For many people, there is nothing more important in life than keeping your family secure. From their physical safety to their general health, happiness and wellbeing, your family is always your number one concern. But while you’re looking out for their safety, it’s also important to consider their financial security as well. Are they protected in the event of a loss of income, an economic downturn, or your untimely death? We might not like to think about these possibilities, but having a financial plan that includes these eventualities will help ensure that your family is secure no matter what happens. Here are 5 tips for keeping your family protected financially:
Decide what “financial security” means to you
We all have different circumstances that govern how much money we earn, and how we are able to spend it. So your first step is to figure out exactly what your needs are. You might want to begin by asking yourself what would happen if a primary breadwinner passed away, or was otherwise unable to earn an income. How much would you need to have saved to keep your family afloat until your spouse or significant other could earn enough to support the family on his/her own? What about college and long-term expenses further down the road? Answering these questions will give you a good idea of your basic financial security needs.
Fully review your financial situation
This is about much more than just weighing your income against your basic expenses. In order to get a crystal clear idea of your full financial picture, you need to consider everything. This includes income, assets, car payments, b mortgage, money in retirement plans, benefits packages, investments, Social Security, insurance payments and the aforementioned future expenses such as a college fund, wedding expenses, unexpected medical or funeral costs, etc.
If you don’t have life insurance, now is the time to look into it
We all want 100% financial security for our families that will last the rest of their lives, but unfortunately most of us simply can’t afford it on our income and savings alone. This is where life insurance can come in handy. Life insurance can replace your missing income in the event of tragedy, and leave money left over to provide for things like funeral costs and college tuition and additional savings. So when shopping for a policy, it’s important not to under-invest. You want to make sure you have a significant enough policy in place so that your family won’t have to worry.
If you already have life insurance, review your policy
Sometimes when we already have a life insurance policy, we tend to forget about it and just assume that it will be adequate when the time comes for your family to collect your death benefit. However, things change as the years go by and that old policy might not hold up anymore. Things like marriage, divorce, children, aging parents and relatives, medical costs, buying a house etc. can seriously alter your financial security needs. So if your policy isn’t keeping pace with your life, it’s time to review and update it.
Don’t forget about disability insurance
Life insurance can be crucial to your family’s wellbeing, but that doesn’t mean you should forget about other security measures as well. If your family depends largely or completely on your income, then disability insurance is key. Consider whether they would be able to pay the bills and cover your medical expenses if you were to become too sick or injured to work. Even if your spouse brings home a significant amount of the household income, losing your contribution could still be a huge blow to your family’s financial stability.
Get started with a quote today
Many people avoid shopping for life insurance because they assume it’s too expensive, or an unnecessary coverage, but those sentiments couldn’t be further from the truth. Use our convenient online tool to get life insurance quotes from top-rated companies and see just how affordable life insurance is.