In many families, one person ends up handling all the insurance and financial planning. It is usually the spouse who feels more financially confident or comfortable with paperwork. On the surface, this seems efficient. Someone is “handling it,” and the rest of the family doesn’t have to worry.

But over the years, I have seen that while this setup is common, it is not best practice and often creates hidden risks that only surface when it is too late.

One Person Often Handles Everything

Leaving all financial and insurance matters to one person may seem convenient, but it comes with serious downsides. When children are still dependents, both parents should understand the family’s coverage and financial plans. As children grow older, educating them about financial and insurance arrangements ensures they can manage their own affairs and know what provisions their parents have made.

When knowledge is concentrated in a single person, the rest of the family can be left unprepared for unexpected events. This is when confusion, missed claims, and financial stress often arise.

Real-Life Experiences Highlight the Risks

Over my years advising clients, I have seen firsthand the problems that arise when one person handles everything.

In one case, a husband worked in general insurance, and his wife assumed life insurance was “about the same.” Whenever a policy was presented and her husband said it was important, she signed without fully understanding what she was paying for. Years later, after needing a hospital procedure, she finally reviewed her insurance. She wanted to know if any of the many policies she had signed could help with her medical bills.

When we went through everything together, it became clear that her finances and insurance portfolio were in disarray. Most policies focused on death coverage rather than critical illness or medical needs. On top of that, a policy loan had been taken without her knowledge. In the end, there was nothing she could claim for her hospitalisation. What had seemed like efficiency years ago had turned into confusion and financial vulnerability.

In another instance, a husband was the sole financial decision-maker. His wife had little interest in the details and trusted him to manage everything, including claims. When he suffered a stroke and slipped into a coma, she had no idea which policies existed or how to access any support. She was a homemaker with two young children and suddenly faced both emotional and financial strain.

I spent many hours going through every policy with her, explaining what each one was for, and helping her complete claims so she could receive income support. She quickly realised how precarious their situation had become simply because all the insurance knowledge had rested with one person.

How Families Can Avoid This Risk

Getting everyone involved in financial planning may not be exciting, but it is essential. For couples, the first step is joint participation. Both partners should meet with a trusted adviser who focuses on long-term financial wellbeing and avoids pressure-selling or conflicts of interest.

Each family member will have different priorities and goals. That is why financial planning should be treated as a partnership, not a solo responsibility. If someone is reluctant or uninterested, start with topics that matter to them — retirement dreams, travel plans, or future lifestyle goals. Once there is a personal goal in sight, it becomes much easier to connect it to budgeting, saving, and insurance planning.

Financial Planning Is About Preparedness

Insurance and financial planning are not just about numbers. They are about making sure every family member is informed, empowered, and prepared, especially when life does not go according to plan. When knowledge is shared, families can handle unexpected events with confidence. When it is not, even the best-laid plans can unravel at the worst possible time.

If only one person understands the insurance, it is a silent risk worth addressing sooner rather than later.

What You Can Do About It

The good news is that this silent risk can be managed. Families can take steps to ensure insurance and financial planning knowledge is shared, understood, and actionable by everyone.

Start by having open conversations with your spouse or partner about the family’s insurance and finances. Attend meetings with a trusted adviser together, and make sure each person knows what policies exist, what they cover, and how to make claims.

Involve children gradually as they grow older so they understand the family’s financial plans and can take over responsibly in the future. Use practical tools like a central document folder or digital records to make it easy for anyone to access key information when needed.

By turning insurance planning into a shared responsibility, families can reduce confusion, prevent missed claims, and be better prepared for life’s unexpected events.

With Havend’s InsureWell Assessment (IWA), we guide families through this process, helping you understand what coverage you really need and ensuring everyone is informed and empowered.

Reach out for a complimentary InsureWell Assessment today. I look forward to hearing from you!

This is an original article written by Amanda Wong, Insurance Specialist at Havend.