I remember when my father went to visit a doctor who had not been our family physician, I was worried that he was seriously ill, until he explained that it was only an “insurance doctor.”
He had recently been promoted to managing director at his work, and his company policy dictated that all executive managers had to carry life insurance. I naively thought it to be a nice gesture, until I learned that the beneficiary of the policy was the company, not my dad and his family.
Why would a company take out a life insurance policy on its employees?
“It’s good business practice,” explained my dad. He was responsible for the entire operation of the company, and if he were to die, it would be difficult to find a person with his background and experience to replace him. The company could find itself in a position where it might lose money. The job search alone would be expensive and time consuming, and in the meantime, the company had to keep running.
Although my father was cheerful in our conversation, it began nagging thoughts about what would happen to us if he really were to die. This was the first time that these unnerving thoughts entered my mind. As a youngster, I thought my parents would always be there. I didn’t think about illness or accidents; they happened to other people.
Years later when I became a parent myself, I saw the value of life insurance to protect my family. Even as an adult, we don’t like to confront our own mortality. It’s easier to brush it aside and live in “fool’s paradise.” However, if you stop and think about it just for a minute, you’ll be convinced that life insurance for most people should be a high priority.
