We met with several clients last week who thought that if they passed away, everything would be given to their husband/wife.
Not true.
Husband and wife own the family home together, as joint tenants. This means if husband passes away, his wife will own the home.
However, there is a $300,000 mortgage on the home. If he dies, while his wife owns the home, can she repay and service the home loan?
Will the wife have to return to work? Who will look after the kids? What if there is enough money to pay the home loan…. What about further money to pay the bills, school fees, food?
This is where, for most, superannuation and life insurance, can help.
Check your super balance. Check your life insurance balance. Is this enough to repay the home loan and enough to raise the kids?
Have you nominated who is to receive your superannuation? Is it binding?
We have seen situations where a retail super fund will pay all the superannuation and life insurance to the Public Trustee to hold for the young children – not one penny is given to the wife.
Sounds complicated? Let us take the worry and stress away.
We can advise based on your unique situation and ensure that your family’s future is secured.
