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Pre-nuptial agreement

As part of a pre-nuptial agreement a substantial term insurance policy to the benefit of my spouse was purchased so that my pre-marital assets could be directed through a revocable living trust to children from my first marriage.

Based on our other income, the ESPlanner is suggesting we drop this insurance, since under ordinary circumstances we appear not to need it.

While it is possible, with the help of the ESPlanner, we may be able to adjust the amount of insurance we continue with, that decision has not been made, and I need to proceed with things as they are for now.

I need to be sure I'm entering the premium amount in the right way, so that the amount recommended for consumption smoothing is not assuming the insurance is being dropped.

Should I just put the annual premium into special expenditures for each year out to my life expectancy, and change it later if we so decide?

1

laste at bellsouth.net wrote:Should I just put the annual premium into special expenditures for each year out to my life expectancy, and change it later if we so decide?You got it exactly right. The insurance you've purchased for your children is a special expense.

Best,

Dick Munroe