Everyone’s number one priority in life is to make sure their family is protected. Have you ever thought about how they would be protected if something happened to you? Protecting your family financially doesn’t have to be a concern if you follow these 6 steps!
Find Out What Financial Security Means to You
Financial security has a different meaning to everyone. To start, ask yourself what would happen if the primary breadwinner in your household happened to pass away. Would everyone else in your household be okay financially? Would they have enough income for a lifetime? Would they have to move out of your home? Would they have to transfer jobs? Would they be able to afford college for your children? Once you answer these questions yourself, you can start to putting together a plan.
Look at the Full Picture
Protection isn’t just about life insurance, but it’s also about your assets. You’ll need to look over these assets, you may have money in retirement plans, benefits packages, investments, social security, and the life insurance you already have in place. You will also have to look at other factors such as, are you and your spouse divorced? Do either of you have previous marriages with children you care for? Do you have a child with special needs that won’t be able to provide for themselves? Do you have your aging parents living with you? After you take a look at the full picture, you will be able to figure out exactly what you’ll need for life insurance.
Get or Review Your Life Insurance
Life insurance is extremely important if your children depend on you or your spouse financially; it offers benefits if the insured passes away in the family. If you already have life insurance, make sure to review it every once in awhile, especially if you have been through a divorce or have had another child recently.
Start an Emergency Fund
Unexpected events such as a job loss, property damage or a car repair can be very costly. Give yourself the comfort of knowing you can afford these surprises if they should come up. Put a little money aside every week to gradually save up.
Get Help If You Need It
As humans, our need for life insurance may seem straightforward, but it can be more complicated than we think. You may come across terminology that you don’t fully understand. Ask your insurance provider to sit down with you and thoroughly explain everything. They can help you step by step and come up with a solutions that you can afford.
Consider Disability Insurance
If you and your family mostly depend on your income, you need to make sure you have disability insurance. This type of insurance covers your portion of income if you become sick or injured and are unable to work. It could be offered as part of your benefits package through work, so make sure to double check with your HR department to see what percentage it covers.
Life Hack: Make sure to store all of your saved money, tax returns, mortgage paperwork, insurance policies, brokerage, 401(k) statements, Wills and important financial paperwork in a fireproof safe-deposit box in your home.
For more information on how to protect your family financially, contact Costello Insurance today!