Spring Cleaning - It doesn't hurt to ask

Spring is a time of renewal.  We plant the garden; spring clean the house and the yard.  It’s also time to review our financial records and make sure our family is protected in the best possible way. 
Susan and Rick were a typical couple.  They had established themselves in their own company before starting their family.  In recent years, Rick had taken over the business himself and Susan was a stay-at-home mom looking after their three children.  In fact, they had done very well.  They had purchased a beautiful home close to the ocean with a huge backyard for the children.  They did have a $400,000 mortgage, but with Rick’s successful company, which was now an LTD., they could easily make the payments.  When they negotiated their mortgage, the financial institute had offered them mortgage insurance and Sue and Rick had quickly signed the papers thinking that it would protect their family if they were to die.  The couple paid their monthly mortgage payment and forgot about it.
Unfortunately, Rick had a heart attack and passed away.  Susan was devastated and it was no easy task looking after three small children on her own.  The financial institute claimed on Rick's mortgage insurance and recovered the mortgage funds...  However, because Rick was self-employed his bank accounts were frozen.  Susan could not qualify for a loan.
Now Susan was in a bad position – even though the financial institution paid off the mortgage, how would she feed the children?  She went to social services to get assistance, but was turned down because her home was above the financial limit.  Now she faced more.  Susan was desperate for money.  She immediately listed the house for sale.   Over the next few months Susan managed to feed her children by going to the local food bank and borrowing money from her elderly parents.  She did this all, while grieving and looking after her children.   The house did sell, but several hundred thousand below the appraised value.  Susan was worried about how she would manage alone.  What if something happened to her?  The financial institute’s mortgage insurance didn’t provide for a surviving spouse.   How could things have been different?
One option for Rick and Susan would have been to consult with a licenced life insurance broker.  Private mortgage insurance provides individual coverage so each parent would have life insurance, even if one died.  If both Rick and Susan had died, private mortgage insurance would pay out on two lives, not just one, leaving funds for a guardian to raise their children.   In the case of Rick’s death, Susan, as the beneficiary would have been paid the funds, not the financial institute, and she wouldn’t have to wait for Rick’s business affairs to be settled.  Susan could have decided how much of the mortgage to pay off, while keeping some funds in reserve for monthly expenses.  Susan could have stayed in her home, and still had her own private life insurance in place.
Spring clean your family’s financial security.  Talk to a professional life insurance broker about protecting your family.  It doesn’t hurt to ask.