Financial planning for women at a turning point

Here are some thoughts on how to be proactive, thoughtful and helpful when some women may need your advice the most.

Divorce and separation

The end of a marriage or long-term relationship can have ripple effects through virtually every area of life. There’s no question that it should trigger a detailed financial review. Not only might income and expenses change dramatically, so might the need for investments and insurance.

From an investment perspective, it’s time to reset expectations around what retirement might look like, what assets are available to fund that retirement, and what savings strategies are possible to help them get there.

From an insurance perspective, it’s time to assess what exactly has changed. Was your client previously covered by her ex-spouse’s workplace coverage for life, disability, and/or critical illness? Was she the beneficiary of any policies that have since been removed? A fresh Insurance Needs Analysis can help your client understand what coverage needs to be replaced, and what coverage they may want to think about implementing now.

Many things change after a divorce, including the financial plans that once provided financial security. As an advisor, this is a time when you can help restore a sense of safety and stability.

Changing role of motherhood

Many women in their 50s find themselves juggling the responsibilities of being a single parent while also caring for their own aging parents. When these family dynamics are at play, professional financial planning can help reduce stress and clarify priorities.

Protecting children is essential, especially if the ex-spouse is out of the picture. A single mother needs to consider what financial resources would be needed to provide her children with financial security, even if she were not able to support them due to injury, illness or death. An Insurance Needs Analysis is essential here.

On the investment side, there are a number of questions you will need to discuss. For example, will your client want to fund a Registered Education Savings Plan (RESP) or First Home Savings Account (FHSA)? Will she be funding part of it, or all of it? And how might this responsibility dovetail with her own retirement savings needs?

The desire to protect our children is among the strongest human instincts. Discussions on this topic might even include grandparents or other close family members when appropriate. As an advisor, you can provide tremendous value by showing families how they can best care for their young ones.

Retirement and estate planning

If a woman in her 50s has not yet defined her retirement strategy, or if that strategy has been disrupted by a major life change, there is some urgency to act. First, because the timeline to retirement is growing shorter every year, and second, because insurance-based retirement and financial planning solutions can become less accessible and more costly as we age.

Permanent life insurance can be a powerful way to create a safety net for children while also building wealth for retirement. While your client is working, there is the opportunity to accumulate a substantial cash value. In retirement, there is the potential to access the cash value or use policy loans to access tax-efficient income. And upon death, there is a tax-free transfer of wealth to the next generation.

Your clients are always better off when they have time on their side. The sooner retirement and estate planning is addressed, the better the odds of securing insurance coverage at attractive rates, and allowing more time for their investment to earn positive returns.

There is a direct link between clients' changing life situations and their plans for financial growth and protection. Women in middle age share some common transition points that you can help identify and resolve throughout their 50s and beyond. And as their needs continue to change, Beneva will be here to support you and your clients with the right life and health insurance solutions.