With a one-year-old running around, we've been steadily working our way through Disney's catalog. A few weeks ago, we landed on Lilo & Stitch, and my wife remarked on how sad the story actually is.
I remembered it mostly as a lighthearted adventure-Lilo and Stitch getting into trouble, building a family, and trying to keep that family together despite Stitch's alien origins. But when you look at it through the lens of a financial planner, the story hits differently. Lilo & Stitch is, in fact, a devastating case study on the importance of life insurance.
What Really Happened to Lilo and Nani
Lilo is a young girl being raised by her older sister, Nani, after their parents die suddenly in a car accident. The heart of the story centers on their fight to stay together as a family, all under the constant pressure of child protective services potentially stepping in. Oh, and there's also an alien, Stitch, who complicates things.
From what we see, it's clear their parents didn't have life insurance, or at least not enough to leave Nani in a stable financial position. She's scrambling to make ends meet, working unstable jobs, and trying to raise her little sister on her own.
Life insurance wouldn't have erased the emotional pain, but it could have offered:
- Breathing room for household and childcare costs
- Help covering the mortgage or rent
- Time and flexibility for Nani to pursue stable work or further education
- Resources for therapy, legal support, or long-term planning
Nani's not a bad guardian-she's just overwhelmed.
What Life Insurance Is (and Isn't)
Life insurance exists for one main reason: to protect your loved ones if you pass away unexpectedly. If someone depends on you or your income, chances are you need life insurance.
Here's what life insurance isn't:
1. A Permanent Need
The first question we ask when evaluating life insurance is simple: Does this person actually need it?
- If you're young, single, and no one relies on your income, you likely don't need life insurance.
- If you're retired and no longer supporting others financially, you probably don't need it either.
2. An Investment Vehicle
Are there life insurance policies with investment features? Yes. Have they worked out for some people? Also yes.
But in most cases, these policies end up being both expensive insurance and underwhelming investments. Some people are drawn to variable life policies because they think they're getting the best of both worlds-protection and market participation.
But variable life insurance is kind of like eating all your meals with a spork. Can you do it? Sure. But if you're eating soup, a spoon's better. And if you're eating steak, you want a fork.
Bottom line: we prefer our life insurance to be life insurance and our investments to be investments.
How Much Life Insurance Do You Need?
That's where planning comes in. Life insurance is part art, part science. Dave Ramsey often recommends 10-12 times your annual income. In most cases, that's more than enough—and it's a solid rule of thumb.
But we encourage clients to go a step further. Either run the numbers through your financial plan or take the time to answer some tough questions about what life would look like for those who rely on your income if you were no longer here:
- Would you want the mortgage or other debts paid off?
- How would your spouse and/or kids cover college costs?
- Do you have aging parents who are dependent on you for support?
- Would your spouse continue working?
- Who would take care of your kids during the day?
- Would your family relocate to be closer to a support network?
- How much income would your life insurance need to generate to support your family?
These are not fun questions, but they're incredibly important. Honest answers lead to real clarity and help us recommend the right amount of coverage.
Ohana means family. Family means no one gets left behind—or left uninsured.
Rob Clark, CFP®, is a CERTIFIED FINANCIAL PLANNER® professional at INT Wealth Planning, serving upper-income professionals in the Greater St. Louis area. Rob specializes in simplifying complex financial decisions and creating tailored strategies for wealth accumulation and retirement planning. INT Wealth Planning focuses on helping clients get organized, make informed financial decisions, plan for retirement, and pursue financial confidence. Rob can be reached at (636) 777-4207, via email at rob@intwealthplanning.com, or online at www.intwealthplanning.com.
This material has been edited with the assistance of artificial intelligence tools. The information presented is based on sources believed to be reliable and accurate at the time of publication. This material contains only general descriptions and is not a solicitation to sell any insurance product or security, nor is it intended as any financial or tax advice. For information about specific insurance needs or situations, contact your insurance agent. This article is intended to assist in educating you about insurance generally and not to provide personal service. They may not take into account your personal characteristics such as budget, assets, risk tolerance, family situation or activities which may affect the type of insurance that would be right for you. In addition, state insurance laws and insurance underwriting rules may affect available coverage and its costs. Guarantees are based on the claims paying ability of the issuing company. If you need more information or would like personal advice you should consult an insurance professional. You may also visit your state's insurance department for more information.
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