14. Life Events that Endanger Wealth

As you go through life, you sometimes experience events that endanger or threaten the amount of wealth that you have accumulated. We have already discussed the importance of obtaining an individual disability income policy in the event of physical disability, and we will discuss how to plan for your own possible mental incapacity later in this chapter. Specifically, however, we identify important planning considerations with respect to six potentially financially devastating life events, including divorce, the loss of a job for an extended period of time, the death of a spouse or life partner, a parent incurring a debilitating condition, caring for a developmentally disabled child, and physical or mental incapacity.