The Hidden Costs of Losing Your Spouse

At a time of grief, stress and loneliness, a newly widowed person shouldn’t also have to face financial hardship.

Although nearly half of U.S. families say they would feel the financial impact of losing a spouse or partner within six months,¹ 30 percent of households have no life insurance coverage.² While the last thing happily married couples want to discuss are the financial repercussions following the untimely passing of a spouse, it’s an important conversation. Follow this checklist to help make sure you or your partner will be covered in the event of a loss.

1. Confront the Unthinkable

It’s not surprising that almost one in five married couples has life insurance for only one spouse.³ After all, “What would I do if I lost you?” isn’t something most couples want to talk about. But this question does need to be answered from a practical perspective (if not an emotional one). Set aside a time to have this conversation.

2. Calculate Your Current Needs

List what expenses would need to be covered in the event of each spouse’s passing. Items to consider include:

• Mortgage payments – Tip: A term policy that’s greater than or equal to your mortgage term and amount is a good way to make sure this expense will be covered.
• Child care costs or tuition
• Medical bills
• Financial support for aging family members
• Funeral costs
• General cost-of-living expenses

Additionally, if you and/or your partner are still working, you would also need to replace some of the income your household currently depends on.

3. Consider the Long-Term Math

The latest data from the U.S. Census Bureau reveal that 12.1 percent of men and 33.6 percent of women 65 years and older are widowed.⁴ Overall, the average life expectancy in the U.S. is 76.3 years for men and 81.2 years for women.⁵ In other words, many widows may live alone for 10 years or longer. Use your current budget as a guide to ensure you will not be at risk of outliving your funds.
 

• 2016 Amica Life Financial Peace of Mind Survey, 2016.
• Trends in Life Insurance Ownership, LIMRA, 2016.
• 2015 Amica Life Financial Peace of Mind Survey, 2015.
• America’s Families and Living Arrangements, United States Census Bureau, 2016.
• Life Expectancy In U.S. Drops For First Time In Decades, Report Finds, NPR Morning Edition, 2016.

ALIC35418 (exp. 12/19)