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Age-gap couples need to pay more attention to finances

AFA Liz Koh has written this article for Stuff.co.nz describing some of the issues couples with large age-gaps can face when it comes to finances, including the value of life insurance dedicated to the tasks of providing for children shared with a previous partner, and makes a good point: 

'A life insurance policy taken out on the life of the older partner can free up funds to pay out first or second families on death...'

It is a valuable reminder of the fundamentals of life insurance as a way to create an estate and manage estate planning tasks elegantly: it encompasses both asset created, and the process for delivering the asset to the right people (if ownership is done right). With a declining liability (future support costs reduce as children grow up) it is always simpler, and usually more efficient than allocating capital today.

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