As a third-generation dairy farmer, Paul Krzewina’s priority was keeping his 585-acre farm in the family. But doing that meant modernizing, and Paul needed to take out a mortgage to build new barns and buy additional cows. He was concerned, though, that the mortgage would be a burden to his wife, Michele, and their four young children if something were to happen to him. Donald Blahnik, LUTCF, their insurance agent, shared that concern and helped Paul buy a term life insurance policy, the only coverage he felt he could afford at the time.
Years later, with his children nearing adulthood and retirement within sight, Donald suggested that Paul consider converting the term policy to a whole life policy. Paul still needed to protect the next generation, and he liked the idea of accumulating cash values to supplement his retirement savings.
When Paul was diagnosed with a brain tumor three years later, the life insurance proved invaluable. He was able to use a loan against his policy’s cash values to pay his health insurance deductible.* In addition, Paul didn’t have to worry about keeping his policy in force because of a provision that waived his premiums in the event of a disability.
Paul died in 2010, but his dreams for his family are very much alive today. His eldest son, Chad, 28, now runs the farm, and used part of the death benefit to add new barns, including a maternity barn. He plans to expand the operation to 500 cows, from the current 200. Michele works on the farm, too, though in the warmer months her attention is on her ice cream restaurant, The Iceburg. “We couldn’t have done any of these things without the insurance money,” Michele says.