Life Insurance: Financial Rescue for a Mom with Leukemia

April 30, 2024 Insurance Success Stories

“I was about to cancel my life insurance because I needed to cut expenses at home, but I never imagined that fate had other plans for me.”

Rosario, a lady living in Texas, called us in 2022 interested in a life insurance policy. We advised her, and since then, she had her policy. However, years later, we received a call where Rosario expressed her desire to cancel her life insurance policy, influenced by her daughter’s discomfort, who had a bad experience with her health insurance policy, and according to them, policies were worthless.

Her daughter’s experience was something that could happen to anyone if we are not well-informed. Rosario’s daughter had to pay a high sum of ‘Out of Pocket’ money, and she was unaware.

The problem arose with her daughter’s health insurance, related to her son, who has Down syndrome and attends a special school. It turns out that health insurance policies involve an annual maximum expense, known as “Out of Pocket,” which the client must fully cover before the insurance covers all expenses. In this case, the child’s maximum limit was $9,000, but due to a communication error, Rosario’s daughter believed it was $1,800.

This situation triggered a reaction in the family, who, as an act of protest, wanted to cancel the life insurance policies. After extensive efforts by our insurance agency, where we explained how a health insurance policy works, the reason why her daughter had to pay this high sum of money as ‘Out of Pocket,’ Rosario changed her mind and kept her life insurance policy with us. We asked her for an additional opportunity to demonstrate that we were committed to providing quality service and that we were striving to resolve any inconvenience that might arise.

Despite this setback, Rosario’s daughter did not cancel her health insurance or her life insurance. Before renewing her medical insurance, she explored other options, but she concluded that our service was excellent and that, despite the challenges, she trusted our agency to continue protecting her family. Therefore, we are currently responsible for their protection and well-being.

Months later, Rosario contacted us again. Unfortunately, life has unexpected twists, and Rosario, after two years of being the holder of her life insurance policy, was diagnosed with leukemia: cancer in the blood. In the midst of anguish and uncertainty, she remembered that her life insurance policy included benefits in case of serious illness, such as cancer. With a heavy heart, she confided in us about her situation, and we proceeded to process her claim with the insurance company to make her policy effective.

Leukemia: Blood Cancer

Leukemia: Blood Cancer

The process was arduous and meticulous. Rosario collected hospital reports, medical details of the diagnosis, and diagnostic test evidence. After three months of waiting, we received the response from the insurance company. Rosario had coverage of $500,000 with a 10-year term policy. The insurer offered her two options. The first option was that out of those $500,000, $134,000 would be given to her, and the rest would remain in the policy, and the second was to receive a higher sum in exchange for canceling the policy.

Rosario opted for the second option, which involved receiving $283,000 and canceling her life insurance policy. Although the payment process was briefly delayed due to financial concerns, such as the high debt she had with the IRS, she finally received the money in her bank account, tax-free, and without repercussions with the IRS.

During this period, Rosario experienced anxiety related to an old debt of $163,000 with the IRS. She feared that the money deposited in her bank account would be seized to settle this debt, so she wanted to put her daughter’s bank account, but it was not possible because this account had to be her own. Despite her concerns, it was confirmed that the money received was tax-exempt and not subject to seizure, which relieved her worries.

During the claims process with the insurance company, Rosario was admitted to the hospital, fell into a coma, and faced significant physical challenges. However, her determination prevailed, and after a period of rehabilitation, she was finally able to establish her own bank account and receive the corresponding payment.

With the money received after making her life insurance policy effective and the limitations imposed by her illness, Rosario now lives in a new landscape. However, her experience serves as a reminder of the vital importance of having a life insurance policy, always bearing in mind that any eventuality can occur at any moment in life, and we must be prepared.

This story not only impacted Rosario, but also her family, who now recognize the need to maintain their own financial protection through life insurance policies. Thus, we conclude that, amidst adversities, having financial backing can make a difference in people’s lives.

In this journey of life, financial planning plays an important role in protecting our well-being and that of our loved ones. Among the most important tools in this planning is life insurance, a key piece to ensure economic security in the event of unforeseen events.

Why is it important to have Life Insurance?

Life insurance is much more than just a policy; it is a financial shield that offers protection and peace of mind to those we love most. Here are some reasons why you should consider purchasing life insurance:

  • Financial protection: It is proven that life insurance is not effective only at the time of death. Life insurance provides the economic tranquility you need in case of a serious illness that leaves you out of the workforce, and without the ability to be economically productive.
  • Peace of mind and tranquility: Knowing that your loved ones will be financially protected in case of your absence provides invaluable peace of mind. This certainty allows you to live with tranquility, knowing that your loved ones will be able to maintain their standard of living and achieve their financial goals, even in your absence.
  • Coverage for future expenses: Life insurance can also help cover future expenses, such as children’s education, dependent care, or the retirement of the surviving spouse. Planning ahead ensures long-term financial stability and protects the well-being of the entire family in all stages of life. Depending on the type of policy, you don’t need to become seriously ill or die to receive money from your policy.
  • Benefits for all ages: Contrary to popular belief, a life insurance policy is not exclusive to older people or those with dependent family members. Even young people can benefit as it provides financial protection in case of serious accidents or terminal illnesses. Policies are often used as a tool to plan for the education of family members.
  • Variety of coverage options: In the current market, there are various types of life insurance, each with unique characteristics and benefits. From term insurance to IUL policies. The choice of insurance type will depend on your individual needs and circumstances.

Importance of choosing the right Insurance Agency

When purchasing life insurance, it is essential to select a reliable and experienced insurance agency that provides professional advice and flexible coverage options. In this regard, our agency stands out as a reliable option, committed to excellence in customer service and focused on personalized insurance solutions that meet your specific needs.

With a team of insurance experts, we offer a personalized approach and tailor-made solutions to ensure the financial protection of Hispanic families in all stages of life.

In summary,

Life insurance is an essential tool in your family’s financial planning, providing security, stability, and peace of mind to individuals and their loved ones. By purchasing life insurance with a reliable insurance agency, you can ensure a solid economic future and protect the well-being of your loved ones, no matter what the future holds.