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You know what happens when you assume, right?

August 06, 2020
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“My wife and I don’t need life insurance. We know my wife’s parents will take care of the children."

Often times that’s exactly what happens when couples with young children assume their parents or in-laws will step in to take care of their young children should anything ever happen to them.

Let’s illustrate a scenario where no additional planning measures were addressed. Suppose one of the parents passes away prematurely while having young children at home, the grandparents may have to resort to do the following:

  • Delay retirement to earn more money in order to support the welfare of their grandchildren, which may not be enough
  • Use funds that were specifically earmarked for retirement, and dividing them amongst the grandchildren, while now trying to figure out how to live a new lifestyle
  • Continue living in the house they anticipated selling upon retirement, or even expanding the house to satisfy the living needs of their grandchildren

These are only 3 examples of some of things that may happen. While it is absolutely commendable that grandparents may want to care for their grandchildren, it makes sense that they have plans in place should they ever be needed. Alternatively, even if grandparents may not mind taking care of their grandchildren, there is a whole financial element that needs to be addressed. Items such as clothing, food, and even tuition can create tremendous financial stress.

While we may not be able to predict the future, we can plan for retirement by opening up retirement accounts and managing the money we deposit into them. College planning can be done in a similar fashion by opening a college savings account and managing the money for the purpose of paying for college tuition. Equally important one can address ways to protect their assets, and their family’s future.

One of the most fundamental ways is to make sure we have the appropriate amount of life insurance in force. The type of insurance doesn’t not necessarily matter as much. I can assure you the beneficiary of a life insurance policy does not ask whether their spouse or loved one had term, whole life, or universal life insurance they are equally relieved to receive a check during the time of need. When quantifying the amount of insurance needed there are different methods to conclude what is a suitable sum, but oftentimes justifying the premiums can be difficult. However, it’s important to remember, the amount of money needed to purchase life insurance to protect a family is negligible compared to the outcome if it was not.

Aaron Safier is the founder and chief executive officer of Sapphire Wealth Advisory Group, a New York based firm that provides a full suite of financial services for high-net-worth individuals, families, and business owners. Aaron has a long history of success within the financial sector that encompasses more than 14 years of experience and several roles in prominent companies. To learn more, please visit

Life insurance policies are subject to eligibility requirements and restrictions and may not be right for everyone.