If only we could insure against relationship breakdown

When I sit down with couples to talk about their life insurance, the conversation usually goes along the lines of “I want you both to consider what you would want your life to look like if your partner was no longer around, or unable to provide for the family”.

For a couple with dependent children, the process would usually involve putting a value on the primary breadwinner’s likely financial contribution to the household between now and when they would be stopping work to retire.  The idea being that if their ability to earn was suddenly stopped, the family would need to receive substitute funding to be able to continue on in the same lifestyle.

This week I was reading yet another article about single women being statistically much more likely to find themselves in poverty in old age (You can it read here).

In many cases women who find themselves alone and homeless at the point in time when they should be relaxing in comfort is that they have been very much disadvantaged by a relationship breakdown.  They may have been able to leave the relationship with half or more of the joint assets, but their ability to generate fresh income is severely restricted by child care responsibilities, degraded skills (due to time out of the workforce) plus the ever-present gender pay-gap.  They end up having to eat into their asset base to meet their day to day living expenses.

However, had their partner been adequately insured and died they would have received funds to be able to substitute for the lost future income.

What a shame that we can’t insure against divorce?

If you are divorced or divorcing and worried about your financial future, we would be happy to talk to you about your options.  Our long term approach and strategies can work well for those who are in the process of rebuilding.

 

© Summation Strategies 2017.

Please note that all information provided is of a general nature and does not take into account your current financial situation, needs or objectives.  Before acting on any of the information you should consider its appropriateness, having regard to your own objectives, financial situation and needs.  We recommend those seeking insurance or making an investment obtain financial advice specific to their situation and consider the Product Disclosure Statement prior to making any financial investment or insurance decision.

If only we could insure against relationship breakdown
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