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What happens when your spouse dies?

By March 18, 2021March 22nd, 2021Personal Insurance

Nothing matters more than family. And as a parent, it is no secret that protecting your family is of utmost importance. Oftentimes, life insurance is purchased on the “primary breadwinner” to protect families from lost income in the event of an untimely death. Without this significant income, it’s obvious the surviving family members would struggle to make ends meet, let alone find a comfortable path forward. 

Unfortunately, what families often DON’T prepare for are the financial consequences of an untimely death to a stay-at-home parent, because that parent isn’t providing traditional income.

In the event of death, stressful challenges arise and compound grief:

  • How will your family function and financially get by? 
  • Who is going to take care of children and pets while you are at work?  
  • Can you afford the extreme costs of regular childcare that weren’t part of the budget before?
  • Will you need to change jobs for one more suitable to a single-parent family? 
  • How viable is it to make sound and well-thought-out choices for your family’s future in the midst of sudden tragedy?

While dealing with the devastation of loss and going through the grieving process, ensuring that your family remains financially stable is a top concern.

The good news is you’re not alone.

Many families only have life insurance on the “primary breadwinner” because when people think life insurance, they’re typically thinking about replacing lost income. With a stay-at-home parent having no income, it’s logical, at first thought, to see no need for life insurance coverage. 

Unfortunately, the reality is additional expenses that occur with the death of a stay-at-home parent often make life insurance a necessity. 

With appropriate life insurance on both parents, you assure that if tragedy strikes, your family will be able to remain financially stable while also retaining a similar standard of living.

What kind of coverage is appropriate? At BCF Group we recommend considering the following:

  • Term life insurance, which is the most affordable method of life insurance tailored to the number of years that coverage would be needed to support your family.
  • Whole life insurance, which is a more expensive option of getting life insurance that provides coverage for your entire lifetime.
  • No life insurance. Life insurance is not a need for everyone. Perhaps you have money set aside or your family dynamic does not require life insurance. 
  • Talk with your broker about financial needs and priorities in the event of a death and how to ensure that you are protected.

At the end of the day your family is everything. Don’t risk their livelihood, health, and safety by leaving them unprotected. While it’s common to think “this could never happen to me,” it’s happening to someone all the time. If you have any questions or would like further information, please talk to your broker or feel free to reach out!

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