18 December 2012 0 Comments

A Modern Family’s Financial Dilemas

familyThe Modern Family might consist of several marriages, children from more than one of these marriages, children out of wedlock, long-term fiancé,  mistresses best left unmentioned,  ex-spouses, under-performing adult children,  challenged adult children and dependent parents.

I won’t attempt to solve the everyday financial challenges of these various arrangements…it’s complicated.  But, if you think it’s complicated now when you are around to serve as referee and provider, think about what your early death would do to the picture.

If you are the principal provider for any of these modern families, take yourself out of the picture and think not only about how the loss of your income would affect your family menagerie; think about how those left behind would inter-act with each other as they each scrambled for what they believe to be their share.  It may not be a pretty picture.

Life insurance to the rescue!  The beauty of this self completing product is that it allows you to predetermine exactly how each party is to be cared for and delivers the proceeds directly to them in a discreet, efficient manner.   Policies may be structured to provide a fixed dollar amount for a pre-determined period of time.  Term insurance of with various term-duration profiles could be used for children of whatever marriage through their post college years or for dependent parents during their anticipated lifetime.  Lifetime guaranteed Universal Life could be used for spouses (current and ex), mistresses (paramours) or children with ongoing needs.  Each policy could have a separate owner and beneficiary to designate funds directly to those in need.  Or, a living trust could be used as beneficiary.  In both cases, proceeds avoid the publicity and costs associated with probate.  If it is important to avoid federal estate tax, an Irrevocable Trust might be used as owner and distributor of the death proceeds.

Think about it.  If your situation is complicated now, don’t allow your death to produce more financial turmoil.  The emotional loss will be bad enough.  At lease leave them all with the remembrance of a loving, caring provider.  Talk to a life insurance professional who will tailor make a plan for your Modern Family.

Coming up:  the importance of Financial Justification and Insurable Interest in underwriting Life Insurance.

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