Family

Preparing for the Worst: Protecting Your Future and Family When Trouble Hits Home

baby-17369_640Even though you don’t want to walk around thinking the worst, being prepared for all eventualities can help you overcome the biggest challenges in your life. And financial planning plays a huge role in this. By putting the right things in place, e.g. accident insurance and critical illness insurance, you can make sure you and your family can get through even the hardest of times.

There are a number of voluntary benefits that bridge the gap between what you need in an unexpected circumstance and the medical insurance provided by your employer. These types of voluntary benefits include disability insurance, life insurance, accident insurance and critical illness insurance. Understanding what each of these benefits provides will help you work out what you need and how these policies will protect your finances at all times.

Critical Illness Insurance

Huge financial pressure can be placed on you when you’re diagnosed with a life-changing critical illness. Not only do you have to come to terms with the illness you have but how you’re going to provide for your family during this time. Your main focus should be getting better, but the financial constraints you’re placed under can soon take their toll.

However, with critical illness insurance, your provider will often give you a lump cash sum after you’ve received your diagnosis. Common critical illnesses covered include Alzheimer’s, heart transplants, strokes, heart attacks, HIV, major organ transplants, blindness and more. You’ll often be given the choice to add optional cover for cancer, too. Some insurers will provide support and guidance throughout the process as well, giving you peace of mind that your finances are being taken care of during this difficult time.

Accident Insurance

Your family’s finances can be severely impacted by an accidental injury, but accident insurance will cover a wide range of accidents and services by providing you with a cash sum as soon as it happens. This will enable you to get the right care you need as well as legal advice about your accident (learn more from TruLaw).

Life Insurance

Even though the thought of planning for your own death is incredibly morbid and won’t be something you want to think of, putting life insurance in place will help to protect your family financially. Life insurance can be customized to suit your individual needs and wants while making sure those who are left behind are able to continue with their life without being hampered by debts and outstanding payments.

These types of policies can also come with added coverage for dependents or spouses and can provide added support through financial planners, grief counselors, personal assistants, and legal consultants.

Disability Insurance

A recent survey, conducted by the American Payroll Association, discovered 68% of Americans would find it difficult to pay their bills if there was a delay to their paycheck. However, to prepare yourself for the time you’d need off work for a disabling injury or illness, disability insurance provides you with a steady source of income over a short- or long-term period. A lot of these policies will also come with support options for those who want to return to work or stay at work during their illness/injury.

Even though these insurance policies do tend to be more expensive than life insurance (because it’s more likely you’ll become injured or ill instead of dying early), there are some substantial benefits available.

Making Financial Plans

Even with some or all of these policies in place to protect you and your family, it’s still a good idea to make some solid financial plans. Putting together an emergency fund can help take some of the financial stress away from unexpected situations. For example, it may cover the time between your accident and the lump sum from your insurance policy being paid into your account.

Equally, it’s worth getting wills and a power of attorney put in place for the biggest worst-case scenario, especially if you have children. Make sure it’s clear who will benefit from your retirement plan benefits, life insurance and so on, instead of leaving it to the courts to decide. You might also want to consider doing a living will, which allows you to state your wishes for the end of your life, as this can make it much easier for your loved ones at this difficult time.

While putting together these plans isn’t easy, it can help to take away a lot of the financial burden that can arise when the unexpected happens, protecting you and your family throughout.

Oscar Hamilton works on reception at his local GP surgery and knows first hand how money worries can put an added strain on an already ill patient. He takes it upon himself to be prepared with information and knowledge to help the patients that walk through the doors whether in the real world or online!

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