Insurance policy can offer family security

The stories come with sad regularity.

Another family left in financial ruin by the unexpected death of a breadwinner. No life insurance. Mounting bills.

In one of the latest tragedies, two weeks ago today, a husband and wife from St. Stephen were killed in a car accident, which their three young children survived. As The Post and Courier reported, family members with modest financial resources took the children in, and had to seek donations to pay for the two funerals.

It's hard to blame young adults for not thinking about life insurance. And at a time when many people are cutting every expense they can, it's understandable that people don't buy something for which they may perceive no need.

For a couple like the Whites from St. Stephen -- he a laid-off worker living in his mother's house with his family, she a recently hired fast-food restaurant manager -- any extra expense can pose a large hurdle.

They deserve no blame for being uninsured, but their tragic deaths and the children left behind can serve as a lesson and a cautionary tale for us all, for anyone who has another person relying upon them financially.

Life insurance is surprisingly inexpensive. For about $200 to $300 a year, most healthy young adults could get several hundred thousand dollars of term life insurance. Smokers and those with health problems pay at least twice as much.

Term life offers a certain dollar amount of insurance for a set period of time, typically 10, 20 or 30 years. When the term expires, so does the policy, and unlike more expensive whole-life insurance, you don't get back any of the money you paid in premiums.

Insurance will never bring back a spouse or parent, but the money can help care for survivors, pay the mortgage, and finance the educational expenses of children.

Securing a term life policy when you are young and healthy locks in low rates, and gives your family peace of mind.

A term life policy can supplement insurance that may be provided by an employer, which is at risk if you lose your job, as well as any payments from Social Security. Social Security survivor payments can be substantial, particularly when there are minor children involved, so that's one more reason to read those annual statements from the Social Security Administration.

There are lots of ways to shop for life insurance. You might start with the company that provides your auto, renters or homeowners insurance. Or you might go online to well-known insurance company websites, or one of the many sites that provide multiple quotes.

The industry-sponsored site lifehappens.org offers useful basic information, from an insurance company perspective.

Before you buy a policy, make sure the company you choose has a solid financial rating, an "A" rating or better, because you want some confidence that they'll be around in the future to make good on any claims. Websites such as insure.com make it easy to compare ratings.

September is Life Insurance Month, but any month is a good time to make sure the people who depend on you financially would be taken care of if calamity were to strike.

Reach David Slade at 937-5552 or dslade@postandcourier.com.