August 3, 2020

If Your Spouse Dies… Now you are in charge of everything … are you ready?

By Richard J. Schillig, CLU, ChFC, LUTCF
Independent Insurance and Financial Advisor

Recently I came across this booklet/brochure by Robert C. Walker. Since this is my business the topic really caught my attention and I wanted to share it with you. The author’s email address is included in the booklet.

Consequently, I contacted him and obtained permission to reference this booklet in today’s article.

The entire booklet can be obtained at www.ifyourspousedies.com.
In his introductory comments, Mr. Walker states “Over the years of doing volunteer work with widows and widowers I have found an area of planning that is often overlooked. That includes couples who have done extensive estate planning and couples who have done no estate planning at all. There are two critical questions that are often not considered: If you spouse dies, will you be able to stay in your house? AND What will your income be?”

Readers – can you answer these questions? My experience in working with clients finds answers to these questions we don’t want to know. The ability of surviving spouses to maintain the current household depends on income. Remember surviving spouses – at the death of one spouse, one social security check is lost causing a substantial income reduction. Often times with pensions part of household income there is a further reduction in household income. What will your monthly income be if your spouse dies? Consider these income reductions.

Answers to these questions are vital in good planning. My experience in working with clients brings multiple results. Savings is an important component. Often savings is in form of qualified retirement accounts such as 401K, 403b, etc., and these valued accounts are very important with income needs. However the required withdraw from qualified accounts at RMD time can interfere with assets we reference to fill this income gap.
Life insurance becomes very important at this stage in our lives. Often times I hear from retired persons or soon to be retired persons there is no longer a need for life insurance as kids are now raised and mortgages are gone or nearly gone. Often overlooked is this vital income need. Life insurance is very important in filling this income gap. Encourage all our readers to answer these two questions; if your spouse dies,
will you be able to stay in your house? AND what will your income be?

In addition to Medicare business, our agency also provides life insurance. Let us help you answer these two questions. Call us at (563) 332-2200 or email rjsandassoc@att.net.

Richard J. Schillig, CLU, ChFC, LUTCF is an Independent Insurance and Financial Advisor with RJS and Associates, Inc. He can be reached at (563) 332-2200.

Filed Under: Finance, Retirement

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