10 things I wish someone had told me about retirement by Rein Selles Jim Yih & Patricia French

Author:Rein Selles, Jim Yih & Patricia French
Language: eng
Format: epub
Publisher: Library of Congress Catalogue-in-Publication Data
Published: 2012-01-15T00:00:00+00:00

Round Table:

Insurance Planning Is a Good Rehearsal

Rein Selles

I remember the exact day that I recognized the true nature of life insurance. At the time I was in my late 30's and my wife and I had two children. Raised in a household where the male role was to "take care of business", I made sure, at the time of our marriage, that I had life insurance. The capital, paid at death, would ensure that my spouse would always have the means to create income for a period of time.

I was watching her manage the needs of the children and suddenly realized that, if she died, I would be the one who was vulnerable since there was no policy on her life. As the survivor, I would face two choices:

∼ Stay at home and care for the children but forfeit the means of support for the family; or

∼ Continue to work out of the home and use limited resources to hire that support during working hours.

The sense that "insurance is for the living" suddenly meant something. While it was my responsibility to ensure that life insurance would be paid to my wife, it was my comfort to know, in the event of my wife's death, I had the means to maintain my lifestyle as the survivor.

From a professional perspective, I have worked with a number of clients (male and female) who are the survivors of relationships. Their need for professional advice came in the recognition that, while their partner had provided for the needs, they had not prepared them to manage on their own. In some cases, survivors had never developed a financial identity, learned basic financial skills or worked with advisors and institutions.

The sense of loss of the relationship experienced by the survivor is compounded by the realization that the tools needed for maintaining financial security may have been lost as well. I issue a warning to all couples at workshops:

"If you leave the details of your plan to another, what happens to your plan when that person walks away or is no longer available to provide the details?"

Here are the stage directions for your rehearsal as a survivor of a relationship:

∼ You know what income will continue at death and where it will come from.

∼ You know what capital will be paid from corporate or personal policies and have the knowledge as to its initial placement and investment until advice is forthcoming.

∼ You know you have to apply for Canada Pension survivor benefits.

∼ You know all the expenses (not just those you pay for).

∼ You are confident that the combination of capital and income paid or created will be sufficient to maintain your lifestyle.

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