Dan Solin's Newsletter, December 29, 2016
I'll Bet You're Underinsured
I've had the saddest experiences dealing with widows lately. Their husbands died unexpectedly. In each case, the husband had no life insurance. Although the husbands made a good income, they lived up to their means (and not below it). In each case, it was my obligation to tell the survivor she could not afford to stay in the family home. To make matters worse, I had to tell one widow she needed to go back to work.
In my experience, most men are underinsured. I suspect this is true of women as well, when they are the primary breadwinner.
If your financial advisor does not do a "fire drill," that replicates the scenario of your death, and quantifies issues with your spouse maintaining your current quality of life, you need to find someone who does.
It's your responsibility to provide for your loved ones. Don't shirk it.