At first thought, money and love have extraordinarily little to do with each other, and some would argue that grouping the two topics together is the antithesis of romance, but the truth is that money is a part of life, as is love, therefore the two are inextricably linked. When you break down why we need money, how we use it, and how that relates to those we love, financial protection is a very loving form of security. To those who give this protection it provides the peace of mind that comes with knowing your loved ones will be financially secure when you are not around, and for those receiving it, the peace of mind that money will be at the bottom of your worry list in case of emergency or an unthinkable situation.
Protecting Your Spouse and Children
If you are the main financial decision maker in your home then the weight of the responsibility to care for your spouse and children once you are gone probably falls quite heavy on you, but it does not have to. One way to alleviate the burden of ‘will they be ok when I am gone’ is a life insurance policy. Taking out a life insurance policy on yourself is a secure way to protect your spouse and kids from having to tie up financial loose ends out of pocket in the event of your death.
Life insurance policies can also act as a type of savings account to be accessed while you are still alive, while keeping in mind your desire to be the main financial provider. In some cases, you can sell your life insurance policy and access the cash value to cover large expenses like long-term health care, while you are still here with them. You can review a guide to see how much your life insurance policy is worth before putting this plan into motion and use that information to determine if selling is right for you and your family.
Protecting Your Parents
Taking care of aging parents is more than just assisting with errands and hiring out a lawn service so they no longer must physically maintain their home. It also includes managing and protecting their finances so that they are financially comfortable and not leaving themselves vulnerable and open to the potential of being taken advantage of. This can be difficult because people in this stage of life do not typically enjoy relinquishing control of pieces of their life, but it is necessary. Have the talk with your parents about where they keep their money, who their financial professionals are, and if they have a will in place to determine what their wishes are once, they are gone.
Strike the balance between supporting them and overstepping to the point they feel shutout from their own finances. Ask them how they suggest you assist them and watch for signs of trouble. Encourage them to never sign a document that they do not understand and offer to connect them with the right people to help them do so should they need it. The earlier you bring this conversation with your parents the easier it will be to have. By initiating it in a casual way, as a preventative measure in advance of necessity you are letting them clearly communicate their wishes while also hearing your words as you intend them.
Protecting Yourself
Do not forget to also consider yourself, as one of your loved ones. Money talks during the dating stage can be uncomfortable and even feel unnecessary but if you find yourself growing increasingly serious withing your relationship it is essential that you both be on the same page about money. You already know what money means to you but to know what it means to your partner; you have to ask. Protection at this stage might come in the form of more conversation than action but do not discount these talks. Knowing where each other stands on savings vs spending, existing debts, plans for retirement, and even prenuptial agreements will make acting on these matters easier when the time comes because you have already initiated the conversation.
If you are not yet married, do not feel pressure to financially act as if you are. Tradition is wonderful in romance, but it is not the only option regarding your money. For example, if you decide to live with someone to whom you are not yet married, be honest about how that will financially look for both of you. If one person walks away, you want to make sure that you are protected against extreme financial hardship because of that split.
