When it comes time to think of “Lost Income Events” most people think of a younger family and the need to own a term life insurance policy to cover a family’s need in the event of an untimely death of a loved one.
But what happens in retirement and you loose a spouse? There can be a significant lose of income for the surviving spouse when this takes place. There can be lost or reduced pensions, lost Social Security, and reduced annuity payments to name a few.
We guide people though a “Lost Income” workflow that can help calculate the lost income for each spouse in a scenario of losing a spouse. This planning process helps prepare the surviving spouse for a way to replace as much of the lost income as possible. I believe every asset has a purpose and one of the strategies I recommend, if suitable, is a asset designated as a “Lost Income Replacement Fund”.
If you don’t learn anything else from our company but this one thing; that is please don’t leave your loved one burdened with a massive income shortage. With proper planning you can fix this.