It’s probably never a good time to spend money unnecessarily. But sometimes, if you look at the big picture you might change your mind about what is necessary and what isn’t.

Your outlook reminds me about two friends who were born within months of each other and became very close throughout their life. They grew up in a middle class neighborhood. Their parents had houses near each other and had even managed to got pretty good rates on their thirty year mortgages.

Their families were neither small nor large. Each of the friends had two younger siblings. And even though both their parents worked, they were managed to have the weekends off.

Once the friends reached their mid-teens they became responsible for the well being of their younger brothers and sisters while their parents were at work.

When the weather was warm the families used to go on picnics together. They would barbeque in their backyards, and even go on an occasional vacation with each other. Since they lived in the northeast, when the weather turned cold they sometimes even went skiing together.

One day a new neighbor moved in. Turns out he was a life insurance agent. Being good neighbors, they invited their new neighbor and his family to one of their barbecues.

As you could imagine, one thing led to another, soon everyone agreed to meet with their new neighbor to talk about insurance.

And this is where their stories take different paths. One of the families bought life insurance. The other, for whatever reason, did not.

Life continued to be good for awhile.

But life is not always kind. And one thing is certain and that is that things change.

One terrible night one of their dad’s, who was in seemingly good health, had a heart attack while he was driving home from work. He skidded off the road and ran into a tree. By the time the ambulance arrived it was too late.

Both families were grief stricken.

And two weeks later the other dad’s appendix burst. And, even in this day and age, he passed away.

Both of the widows and their three kids walked around in a daze for months.

None-the-less, the family that bought life insurance was able to pay their mortgage. The kids all eventually went to college and raised families of their own.

The family that didn’t own any life insurance lost their house. They moved to a different neighborhood where the rent was very low. Even then, life was very tough.

Their savings ran out. The eldest child had to quit school and go to work to try to help support their mom and their younger siblings.

Sometimes the two childhood friends lie awake at night and wonder how things might have been if both of their families had invested in life insurance.

Life gives us all twists and turns that we have to deal with. With that in mind, I think you’ll agree that you should at least reconsider your point of view – for the sake of your family.

Mike

That wasn’t the case for Sarwara Faruqu. Her family had to fight tooth and nails to get her life insurance after she died from a 9  month battle with colon cancer. She worked 7 years for 7-11 and paid into a life insurance policy offered by 7-11 for 7 years.

The family went to Good Morning America who contacted 7-11 and soon after, the family got its money. Props to GMA for doing something so great for this family, and grr at -11 for trying to skip out.

I thought the idea was interesting, but they did caution you to check into all aspect of such a donation before you consider it – this means talking with a tax advisor about your options and making sure you’re doing everything by the books. Click the link above to read more about this truly creative alternative to charitable giving.