Let’s get straight down to the bottom line - debt does not die with you.

Many of us have been through a tough period during the recession. Those of us in our late 50s are still working, and some of us following a redundancy because of the recession, have started our own small business. We may have re-mortgaged the house to put more money into the business. If so It is very important for you to understand that it is a debt, and if you were to die unexpectedly you would leave that debt to your dependents, principally your spouse or partner. I have heard people say, “Well it wouldn't be a problem. He / she could just sell the house and move on.”

Is that really what you want your spouse to have to do in those circumstances?

It really is worth thinking that through and seeing what you can do to plan appropriately. The most obvious thing of course is to remove the debt as quickly as possible, but this is always a little bit harder to do and takes time. It may be appropriate to think about life insurance to ensure that, in the event of your unexpected death, the debt is repaid.

This episode really has the same message that runs throughout the whole Baby Boomer Series, which is talk to each other - talk to your family, talk to your business partners and work out what’s going to be the best way for all of you.  

Regards,

Nicholas.