July 2019 Newsletter | By: Ian Sachs, CFP®
The death of a spouse is perhaps one of the most emotionally traumatic events that anyone can experience. It’s a terrible thing to think about, but it’s a thought worth addressing. Having a properly structured estate plan in place will help insure that the surviving spouse and children – if any – are going to be able to maintain their familiar and current standard of living.
Often, the financial requirements to run the household substantially exceed the income of either spouse alone. Life insurance is an excellent means of providing money when it is needed in these traumatic times.
Some families are fortunate enough to allow one parent to stay home with small children while the other earns sufficient income to meet household and living expenses. Couples should consider the potential cost of replacing the services rendered by the spouse who stays at home to care for the children.
Even if children are not in the picture, the surviving spouse may wish to take time off work which will result in additional financial losses. These financial emergencies by acquiring a life insurance policy on each spouse.
It’s a complete misnomer that only the “breadwinner” should have a life insurance policy. Both spouses have financial value and therefore, should both be insured. Setting up a cost-effective life insurance policy at a younger and healthier age can make planning significantly more affordable. As the saying goes, an ounce of prevention is worth a pound of cure.