ONCE UPON A TIME: SOPHIE AND CARSON
Sophie and Carson met in graduate school. They both secured good jobs in the engineering field, got married and wanted to start a family. Once the kids came along, Sophie quit work and Carson’s
career continued to progress.
Carson’s a great engineer but not so savvy when it comes to matters of insurance and finance. He doesn’t believe in life insurance. He feels that if something happens to him, Sophie can go back to work. Similarly, he feels that since Sophie is a stay-at-home spouse and no longer brings earned income to the household, life insurance isn’t necessary for her. Let’s walk through a few scenarios:
First let’s assume that Carson meets his untimely demise. The family is grieving; Sophie has lost her husband and the children have lost their father. Do the children need more care or less in this situation? Does anyone want Sophie to be forced to return to work to feed the family? How employable is Sophie at this point? Yes, she is an engineer by training and education, but are her skills current? Has she maintained her network so that she can get in front of the right people who can offer her a job? Chances are she can’t earn a salary comparable to what Carson made. How will she pay for daycare? Who will do all the things she has been doing while not working outside the home?
On the other hand, let’s assume Sophie meets her untimely demise and Carson is the widower. The children have just lost their mother and he has lost his wife. Can he continue to maintain his work schedule so that his career continues to thrive? What’s he going to do for childcare during the day, especially if they don’t have family in the area? What if travel is a big part of his job? Where does he find overnight childcare? How much does that cost?
Together, Sophie and Carson need to figure out what they want to have happen in each of these scenarios and attach dollar amounts to them. Would they want money to be available for the kids’ education costs? Would they like to pay off any balance on the mortgage? Would they want to provide a way for the surviving spouse to have supplemental income since, in either situation, their daycare expenses are going to rise? Once they can identify their goals, they’ll be able to determine the amount of life insurance they need. Then they can buy policies to meet their goals and budget.
Excerpt from It’s Good to be Queen by Roselyn Wilkinson