Paula and Jack were married for 22 years. Jack was a great “Provider” and had been the one to suggest that Paula should stay home to raise their children.  She never went back to work as there was always something that needed to be done for Jack and the boys, taking care of the home, and checking on her elderly parents.

Both boys were now in college. Paula and Jack were once again getting accustomed to doing things together by themselves.  Last year they went on a 7-day cruise without the boys for the first time in many years. 

One night, shortly before their 23rd wedding anniversary, tragedy struck.  She was in the kitchen putting the dishes in the dishwasher and he was in front of television as they continued speaking with each other.

Paula said something and Jack did not respond.  She called out to him and there was no answer. Flooded with concern she rushed to his side and saw that he was limp. She immediately called 911.  Before the emergency crew arrived at their home, she knew in her heart that he was dead. She just kept screaming, “Help him! Help him, please. I can’t lose him.” Jack was only 52 years old.  It all happened so suddenly.

She knew there was enough money in their checking account to make all of the funeral arrangements. The boys had to return to college so two weeks later she went down to the bank.

Losing her husband was deeply painful and she wondered if she’d ever feel whole again. What she learned when she spoke with the Manager would hurt even more, in a different way.  It felt like the ultimate betrayal.  She discovered that her husband’s business had been struggling for some time and he had been pulling from their savings leaving very little to take care of them. He’d also cashed out some of their investments. She was shocked. She was hurt. She was not worried because there was still his $500,000 Life Insurance Policy that would take care of her and the boys.

The following day she called the Insurance Company. They were almost apologetic when they told her that the policy had lapsed over six months ago. They’d sent many reminders but Jack had not responded.  She knew there had to be a mistake. Jack would not do this to them. Something seemed to snap in her head. She went into his office and pulled out drawers scattering papers and books on the floor.  In the last drawer to the back of the drawer she found the letters laying there.  She remembered seeing them in the mail and never once had it occurred to her to ask him why the insurance company was writing him. She was devastated! What would happen to her and the boys’ education?

Unfortunately, this scenario is not uncommon. A woman who leaves all financial matters to her husband may unexpectedly become a widow and discovers that the financial security she thought they had is no longer and now puts her in financial ruin.

3 Tips to Avoid the Dangers of Sudden Widowhood:

1.    Both spouses should be involved in their financial planning. If the husband takes the dominant role in financial planning, the wife should be sure to have a list of all contacts related to their finances and all passwords.

2.    Make sure that all accounts are held jointly by both parties.  Failure to do this can result in a long probate process, during which time you, the widow, will not have access to those funds, even if your State mandates that the wife is the beneficiary.

3.    If you should become a widow and now have access to lots of assets, keep in mind that this is not the time to rush out and make major decisions on investments, etc. You’re grieving and in a fragile emotional state.  Give yourself a few months and then enlist the help of a trusted Financial Professional who will guide you on making the best decisions based on your age and other factors.  Have a trained Social Security Analyst walk you through your Social Security Benefits, especially if you’re close to that age, is highly recommended.

As a Registered Financial Consultant and Social Security Analyst, I invite you to reach out to me to schedule a complimentary consultation…561-302-5760

 

Sara Finkelstein is the author of “Wi$dom for Women – Discover the Challenges You Must Overcome to Live the Life and Retirement You Deserve”, available on Amazon.  Since 1996, Sara has been helping retirees take the “what ifs” out of retirement so they can enjoy Peace of Mind and a Worry Free, “stay retired” retirement!  Sara is a Registered Financial Consultant and Registered Social Security Analyst, Helping Soon-to-Be Retirees with Professional Social Security Planning Strategies, While Creating An Income You Cannot Outlive.  She lives in Delray Beach, FL and can be reached at 561-302-5760 or by email: Sara@SignatureAdvisoryGroup.com

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