Since women might live some of their years in retirement alone, husbands can help make sure those years are well provided for by reviewing their estate conservation plans regularly and updating coverage as needed.
An old movie spawned the oft-quoted line: “Love means never having to say you’re sorry.” And while the saying holds little truth when it comes to interpersonal relationships, it does seem particularly applicable when it comes to financial planning.
It is understandable that many people are uncomfortable thinking about a time when a loved one may no longer be with them. However, making sure a surviving spouse is well provided for during retirement is one of the most tangible and meaningful ways to say “I love you.” To avoid future financial regrets, put a solid plan into place now that will help ensure security and comfort for those who mean the most to you.
Life Expectancy and Your Financial Future:
According to the U.S. Department of Health and Human Services’ December
2005 report, American men have an average life expectancy of 74.5 years
while women live more than five years longer to an average of 79.9 years. Since women in particular will live some of their years in retirement alone, husbands can help make sure those years are well provided for by reviewing their estate conservation plans regularly and updating coverage as needed.
Consider life insurance as a way to help:
* Provide income to a spouse or partner who is not covered by your retirement plan or entitled to social security benefits following your death.
* Provide funds for the purchase of medical care coverage or other expenses as needed. Although the primary reason to purchase life insurance is for the death benefit, its cash values can be accessed while you are living. Please remember that withdrawals and loans will reduce the death benefit and cash values and may have tax consequences.
* Reimburse, or leave a legacy to your children, grandchildren or other loved ones for costs they may incur in caring for you should you outlive your personal savings.
Your retirement management plan may look great on paper now. But what happens when you die? If you were no longer around, would your sweetheart be able to maintain the lifestyle you’ve worked so hard to attain?
The good news is, shoring up your assets and savings may not be as costly as you might think. Case in point: Let’s say a 50-year-old married man wants to provide an additional $500 a month for his spouse assuming she will live 10 years beyond him in retirement. A $50,000 policy would do the job if she could invest at 5 percent. Depending on the policy, his health and other factors, the premium per month may only be about $80, roughly the price of a dozen roses.
And that’s a smart financial move that neither one of you will ever be sorry for. For more information and tips on preparing for retirement, please visit www.prudential.com.
Courtesy of ARA Content
Photo: Lucid Nightmare