Why it's a good idea to insure your spouse | Fin24
 
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Why it's a good idea to insure your spouse

Jan 26 2016 14:29
Lee Bromfield

Taking out life or funeral insurance on your spouse is often seen as a sinister move or the 'elephant in the room' among couples. For this and other reasons, spouses tend to neglect this responsibility, exposing their families to unnecessary financial risk.

This situation has arisen because people do not want to appear to be planning their partner’s death.

Couples need to treat life or funeral insurance as part of their day-to-day financial planning. It is all about ensuring financial stability there should be no secrecy or mystery around such decisions. Instead, spouses need to make such decisions together to ensure they are adequately insured.

Couples who are still in doubt about securing their families’ futures (by insuring each other) should consider the following:

Losing a loved one can lead to financial strain

• Not many people have tens of thousands to cover costly responsibilities such as paying for a funeral or running a household on one income should a spouse pass away. In this situation, life or funeral insurance can provide relative financial relief or security.

Why risk losing family stability?

• In most relationships, each spouse has financial responsibilities that are crucial to maintaining a stable family environment. Whether it’s paying school fees, buying groceries or paying a bond, the contributions are vital. Any negative financial impact could significantly destabilise the family.

You are planning ahead

• Dying is an inevitable part of our existence. So if you know it is going to happen, there is no reason why you should not plan for it to minimise its impact on your loved ones.

Avoid getting into bad debt

• With the escalating cost of living, a spouse’s income could be the difference between a debt-free, happy family and a very unhappy, heavily indebted family. Even though not all debt is bad, no one should rely on debt to cover day-to-day expenses.

Rather be safe than sorry

• As someone who cares about your family, it is your duty to ensure that they are taken care of beyond your passing. Taking out life or funeral insurance can be crucial in ensuring this, depending on the lifestyle and value of your insurance. Make smart decisions now to avoid long-term financial agony.

In a modern society, financial planning should be a non-negotiable aspect of everyone’s life. Whether you are single or have a spouse, there are always important financial decisions to make  make the right ones to safeguard your family’s future.

*Lee Bromfield is CEO of FNB Life.

funeral  |  death  |  personal finance  |  risk  |  life insurance
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