Growing up in Jalisco, Mexico, I didn’t hear much about financial planning. My parents worked hard, and family always came first, but we lived day-to-day, relying on faith and resilience to get by. The concept of life insurance was foreign to us. It wasn’t until I moved to the U.S. and started my own family that I began to understand the importance of preparing for the unexpected.
Then tragedy struck someone close to us. It was an event that forever changed how I think about money, responsibility, and protecting the people I love most. That’s when I realized that life insurance isn’t just a financial tool—it’s an act of love.
My Family’s Wake-Up Call
One Saturday morning, while I was making tamales in the kitchen, Carlos, my husband, got a phone call. His best friend Marco had been in a car accident on his way to work. Marco didn’t survive.
Marco was more than a friend—he was family. He and his wife, Ana, were the godparents to our youngest daughter. We spent countless weekends together, laughing over carne asada and dreaming about the futures of our kids. Marco was just 42 years old, with two young daughters and a wife who had been out of the workforce for years. None of us imagined he wouldn’t be there to see those dreams come true.
In the weeks that followed, I watched Ana struggle—not just emotionally, but financially. Marco had been the sole provider, and without life insurance, Ana had no way to cover the mortgage or basic living expenses. She ended up moving in with her parents and selling Marco’s truck just to make ends meet.
That could have been us. That’s all I could think about as I sat with Carlos that night. “We need to talk about life insurance,” I told him. “What would happen to us if something like that happened to you—or me?” Carlos, like many people, hesitated. “We’re fine,” he said. “Nothing’s going to happen.” But I couldn’t let it go.
Breaking the Silence About Life Insurance
In our culture, talking about death is often considered bad luck. My mother still shakes her head whenever I bring up life insurance, saying, “Why are you thinking about these things? You’re young. You’re healthy.”
But avoiding the conversation doesn’t make the risks go away. I explained to Carlos—and later to my mom—that life insurance isn’t about expecting bad things to happen. It’s about making sure your family is taken care of, no matter what. It’s about giving your loved ones the stability they need to move forward.
I knew that talking about life insurance would be uncomfortable, but I also knew it was one of the most responsible things we could do as parents. If something happened to either of us, I wanted to be sure our kids could stay in their home, finish school, and have the future we dreamed of for them.
How We Chose the Right Policy
Once we agreed to move forward, the next challenge was figuring out what kind of life insurance to buy. The options felt overwhelming: term vs. whole life, riders, premiums. But with a little research—and a lot of questions—we found a policy that worked for us.
We chose a term life insurance policy for 20 years. It was affordable, and it covered us during the time we needed it most: while our kids were still young and we were paying off our mortgage. The premiums were manageable, and the coverage amount—10 times our annual income—gave us peace of mind.
Here’s what helped us make the decision:
- Calculate Your Needs: We considered our mortgage, the kids’ college costs, and everyday expenses like groceries and utilities.
- Compare Providers: We didn’t just go with the first quote. Shopping around saved us nearly $25 a month.
- Ask Questions: We added a critical illness rider, which meant we’d get a payout if either of us faced a serious health issue.
- Read the Fine Print: One policy we looked at excluded certain types of accidents, which could have been a dealbreaker.
The Emotional Impact of Life Insurance
The day we signed the policy, Carlos said something I’ll never forget: “Now I can sleep at night.” It wasn’t just about the money; it was about knowing that, no matter what, our family would be okay.
I often think about Ana and what she went through after Marco’s death. Her grief was compounded by the stress of figuring out how to pay the bills and keep her kids in school. Having life insurance doesn’t erase the pain of loss, but it can ease the burden for the people left behind.
Life Insurance as an Act of Love
In Mexican culture, family is at the center of everything we do. We help each other, whether it’s organizing a quinceañera or pulling together money for a family member in need. For me, buying life insurance was an extension of that value. It was a way of saying, “I will take care of you, no matter what.”
When I explained this to my mom, she finally understood. Now, at 68 years old, she’s considering a small policy for herself and my dad. “Es una forma de proteger a la familia,” she said. (It’s a way to protect the family.)
Practical Tips for Getting Started
If you’ve been putting off life insurance, here’s my advice:
- Start Small: If you can’t afford a large policy, start with one that covers funeral costs and add more coverage later.
- Use Online Tools: Many websites have calculators to help you estimate how much coverage you need.
- Speak with an Agent: A good agent can explain your options and help you choose the right policy.
- Review Annually: As your life changes—new jobs, kids, or debts—update your policy to match your needs.
Next in my Life Insurance journey
After securing my family’s life insurance policy, I thought the hardest part was over. Little did I know, the journey didn’t end with signing the paperwork. From learning how to manage and update our policy to understanding how it fits into our overall financial plan, I’ve discovered there’s still a lot to navigate. In this follow-up, I want to share the lessons I’ve learned since taking that critical first step.
Whether you’ve already purchased life insurance or are still weighing your options, this deeper dive will help you make the most of your decision and ensure your family’s future is fully protected.
Life Insurance Isn’t “Set It and Forget It”
One of the biggest mistakes I almost made was assuming that once we had our policy, we were done. But just like life itself, financial needs evolve. Our kids grew older, we paid off some debt, and Carlos even started a side business. Suddenly, our initial term life insurance policy didn’t seem like enough to cover all our bases.
Here’s what I realized: your life insurance policy is not a one-time decision. It’s a tool that needs regular maintenance to stay effective.
How to Keep Your Policy Updated:
- Reassess Your Coverage Annually: Every year, I sit down with Carlos and review our financial situation. Are we earning more? Did we take on new debts? Do we need more coverage?
- Adjust for Major Life Events: When Carlos started his business, we added an additional policy to cover potential business-related expenses.
- Consider Additional Riders: As our kids grew older, I added an education rider to ensure their college costs would be covered no matter what.
Exploring Whole Life Insurance: Our Next Step
When we first purchased term life insurance, it was the right choice for our needs and budget. But as our financial situation improved, I started looking into whole life insurance. Unlike term policies, whole life insurance offers lifelong coverage and builds cash value over time.
I initially hesitated because the premiums were higher, but the long-term benefits made sense for us. By the time Carlos and I retire, the cash value from our policy could supplement our savings or even help fund our kids’ future dreams.
Key Differences Between Term and Whole Life Insurance:
- Term Life Insurance:
- Coverage lasts for a set period (e.g., 20 years).
- Lower premiums, but no cash value.
- Ideal for temporary needs like paying off a mortgage or raising children.
- Whole Life Insurance:
- Lifetime coverage.
- Higher premiums, but builds cash value.
- Can be used as part of an estate plan or retirement strategy.
Teaching Our Kids About Life Insurance
One thing Carlos and I decided early on was that we didn’t want our kids to grow up in the dark about finances. In many Latino households, money isn’t something parents discuss with their children, but we wanted to break that cycle.
When our oldest daughter, Sofia, turned 15, I sat her down and explained why we have life insurance. I told her how it protects our family and why it’s important to prepare for the unexpected. She surprised me by asking thoughtful questions like, “What happens if both of you are gone?” and “Does this mean I won’t have to sell the house?”
These conversations weren’t easy, but they were necessary. I wanted my kids to know that, even if the worst happens, they’ll have the tools and knowledge to move forward.
Busting Myths About Life Insurance
Over the years, I’ve encountered plenty of myths and misconceptions about life insurance, especially within our community. Here are a few I’ve heard—and the truths I’ve learned:
- “Life insurance is too expensive.”
When we first bought our policy, I was surprised at how affordable it was. Many term policies cost less than $50 a month—less than what we spend on streaming subscriptions. - “I don’t need life insurance because I’m young and healthy.”
The younger and healthier you are, the cheaper your premiums will be. Waiting until later can mean paying significantly more. - “Life insurance is only for covering funeral costs.”
While it does help with funeral expenses, it can also cover mortgage payments, education costs, and even provide a financial safety net for your family.
Life Insurance and Long-Term Financial Planning
One thing I didn’t fully appreciate when we first bought life insurance was how it fits into a larger financial strategy. Now, I see it as one piece of a puzzle that includes savings, investments, and retirement planning.
For example, the cash value from a whole life insurance policy can be borrowed against in emergencies. This gave Carlos and me peace of mind, knowing we had another layer of security if things ever got tight.
Here’s how I’ve integrated life insurance into our financial plan:
- Emergency Fund: Our term policy ensures that even in a worst-case scenario, our emergency fund won’t be depleted.
- Retirement Savings: A portion of the cash value from our policy will supplement our retirement income.
- Estate Planning: Our policy ensures that any outstanding debts or expenses won’t burden our kids after we’re gone.
Final Thoughts on Life Insurance
If there’s one thing I’ve learned, it’s that life insurance is more than just a contract—it’s a promise. It’s a way of saying to your loved ones, “I’ve got you, no matter what.”
Whether you’re just starting to think about life insurance or you already have a policy, remember that it’s an ongoing process. Reassess your coverage, explore new options, and don’t be afraid to have those tough conversations with your family.
Because at the end of the day, there’s nothing more important than protecting the people you love.
