As a loved one, you want the best for your family and friends. But life happens, and unforeseen circumstances can make things very difficult. During these times, your safety nets become an essential part of your personal plan.
They can take many different forms – some are savings accounts, others are trusts with pre-set conditions. Whatever form they take, you must have a safety net for any potential crisis that could cost you or a loved one dearly.
A Will That Covers All Your Assets
Looking after family is at the top of all parent’s lists. Unfortunately, you can’t take your assets with you when you die. So it’s important to make sure they get to the right people. This is where a will comes in. It’s a legal document covering who will inherit your assets – including property, investments, and life insurance policies. A will also cover guardianship for any minor children you have. Make sure you review your will from time to time to ensure that all your assets are still there and up to date.
A Disability/Caregiver Plan
Sometimes there’s nothing you can do or no amount of savings that can prevent you from becoming disabled or caring for a loved one who is ill or elderly. A disability plan will help you get through this challenging time by providing you with a steady source of income. It can also help with the cost of care for any loved ones dependent on you. A disability/caregiver plan is a little bit different from a life insurance policy. With a disability/caregiver plan, you’re usually paying a monthly premium into a savings account. Once you have enough money in the account to cover your monthly payments, you’re covered.
Life Insurance
Life insurance is one of the most crucial safety nets you can have. It’s designed to provide your loved ones with financial assistance after your death. Most insurers will want to see a good health history on you, including a clean bill of health from your doctor. A good trick to get around this is to show your doctor that you’re planning to get life insurance. They may be more thorough with your physical. If you want more information on insurance available to you, check out the reputable company from Shawn Meaike.
An Irrevocable Trust
An irrevocable trust is a legal document where you put your assets in the trust. But unlike a will, the trust isn’t designed to pass your assets to specific people. Instead, the trust is generally used to benefit a particular cause. For example, irrevocable trust allows you to put your assets in the trust for your children. Then, if something happens to you, the trust funds can be used to help take care of them. An irrevocable trust is a great safety net because you can take your assets from your name. This will help protect them from creditors and potential lawsuits.
Long-Term Care Insurance
Long-term care insurance is designed to cover the cost of nursing homes, assisted living facilities, and in-home care. In many cases, the person who needs the care will have a pre-existing condition covered under the policy. If you have long-term care insurance, you can use it to reduce or eliminate the amount of money that your loved ones have to pay for your care. Long-term care insurance policies can be expensive, but they are definitely a safety net you should have in place.
Unexpected Medical Care
Medical care is often incredibly expensive, and the costs can increase seemingly overnight. An unexpected medical event can quickly drain your savings account and leave loved ones with a huge bill. A medical emergency fund is designed to help you pay for unexpected medical care and give your loved ones financial assistance. You can take the money out of the fund if you need it without draining your savings account. This is important as you’ll need those savings to pay for basic living expenses until the medical bills are paid off.
Have An Emergency Fund
An emergency fund is your last line of defense. You can use it to pay for unexpected bills and help out a loved one until they get back on their feet. An emergency fund is intended for emergency situations – like a loved one losing their job, a major car accident, or the roof leaking in your home. There will always be challenges and uncertainties in life. But with these safety nets in place, you’ll be better prepared to handle them. Your loved ones will also be better prepared because they’ll know where to go when they need help.
