The American Prospect published this article about John Santorum - US Senator. According to this article, this US Senator is under insured.

When I think of a US Senator, I see a person who has developed a "self-emposed life style." Here is a guy that must keep up appearances with the public as well as the political machinery.

In this article published by the American Prospect, this US Senator makes $162,000 and is really living pay check to pay check. He is even getting money from his parents to help offset the bills. (OUCH.. I can't believe that he has to admit to that publicly.)

According to the article, the Senator has an oversized house ...

It is here, some 43 miles by car and a world away from Capitol Hill, that Pennsylvania?s junior U.S. senator, Rick Santorum, and his wife, Karen, bought a home on November 14, 2001, for $643,361 (now assessed by Loudoun County at $757,000). (The property has a $500,000 mortgage against it.)
...
The Santorums bought their oversized Shenstone ?estate? even though his financial disclosure forms since 2001 have shown little family income beyond his Senate salary, now $162,100, and he admits that life hasn?t been financially easy. The senator made a startling remark to The New York Times Magazine last spring: ?We live paycheck to paycheck, absolutely.? But he explained that his parents help out. ?They?re by no means wealthy -- they?re two retired VA [Veterans Administration] employees -- but they?ll send a check every now and then,? he said.
...
On his 2002 disclosure form, Santorum listed liquid assets, primarily retirement accounts and life insurance, in a range no greater than $140,000.

This US Senator family who currently enjoy a nice income of $162,000 and little other income, would have big problems if their main bread winner past away unexpectedly.

If they're barely getting by on $162,000 they would have to immediately sell their mansion and move into something more affordable. By the sounds of it, $140,000 cash would barely last this family with 6 children for 1 year after paying debts, funeral expenses, and other expenses associated with his death.

The wife and mother would have to get a job, if she isn't working already to try to support their lifestyle.

I thought this was a great example of being under insured, especially with such a public personality. The mentality seems to be, "we're doing this all hoping that the main bread winner doesn't die." "Actuarily speaking, the bread winner is not supposed to die until age 75", (or what ever the current number is.) Thus it is okay for people to take on huge debt and leave their family completely exposed.

Although the article doesn't mention it, I hope that this senator at least has mortgage life insurance.

Articles from February 2006
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