a malformation of the spinal cord. The couple had good health insurance coverage through their jobs, but there were certain things it didn’t cover like special braces that Adam needed to walk. To pay for these items, the Pages tapped into the cash value that had accumulated in their whole life policies.*

The money from the policies even allowed Adam to pursue a special dream. He developed a passion for sled hockey, and Norm and Sandy borrowed from the life insurance policies to pay for some of his equipment and training needs. At 15, he became the youngest person to make the U.S. National Sled Hockey Team and at 18, he won gold at the Paralympic Games in Vancouver.

Over the years, the Pages have purchased more life insurance to make sure that Adam will be adequately provided for should he outlive his parents, which doctors say is likely. For his part, Adam is now attending college to pursue a career in sports management. He even bought his own whole life policy, as he prepares for his life ahead. “I’ve seen what it’s done for me,” says Adam. “Whole life insurance has provided me the opportunity to live a whole life.”

*Withdrawing or borrowing funds from your policy will reduce its cash value and death benefit if not repaid, and may result in a tax liability if the policy terminates before the death of the insured.
The Responsible Thing to Do

The Responsible Thing to Do

by | May 18, 2020

Fast forward to today—Nathan, Summer’s son, is now 15 and a sophomore in high school. The life insurance Summer purchased when she was pregnant has allowed Nathan to pursue his dreams throughout childhood, and some money has been set aside for college. “Her belief in life insurance at such a young age and her love for her son still amaze me today,” says Coleen, Nathan’s grandmother.
Updated in May 2023

Summer was much like her name: bright, bubbly and energetic. She was also hardworking. At 22, she was managing her own household, working full-time as a waitress, while attending school with dreams of becoming a doctor.

She would stop by the insurance agency each month to pay her auto insurance and was always greeted by insurance professional Christie Trahan. One month, Summer revealed that she was expecting a baby. Christie was thrilled for her, but also knew she had to talk to Summer about something more serious: life insurance. Summer listened carefully, but said she’d think about it. Money was tight for the single mom-to-be; she also wanted to discuss it with her mother, Coleen.

After asking her over the course of several months, Christie told Summer that she felt she needed to ask one last time: “Are you sure you don’t want to buy that life insurance?” At $12 a month, Christie felt that it was affordable even for a working student. Summer agreed, saying that she knew it was the right thing to do, even though her mother had advised her to wait. That was a fateful decision. Just nine months after Summer gave birth to Nathan, she was struck by a car while walking and killed.

After the accident, Coleen called Christie to ask if Summer had gone ahead and bought the policy. Christie assured her she had. Relief swept over Coleen, as she now had funds to give Summer a beautiful funeral. The death benefit also allowed Coleen to take a leave of absence from her job to take care of Nathan.

Nathan is now a happy 5-year-old, and Coleen has officially adopted him. She set aside the remaining money from Summer’s policy for Nathan to use for college. “I’m so proud of Summer for making that wise decision for Nathan,” says Coleen.

Careful Planning Saved a Family and a Business

Careful Planning Saved a Family and a Business

by | May 18, 2020

The change from being a pastor to opening up an IT business is not for the fainthearted. But Tim Meredith knew this career leap would benefit his family by allowing them to stay in the area they loved, while also letting him to try something new.

While it may have been an adventure, neither Tim nor his insurance professional Joe Grabar, CLU, CFP, took the change lightly. Since Tim no longer had benefits through the church, they put in place health insurance, increased his personal disability insurance coverage, and added long-term care insurance. Importantly, Tim also got a disability insurance overhead policy for the business.

Just six months later, on a Sunday afternoon, Tim found himself doubled over in pain. What he thought was a kidney stone was, in fact, an iliac aneurism, which caused him to suffer two strokes. Doctors operated, but said he only had a 5 percent chance of survival. Tim beat those odds, reviving from a coma after three weeks and eventually moving on to rehab.

While Tim has been away from his fledgling business, it continues on in his absence because of the planning he and Joe had done. The disability insurance overhead policy helps the business meet payroll and pay vendors, while assuring customers that the business will go on. Tim’s personal disability policy replaces a portion of his salary, which helps pay for the family’s everyday expenses, such as the mortgage and groceries. The long-term care policy is there to pick up where health insurance leaves off, when it comes to rehab and other care expenses.

Tim is doing better each day, and plans on going back to work at his company in the near future. “I’m so thankful I had these policies in place,” says Tim. “Without this planning, I’m not sure where my family would be financially, or if my business would even still be alive today.”

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