Hurricane Irma and Your Finances

As I watched the coverage of Hurricane Irma today I began to think of the importance of protection in one’s financial life. Are you and your family properly insured against loss? Not just loss from disastrous weather, but financially protected. Below are some ways you can protect your family from financial loss:

  • Do you have proper life insurance? If you are married or have children, life insurance is a MUST! The loss of your life or the life of your spouse can trouble the financial waters in a hurry. Be sure you have adequate term life insurance. A good benchmark is about 10 times your annual income. Example: $50,000 salary = $500,000 in coverage.
  • Do you have an Emergency Fund? A good starter emergency fund is $1,000. This should be in a savings account SEPARATE from your checking account. There are some online savings accounts that can be linked to your checking account.
  • Do you have a will? Do not out an added stress on your survivors by not making your wishes known in a will. A decent will can be done by an attorney for $500-$1000. If you leave no will your survivors and heirs will be double whammied by the emotional loss of you and the extra stress of how to distribute our assets.
  • Do you have health insurance? Living without health insurance can put tremendous stress on your life. Without health insurance you may neglect or ignore your health problems for financial reasons. The number one reason for bankruptcy is medical debt. Don’t put yourself and family under the stress of no health insurance.

What issue did I leave out? Please share in comments.

 

Life Insurance

If you are married and/or have children you need to make sure you have adequate life insurance. The best type is term life insurance. It is very cheap and will cover the unexpected events in life. We are not guaranteed tomorrow. You don’t want to leave your surviving family with the stress of worrying how the bills will be paid after you die. A good rule of thumb is to get insured for 10 times your annual income. Example: If you make $50,000 annually you will need to seek out a $500,000 policy. If you are in good health and in your twenties or early 30’s this may only cost you $25-$30 a month. This is not much to pay and it gives you peace of mind knowing your family is prepared for the unexpected. A couple of reliable sites to get competitive rates are:

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Zander Insurance

When applying for life insurance you will be asked LOTS of questions about your physical health, age, etc. This is just a necessary part of the process.

Jeff Rose of Good Financial Cents shares 10 top insurance companies.