The Single Decision That Kept Ron’s Family Together

Ron fell in love with Kelly at first sight, and they spent the first years of their marriage building a responsible financial future for their family. Then, the bottom dropped out.

As the years passed, Ron and Kelly were faced with a multitude of challenges. Ron experienced a back injury, forcing him into early retirement from his construction career. To keep the bills paid, Kelly took over the family finances and began pursuing her real estate license. When Kelly passed away suddenly in 2009, it came as both an emotional and financial shock to Ron and their two children.

“Every day you get up and go to work. Every day you get up and start your car. You take that for granted,” Ron said. “You never take [for] granted something unexpected. When Kelly passed away, it was very unexpected. She was worth everything to us.”

Fortunately, they had someone on their side: Their longtime friend (and insurance agent) Steve. It was now, when things looked their worst, that advice Steve had given years before paid off, enabling Ron to keep his family together.

Investing in the future

Many years before, based on Steve’s counsel, Ron and Kelly had chosen a permanent life insurance plan that accumulated cash value, which had allowed them to fulfill their dream of buying a home and paying for unforeseeable costs, like Ron’s medical bills.

But because of his health problems and the state of the economy in 2009, when Kelly had become the primary wage-earner in the family, finances were so tight that Ron told Kelly that he thought they should cancel their life insurance policy. They met with Steve again, who took the time to walk through their financial options and encouraged them to consider keeping their policy.

“The real lightbulb moment was when Ron realized how much Kelly really did for him and the household and family, and the fact that she did bring in income that he would have to do without if something should happen to her,” said Steve.

For most Americans, the death of a primary wage-earner would mean big living changes. According to LIMRA’s life insurance consumer studies, one-third of Americans believe they would feel the financial impact from the loss of a primary wage earner within one month of the wage earner’s passing. Half say they would feel an impact within six months.

After loss, some relief

Ron was in the group that would feel the impact immediately, and he feared what it could mean for his family. “With Emmet being a minor and Jamie just getting out of school and my serious back problems the last year that Kelly was alive, I’m afraid to think of what would have happened to all of us without our life insurance policy,” said Ron.

In the wake of Kelly’s death, Ron had to take over financial responsibility for the household. He reached out to Steve again, who reminded him they had kept their life insurance policy. In fact, he told Ron, they had actually increased their coverage, a decision that provided the necessary funds for Ron to remain with his sons and keep his home.

“It was a great relief when Steve told me we weren’t going to lose our house, and I was going to be able to stay here with the boys,” said Ron, “[Without insurance] I would have had to instantly liquidate everything or look to my relatives for help. Life insurance takes care of that unexpected stuff.”

State Farm Life Insurance Company (Not licensed in MA, NY or WI) State Farm Life and Accident Assurance Company (Licensed in NY and WI) Bloomington, IL LIAM-1009.0