Matt Seidholz, a freelance healthcare content writer and journalist from Brooklyn, went through a difficult time when his family lost their home due to foreclosure. This experience led him to make a smart decision that many young people overlook – purchasing life insurance.
While some may think life insurance is something to consider later in life, Seidholz believes it is a valuable investment at any age. He used to focus on saving money and maximizing his earnings, thinking he had plenty of time to plan for the future. However, everything changed when his mother and stepfather discovered they were facing foreclosure.
One evening, upon returning home, Matt Seidholz’s mother and stepfather found a foreclosure notice on their front door. It turned out that his stepfather, who had frontotemporal dementia, had not made any mortgage payments in over three years due to his cognitive decline.
This diagnosis was devastating for Seidholz’s mother and signalled significant financial challenges ahead. However, the family’s situation would have been much worse if his stepfather didn’t have a $1.5 million term life insurance policy. The premiums continued to be paid automatically, ensuring the policy remained active even after the diagnosis.
Seidholz’s mother’s financial advisor suggested using the life insurance policy as collateral to secure a bank loan to cover long-term care costs. This option provided much-needed financial relief and peace of mind for the family during a challenging time.
The experience with his stepfather’s dementia prompted Seidholz to reevaluate the importance of life insurance. He realized that having a policy in place could provide financial security and support in case of unexpected circumstances. This led him to purchase a term life policy for himself to protect his wife in case he ever faced a similar situation.
While frontotemporal dementia is rare, Seidholz recognized the value of having life insurance as a safety net for his family. He opted for a 20-year, $500,000 term life policy, emphasizing the peace of mind it gives him for a relatively small annual cost.
Seidholz’s story highlights the importance of life insurance as a financial tool for security and protection. For couples, Survivorship Life Insurance is an option worth considering, as it covers both individuals under one policy, ensuring stability and support in the face of life’s uncertainties. Through his personal journey, Seidholz learned the true value of life insurance and the peace of mind it can provide in challenging times.
