How the Martinez Family Protected Their Future: A Term Life Insurance Case Study
Real Stories of Financial Planning During Life’s Biggest Transitions
December is often a time when families pause to reflect on the past year and plan for the next. For many, this includes reviewing financial goals, assessing household budgets, and considering how to better protect the ones they love. The Martinez family’s experience working with Xpress Benefits offers valuable insights into how proactive planning and expert guidance can provide both financial security and peace of mind during uncertain times.
Meet the Martinez Family: The Starting Point
Carlos and Jennifer Martinez had been married for six years when they first started seriously thinking about life insurance. Carlos, 34, worked as an operations manager earning a solid income, while Jennifer, 32, had recently returned to part-time work after the birth of their second child. Their household brought in approximately $95,000 per year combined.
Like many young families, the Martinez’s were managing multiple financial priorities simultaneously. They had recently purchased their first home with a $340,000 mortgage, celebrated the arrival of their youngest child Miguel (18 months), and were managing the everyday costs of raising their daughter Sofia (4 years old). Beyond a modest emergency fund of about $15,000, they had limited savings.
Carlos had a $50,000 life insurance policy through his employer, but the couple hadn’t given much thought to whether this coverage was adequate. Jennifer had no life insurance coverage at all. Both were young, healthy, and focused on the immediate demands of work, parenting, and homeownership.
The Wake-Up Call
Everything changed when Carlos’s colleague, a 38-year-old father of three, passed away unexpectedly from a sudden cardiac event. Carlos attended the funeral and witnessed firsthand the devastating financial impact on his colleague’s family. The employer-provided life insurance covered funeral expenses and bought the family a few months to adjust, but it wasn’t nearly enough to replace years of lost income or protect the family’s home.
The experience shook Carlos deeply. “What happens to my family if something happens to me?” became a question he couldn’t ignore. He realized that his own $50,000 employer policy would barely make a dent in his family’s actual financial needs. More concerning, if something happened to Jennifer, they would face enormous childcare costs that would strain their budget significantly.
That conversation at the dinner table led the Martinez family to start exploring their options.
The Discovery Process: Understanding Term Life Insurance
Initial Research and Misconceptions
Like many people encountering life insurance for the first time beyond an employer plan, Carlos and Jennifer held several common misconceptions:
- “Life insurance is too expensive for our budget.” They assumed comprehensive coverage would cost hundreds of dollars per month.
- “We’re young and healthy, we can wait.” They figured they had plenty of time to address this later.
- “My work policy is probably enough.” Carlos believed his employer coverage provided adequate protection.
As they began researching online, they quickly felt overwhelmed by the options, terminology, and conflicting information. A colleague mentioned that Xpress Benefits had helped his family with life insurance planning, so Carlos reached out to schedule a consultation.
Meeting with Xpress Benefits
In early January, the Martinez family met with Jeremy McMillan, a licensed insurance agent with Xpress Benefits, for a no-obligation consultation. Jeremy took time to understand their specific situation, explained the difference between term life insurance and permanent life insurance, and helped them understand what “enough” coverage actually meant for their family.
An insurance agent will contact you if you request information about coverage options.
They learned that term life insurance provides coverage for a specific period—typically 10, 20, or 30 years—and is designed for temporary needs like mortgage protection and income replacement during working years. Unlike whole life insurance, term life doesn’t build cash value, which keeps premiums significantly lower and makes it ideal for young families who need maximum protection at an affordable price.
Calculating Their Actual Coverage Needs
Jeremy walked the Martinez family through a comprehensive needs assessment that opened their eyes to how much protection they actually required:
Mortgage Balance: $340,000 remaining on their home loan
Income Replacement: Approximately $650,000 (representing 10 years of Carlos’s salary to support the family through the children’s school years)
Children’s Education Fund: $100,000 estimated for two children’s college education
Final Expenses and Outstanding Debt: $30,000 for funeral costs, car loans, and credit cards
Total Estimated Need: Approximately $1,100,000
The number seemed staggering at first. But Jeremy explained that this represented the family’s actual financial exposure—what Jennifer and the children would need if Carlos passed away unexpectedly.
For Jennifer’s coverage, they calculated differently. While she earned less income working part-time, her contribution to the household was substantial. If something happened to her, Carlos would need to pay for full-time childcare, housekeeping, and other services Jennifer currently provided. They estimated her economic value at approximately $250,000.
The Coverage Recommendation
Based on their needs assessment, Jeremy recommended:
- Carlos: $1,000,000 20-year term life insurance policy
- Jennifer: $250,000 20-year term life insurance policy
The 20-year term would provide coverage until both children reached adulthood and the mortgage was substantially paid down. At that point, their financial vulnerability would be significantly reduced.
The Solution: Making Protection Affordable
The Premium Quotes
When the Martinez family received their quotes, they were pleasantly surprised:
- Carlos’s $1,000,000 policy: Approximately $55 per month
- Jennifer’s $250,000 policy: Approximately $25 per month
- Combined monthly investment: $80 per month
Carlos put this in perspective: “We spend more than that on streaming services and subscription boxes we barely use.”
The couple realized that $80 per month was equivalent to eating out twice or buying coffee on their way to work a few times per week. When weighed against the potential financial devastation their family could face, the decision became clear.
The Application Process
Both Carlos and Jennifer completed applications that included health questionnaires and brief medical examinations. Applications contain certain health questions to help insurers assess risk and determine premiums.
Because both were young, healthy non-smokers, their applications were approved within three weeks with preferred rates. Their policies went into effect in February.
Implementation and Budget Adjustment
The Martinez family made small but meaningful adjustments to accommodate the $80 monthly premium:
- Set up automatic monthly payments from their checking account to ensure coverage never lapsed
- Reduced their dining out budget by $80 per month—a change they barely noticed
- Updated beneficiaries carefully, including contingent beneficiaries (their siblings) in case of simultaneous death
- Stored policy documents in their fireproof safe and informed family members of the coverage
- Reviewed their estate planning documents to ensure everything aligned
No significant lifestyle changes were required. The peace of mind they gained was worth far more than the minor sacrifice.
The Unexpected Test: One Year Later
When Health Issues Arise
Just over a year after purchasing their term life insurance policies, the Martinez family faced an unexpected challenge that validated their decision in a profound way.
In December of the following year, Carlos began experiencing concerning symptoms. After several medical appointments, he was diagnosed with a serious but treatable health condition that required surgery and an extended recovery period. He would need to reduce his work schedule for approximately three months during treatment and recovery.
The diagnosis was frightening enough on its own. But because they had secured life insurance coverage while Carlos was healthy, the family could focus entirely on his treatment and recovery rather than scrambling to get coverage while facing a serious diagnosis.
Why Timing Mattered
The Martinez family’s experience illustrates a critical truth about life insurance: it’s nearly impossible to get coverage when you need it most.
If Carlos had waited to purchase life insurance until after his diagnosis:
- He likely would have been declined coverage or faced substantially higher premiums
- He might have been offered coverage with exclusions for his condition
- The stress of being uninsurable would have compounded an already difficult situation
Instead, their children’s financial future was already protected. Jennifer increased her work hours temporarily to help bridge the income gap during Carlos’s reduced schedule, and the family remained financially stable throughout the ordeal.
“We never thought we’d be so grateful for insurance we hoped we’d never need,” Jennifer reflected. “But knowing our kids were protected, no matter what happened, let us focus on Carlos getting better instead of panicking about money.”
The Outcome
Fortunately, Carlos made a full recovery. The family’s financial stability never wavered, thanks to careful planning, Jennifer’s increased work hours, and their emergency fund. But the experience left them with a profound appreciation for the decision they’d made while they were both healthy.
Lessons Learned: Key Takeaways for Other Families
Looking back on their experience, the Martinez family wants other families to understand several important principles:
1. Act While You’re Healthy
Life insurance premiums are based largely on your age and health status at the time of application. Waiting until you’re older or until health issues emerge will cost significantly more—or may make coverage impossible to obtain. The best time to get life insurance is when you don’t think you need it yet.
2. It’s More Affordable Than You Think
Term life insurance is specifically designed for families with temporary needs and working budgets. The Martinez family discovered that comprehensive protection cost less than many of their discretionary expenses. The key is prioritizing this protection alongside other financial goals.
3. Cover Both Spouses
Even a spouse who earns less income or stays home provides tremendous economic value through childcare, household management, and family support. Losing this contribution would create real costs that the surviving spouse would need to cover. Both partners deserve protection.
4. Don’t Rely Solely on Employer Coverage
Employer-provided life insurance is a valuable benefit, but it’s often insufficient for a family’s actual needs. Additionally, this coverage typically ends when you change jobs or retire, leaving you unprotected during crucial years. Personal term life insurance provides portability and adequate protection.
5. Review Your Coverage Regularly
As your mortgage decreases, your children grow older, and your financial situation evolves, your life insurance needs will change. The Martinez family now reviews their coverage annually with the Xpress Benefits team to ensure it still aligns with their needs. Jeremy checks in with them each year during benefits enrollment season to discuss any life changes or adjustments.
Their Current Status
Today, both Carlos and Jennifer’s term life insurance policies remain in force. They continue to pay the same monthly premiums they started with, locked in at the rates they received as healthy 34 and 32-year-olds. As they approach the midpoint of their 20-year terms, they plan to reassess their needs with Jeremy at Xpress Benefits—their mortgage will be substantially lower, and their children will be approaching college age.
The couple has referred three friends to Jeremy and the Xpress Benefits team. Each of those families also purchased term life insurance to protect their loved ones. For the Martinez family, the decision to work with Xpress Benefits when they did wasn’t just smart financial planning—it provided security during one of the most challenging periods of their lives.
Your Family’s Story: What Comes Next?
The Martinez family’s experience with Xpress Benefits illustrates how term life insurance can provide affordable protection during your most financially vulnerable years. Their proactive approach, guided by Jeremy McMillan’s expertise, ensured that when unexpected health challenges arose, their family’s financial security remained intact.
Every family’s situation is unique, with different coverage needs, budget considerations, health circumstances, and financial goals. There’s no one-size-fits-all answer to how much coverage you need or which type of policy is right for you.
If you’re wondering whether term life insurance makes sense for your family, the Xpress Benefits team invites you to have a conversation about your specific circumstances. A personalized needs assessment can help you understand your actual coverage requirements and explore affordable options that fit your budget.
Contact Us To Discuss Your Life Insurance Options
Our team specializes in working with families to walk them through their options and put together a plan that is best suited to their financial needs. Get the process started by scheduling a call with us.