My firm was contacted by a recently widowed woman.  She and her husband had always lived well and seemed to have no money problems.  Immediately after her husband's death, she discovered that he had been borrowing huge amounts of money through credit cards, equity lines of credit and personal loans.

The extent of the borrowing was sufficient to bankrupt the estate.  More was owed than the combined value of all of the assets.  This even applied to the family home that was leveraged beyond the current market value of the residence.

This woman was facing an enormous debt load and unaffordable monthly payments.  She had been helping her children with their health benefits and other expenses, and was facing the inability to continue that assistance as well.

The thought of giving up her home, facing creditors and trying to earn a living was frightening, and she was in a state of desperation.  Then we discovered that her husband had retained one of the most overlooked, and invaluable assets available: life insurance.

Her husband was a spendthrift, but he realized that he had a health condition that would impair his ability to obtain life insurance all of his life.  He took every opportunity he could to obtain life insurance, and made sure that the premiums were paid, no matter other expenses there were.

This in not a fictitious story, it is unfolding at the present time.  The first life insurance benefit check has been received, and the woman is able to pay current obligations Soon. the remaining proceeds will be paid and she will be able to restructure her life and not face financial ruin.

As unpleasant a subject as it is, life insurance needs to be a part of every family or businesses succession plan.  If there is no succession plan, there needs to be. Who wants to leave those they care about in a potentially ruinous state?

Take the time and devote the thought to the financial impact of your demise.  It's an invaluable exercise.