Finances are a major concern for many right now. While the economy is on its way up, there are still many families struggling to provide. You need to find ways to protect your family’s finances should something happen to either one of you—whether it is losing a job or the more serious death of a loved one. Here are six ways to protect your family’s finances.
Have Savings Accounts
Always put some money into savings. An emergency savings account is a great way to protect your family should something last minute happen. Your car may break down, the washing machine may be on the blink or the boiler may have packed in.
All of these can be seriously expensive to fix. You also want to save for the future. Help your children have the best financial outlook when they are a little older.
Invest in Life Insurance
You never know when something could happen. You could be diagnosed with a terminal illness, or be knocked down by a car. Your family would really suffer without you around—emotionally and financially.
Life insurance could really help them if something happens to you. It could be to pay off the mortgage or to pay for the everyday costs now that you’re gone. It is a little extra upfront each month, but really worth it just in case.
Another type of insurance you need is home insurance. This protects the cost of belongings in the event of a fire, theft or other type of damage. If you’re renting, you will need to looking into the renter’s version as you will not need the buildings cover as well.
Make sure you calculate the total cost of your belongings to work out just how much you will need in the event that everything is damaged or stolen.
Get the Right Medical Cover
Think about your medical cover. If your youngest child was ill and needed a trip to the hospital for a few days, would you be able to afford it? While many hospitals offer payment plans, you will be better off by having medical insurance.
Look into all your options and then look at the details. You may find you are limited to specific places to visit under the terms of your policy agreement.
Watch Out for the Debt
Don’t keep spending money on your credit cards. You may think you can pay it all off, but may find that it’s really not that possible. You end up spending thousands over the years on that $100 purchase.
The best thing you can do is only buy something you can afford. Save up for it beforehand.
Make a Will
Do you really want your family fighting over everything when you’re gone? Make a will and have everything itemised and named for the people you want to receive everything.
Yes, there are times that the wills are challenged, but more often than not a judge will follow your wishes.