I was surprised to read a report that revealed several tendencies regarding the financial situation of older widows or divorcees. The report stated that 56% of married women leave all of the financial planning and investment considerations to their husbands.
You might think that this type of situation would be changing with younger couples. It’s surprising to see that millennials are not only following this trend but increasing it. 61% of millennial women have little to do with the family finances.
One reasonable question, then, is, “What happens if the spouse is no longer there?” Even worse than a divorce, what does she do in the event of a sudden death? In either case, the partner is left with grief, uncertainty, and a lot of tough questions.
Questions like, “How do I pay the bills?” “Do I know about everything?” Most importantly, “Is it enough?” “Ultimately, am I going to be ok?”
Here are some other findings from the study:
53% would have done fewer household chores to find more time for finances
56% of widows and divorcees discover financial surprises
59% of widows and divorcees wish they had been more involved in long-term financial decisions
64% of widows blame themselves for not being more financially involved
74% don’t consider themselves knowledgeable about investing
79% of women who remarry take a more active role in the financial situation
Here is a little more insight into who these women are. The study shows that:
975,000 women become widowed annually.
The median age of a widow is 59.
The average widow spends 10+ years alone.
And, sadly, the most unnecessary statistic: an average 37% decline in the survivor’s income after a spouse dies.
The best thing is for a couple to have enough protection in the event of a sudden death. We routinely work with people to properly evaluate their current insurance portfolio. When it’s good, we can certify that. When it’s not, we help them determine what’s wrong and help them identify their best alternatives.
Stratus Financial was created to stress test and benchmark your current life insurance portfolio. With decades of experience in the insurance industry, we exist to do the right thing for people – by putting their best interests first. We do not work for any insurance company-we work for you. There are no specific policies to push or quotas to be met. We just believe in doing the right thing, every time.