If Something Happens
I try not to bring it up to Sarah too often, but sometimes it's necessary. If something terrible happens to me, what are her next steps? This is a relevant topic in our household right now due to some potentially risky travel on my calendar this summer. We don't want to live scared, yet at the same time, we can't live naively.
If something happens to me, Sarah needs to be fully equipped with the information, skills, and game plan to enter that new season of life. Frankly, I hate working on this stuff. It gives me a queasy feeling every time I do. However, it's one of the ways I say "I love you" to Sarah and the boys. I owe it to them to be financially prepared for that outcome. They will already have enough hurt on their plates, so we can at least take the financial piece out of the equation.
Today, I want to share a few important components that I believe all families should work through as part of this process. You know, just in case.....
An archive of all online passwords. We use an encrypted password app.
Securing adequate life insurance coverage that will effectively replace the deceased spouse's income and allow the family to stay afloat. So many people are underinsured.
A list of dollar amounts and institution names for all financial assets (and debts). Checking, savings, investments, etc.
A repository of all key physical documents (car titles, property deeds, birth certificates, etc.). In our case, it's a safe deposit box at a bank.
A collection of other financial documents/policies, such as life insurance, home/auto insurance, disability insurance, wills, etc.
Instructions for how the surviving spouse should attack the situation if something were to happen. Having an established roadmap is a huge step. Here's an example from mine. Step 1: Call the life insurance company. Step 2: Deposit the life insurance proceeds *here*. Step 3: Start taking monthly withdrawals of $x from this pool of money to provide for the family.
Bring in a trusted friend or family member who will help the surviving spouse get this sorted. Our loved ones don't need to do it alone! I already notified my person and gave him a heads up.
Recommendations for companies that might be good resources to help walk alongside the family to manage some of these financial pieces.
These types of actions aren't the product of paranoia or fear, but rather responsibility and care. I won't be here forever, and while I hope I have many more decades on this planet, I want my family to be okay if it happens too soon. I love them so much.
There's no need to get all morbid about this, but it's worth discussing with your spouse. Make a plan, set it aside, live a meaningful life, and hope you don't have to use it for a long time.
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