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.