Sadly, my husband has just been advised that his cancer has moved to ‘terminal’ (he is only 48). We are devastated, but the reality is we have to make some hard decisions about where to go from here. Luckily, we have always believed in having life insurance, and that will more than cover the mortgage, so financially my boys (10 and 13) and I will be okay. But I want to make sure it stays that way. After ensuring we are debt free, I want to invest some money for the boys, and I am torn between AFIC shares and investment bonds. Any advice would be appreciated — we have so many decisions to make.
My heart breaks for your family.
The simple answer is “yes” — buy some shares in AFIC. But there’s nothing simple about your situation.
If I was your husband, my only wish would be to make sure that my family was financially secure.
So let’s grant him that wish.
Speak to his super fund immediately and lodge an application for a terminal illness condition of release, for which you’ll need sign-off from two doctors (one a specialist). This will give you access to his death benefit now, instead of having to wait.
Then, sit down as a family and discuss what you’re going to do. Now here’s the really important point — turn this into a life lesson for your boys. Explain to them that you’re going to be okay because their father is a good provider who made sensible financial decisions, like taking out adequate insurance.
When you get the payout, pay off the mortgage, put something aside for a final holiday together (or to pay hospital expenses), put three months of living expenses in a Mojo savings account (extra if you’re taking a break from work), buy your AFIC shares, and park the rest in a 12-month term deposit so you can allow yourself time to grieve. The best way to look after your sons is to be financially strong yourself.