Insurance Case Study: Married with One Income and Two Children - United Benefits

Meet Conner and Liz, a couple in their early 40s, happily married with two young children. Conner is the sole income earner, bringing home $80,000 per year, while Liz has chosen to be a stay-at-home mom, dedicating her time to taking care of their kids. With average living expenses, and through careful budgeting and saving, they manage to create a comfortable life for their family.

What happens if Conner and Liz don’t have insurance?

One unfortunate day, Conner is involved in a car accident and suffers severe injuries, which require a six-month recovery period, thereby stopping his work. The financial burden of medical bills combined with the loss of income creates an enormous strain on the family’s finances. Conner and Liz’s savings quickly deplete, and they struggle to maintain their lifestyle and meet their children’s needs.

Given the circumstances, Liz decides to re-enter the workforce. However, this decision brings additional challenges. With Liz’s long hiatus from professional life, finding a job that would match Conner’s income is a daunting task. Eventually, she lands a job, but it pays far less than what Conner used to bring home.

Additionally, with Liz now working, childcare becomes another significant concern. The cost of professional childcare is high and would further strain their tight budget. Liz and Conner decide to turn to their family members to watch the children. The situation takes an emotional toll on the entire family, from the concerned grandparents to the confused children, exacerbating the strain caused by Conner’s accident.

What insurance could Conner and Liz have taken out?

Protecting Your Paycheck

As the sole earner, Conner could have taken out short-term disability insurance. This insurance would replace a percentage of his income during his recovery period, helping to maintain the family’s financial stability.

In addition, Conner could have considered supplemental accident insurance. This policy would cover out-of-pocket medical costs related to the accident that aren’t typically covered by health insurance, including copayments, deductibles, and non-medical expenses like transportation for medical visits.

Protecting Your Life

Given their family situation, life insurance is crucial for Conner and Liz. They could consider term life insurance, which would provide financial protection for a set term. However, whole life or universal life insurance could offer additional benefits. These permanent life insurance options not only ensure a death benefit for the beneficiaries but also accrue cash value over time, providing a potential financial resource that can be used during their lifetime.

If anything were to happen to Conner, his whole or universal life insurance policy would provide financial security for Liz and their children. It could also serve as a financial safety net that could be tapped into during financial emergencies or even utilized for planned events such as the children’s college education.

What if Conner and Liz had had insurance?

With insurance, Conner and Liz’s story unfolds quite differently. With the right insurance policies, the financial impact of Conner’s accident would have been significantly mitigated.

Their disability insurance would replace a portion of Conner’s income during his recovery. This would help cover their living expenses without depleting their savings or forcing Liz to return to the workforce. Liz could continue to care for their children and support Conner without the added pressure of balancing a new job.

Their supplemental accident insurance would come into play as well, easing the financial burden of Conner’s medical costs. This could include not just hospital bills, but also the associated expenses like transportation to and from medical facilities for Conner’s treatments and check-ups.

Moreover, the peace of mind provided by Conner’s life insurance policy cannot be overstated. While thankfully not needed in this scenario, just knowing that the family’s future would remain secure even in his absence would provide significant emotional comfort for Liz and their children during such a challenging time.

Securing Your Family’s Future

You may find similarities between your family’s situation and Conner and Liz’s. Whether your situation mirrors theirs or is entirely different, United Benefits Specialists are here to assist. Contact us today for a free one-on-one consultation. Let us help you secure the best insurance solutions tailored for your family’s unique needs.

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