He's a retired physician, widowed, 4 kids, living off his investments. HeÃ†s worth $6M. I have no kids and my net worth is $175k. All his accumulated wealth will go to his kids when he dies. HeÃ†s offered to take out a $1M life insurance policy with me as the beneficiary. ThatÃ†s all IÃ†d receive at his death. Is this fair?
Fair is a concept you have to answer yourself. If you're getting married making a committment for life is it? Can you live on $1M plus your modest savings? What is his rationale? What is his age and health. Perhaps more insurance might resolve the issues. Does his reluctance indicate other problems? Is the insurance to be owned by a trust? How will you assure it is paid and kept in force? What type of coverage? If its term insurance and he develops a health problem and insurance is no longer affordable, will he be able to maintain the insurance? If not, where does that leave you? What leverage will you have? Should you make certain that he is getting a permanent policy with a top quality company and that you get notice if premiums are not paid? If not paid what is your recourse?
Apart from insurance where are you going to live? If in his house or apartment do you get thrown out the day he dies? What about jointly acquired assets? If the two of you re-furnish who gets the furniture? These things may sound petty but if the kids are not fond of you the trauma of loosing your new spouse could quickly follow by your getting a boot out of your home!
As long as you are asking questions, what happens if your new husband is disabled? Who pays the bills? If he is put in a nursing home in the future, can you remain in your home? Many pre-nuptial agreements ignore the entire issue of disability. Could be a problem for you.
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