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.
Lee Bromfield, CEO of FNB Life, said this is one of society’s common puzzles because people do not want to be seen 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.”
Bromfield said couples who are still in doubt about securing their families’ future, 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 be deceased. 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. Loss of life 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 you and 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. Everyone who cares about their family has a duty to ensure that they are taken care of beyond one’s existence. 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.