No Life Insurance? No iPhone!

               I know, I know.  What in the world could this post have to do with filing bankruptcy in Indiana?  The answer to that question is plenty.  As a bankruptcy attorney at Halcomb Singler, LLP, I go over the expenses of each one of my clients with them in order to properly advise them about bankruptcy.  One thing that I notice over and over again is that very few people have life insurance policies that would be adequate to support their families.  Many people have an insurance policy through work that would cover funeral expenses, but few people I meet with at Halcomb Singler, LLP, have any other life insurance.  However, many of those same people spend money on getting their nails done, professional highlights at expensive salons....and, of course, every NEEDS an iPhone.

               I am not saying that no one should ever have an iPhone.  However, I am saying that you should only have an iPhone if you have the other things in life that are necessitates covered.  For most people, life insurance should be looked at as a necessity.  However, many people chose to spend their money on the "latest and greatest" electronic or entertainment rather than life insurance.  I find this sad. To me this says that person cares more about stuff than his or her family's well begin should he or she pass away.  For example, in a family of 4 where the father works full time in sales and is gone during the week and the wife stays home to manage the home and the 2 children what would happen if either parent died without adequate life insurance?  If the father dies with only enough life insurance to get him in the ground it looks like it is time for the family to move.  Time for mom to get a job or a new husband asap.  This may seem a bit dramatic, but for a mom who hasn't worked in many years to go out and get a job that can keep the family in the same home is unrealistic for most people.  Not only does the mom have the disadvantage of having been out of the workforce for years, but now she is going to have to pay someone else for child care.

              In the example above, many people make the mistake of thinking that the mom doesn't need life insurance because she isn't working and doesn't bring any financial gain to the family.  On the contrary, mom is caring for the children.  If mom passed away then dad could only continue to work and earn money if he is paying money for someone to take care of the kids.

              Another scenario that comes to mind is that of the single mom.  Single moms need life insurance to leave to their children in the event of passing.  It is best that a guardian has been designated and that the money is left in trust to the guardian for the benefit of the child, but that goes beyond the scope of this blog into the realm of estate planning.  I know that single moms are often operating on a very tight budget.  However, term life insurance is very affordable and simply must be budgeted for!

             It is not fun to think about these scenarios, but they do happen....and they do result in people having to file for bankruptcy.  I was at a bankruptcy hearing within the past month where the person who filed bankruptcy was a young widow, probably under the age of 40.  The trustee asked that debtor if she was entitled to any life insurance from the passing of her late husband.  The debtor started to tear up when answering that she had not received any life insurance money.

            Let me remind you that I don't sell life insurance.  I have nothing to gain from people buying life insurance.  But it saddens me to sit with people day after day who are simply very financially vulnerable in the event of death.  I wanted to blog on this topic because it is yet another example of how many American's spending decisions are out of whack.  Americans will spend money on cable television and iPhones and not make sure the family is taken care of should there be an unexpected passing.    That is the last way your family should remember you.....as a person who didn't care about their financial well-being and as a person who may have forced bankruptcy as the only solution.

Halcomb Singler, LLP, is a debt relief agency.  It helps people file for bankruptcy under the bankruptcy code.  No attorney-client relationship with the firm of Halcomb Singler, LLP, is created through this blog. Also, please note that Erika Singler is an attorney licensed in Indiana and does not seek to practice law in any jurisdiction in which they are not properly authorized to do so.  The information contained in this blog is general in nature and should not be relied upon for the circumstances of any individual(s) or businesses.