“Should I show my clients Life Insurance for their children?”
I get this question more often than you would think. It is usually accompanied by an advisor telling me that they don’t feel comfortable discussing Life Insurance on children with their clients because, why should anyone profit off their child’s passing?
My answer is always the same: Life insurance on children is important, but its more important for the parents to have it on themselves.
At the Passover Seder this year I think I may have changed my mind.
For those unaware, the story of Passover is about the Israelites attaining freedom from the Egyptians after hundreds of years of slavery. As you can imagine, the Egyptian Pharaoh was not too keen on letting all of his free labor just walk out the door.
The Israelites had a trick up their sleeve. God was on their side.
With Moses as his spokesman, God rained down all sorts of plagues on the Egyptians. However, it wasn’t until the last one – Death of the firstborn – that Pharaoh had finally seen enough.
The loss of his son was too much to bear so he finally acquiesced and told the Israelites to leave. They complied hastily but it wasn’t long before pharaoh changed his mind and led his armies after them.
The Israelites found themselves stuck between the Red Sea and the entirety of the Egyptian army. Once again, God comes the rescue and parts the Red Sea for them. When the pharaoh and the Egyptians follow, they are swallowed whole.
My epiphany at the Seder while reading this story? What if pharaoh had purchased Life Insurance on his son?
The coverage might have offered him some time to mourn properly. It might have given him some Capital to aid in funding the cities that the slaves had been building. Unfortunately, he had no coverage, and in his rage, he pursued the Israelites and got himself and his army killed in the process.
If something awful were to happen to one of your client’s children, it would not likely lead them on a suicide mission, but it would certainly turn their world upside down. They might not be ready to go back to work, they may want to move away from certain memories, they may want to start a charity in their child’s memory, etc.
Having some financial stability and liquidity can help with the grieving process.
So, no, no one wants to profit off if the death of a child. However, coverage can give clients piece of mind that should they ever find themselves in that terrible scenario, they would be able to mourn properly, and not just run blindly into their own Red Sea.