Very few people like to think about their own death, or the death of a spouse or partner for that matter. But when it comes to finances it’s a thought that everyone needs to have. Although it’s sad to say some people do die before their allotted time and the financial consequences of an early death are rarely thought about until it’s too late.

Have a think about the following questions now while you’re sat reading this…

• What would happen if the main breadwinner in your house were to pass away unexpectedly?
• Could you afford to pay the mortgage and the bills?
• Could you afford to feed yourself and your children if you have any?
• Could you even afford the funeral expenses?
• Could you continue to pay any other major financial commitments you have, such as loans, credit cards, school fees, pensions etc?
• Could you get a job to cover all the above expenses?

A lot of younger families would probably answer no to most of the questions above (unless they really have their heads screwed on) and yet a lot of families do have the financial commitments mentioned above. So how would you pay the mortgage and the bills and the loans and the credit cards? And what would happen if you can’t pay?

The Possible Consequences of an Early Death

If the worst happens and the main breadwinner in your family passes away unexpectedly then you’ll be left with the debts that you’ve taken on between you during your time together. This will include the joint mortgage, any joint loans, any joint credit cards, the car finance if you’re both on the agreement and the bills for the home. Obviously if you can’t afford to pay then you may loose your home, your car and the worst case scenario is that you are declared bankrupt.

Planning for an early death is imperative if you have family and large financial commitments as the last thing you want to do is leave your loved ones with bills they can’t afford to pay. At the very least you should take out a life assurance policy that covers the cost of the mortgage so you know the house is paid for. Then if you decide to take out additional policies or insurances to help ease the other burdens then so much the better.

Paying a small premium each month is nothing compared to the possible consequences of an early death and even though you probably don’t want to think about the prospect it’s better to do it now than when it’s too late.