Majority of us don’t want to talk about death and taxes. In reality, these two things are guaranteed to happen. We might as well accept the facts and get ready for them. What will happen if you don’t die quickly but, instead you get very sick or disabled? It is a terrible thing to happen but, it could. How would you prepare for death or disability?
Ultimately everyone dies, so you need to have life insurance for the family you left behind. At a minimum it should be enough to cover funeral expenses. If you still have young children, the coverage should take care of them for years to come. If you’re old or all alone, you won’t need much. There is no need to insure young children since you reside in the U.S. where young children’s mortality is fairly low. Besides, they are not the breadwinners.
Most life insurance policies are sold to us by relatives or people we know. We’re they really concerned about our future well-being or just the commissions they received? You don’t have to sign any policy unless you understand it. Get a second opinion from a third party. Find something that fits your need. Don’t be bullied by high pressure agents even if they’re family. It is your money and future.
Buy insurance to protect you from events like disability or death. If you want to invest money in the market, deal with a licensed broker or financial representative. Your agent may not be licensed to sell both life insurance and securities for the investment of your hard earned money.
How many of us have updated Wills? It is tempting to have a generic one from the internet but, it’s a good idea to sit with a lawyer. You don’t want the probate court to make future decision for the assets you left behind. Have a simple Will to fulfill your wishes, assign a guardian to minors and to designate a trusted executor. Discuss with your family how your personal effects be handled. Make sure somebody knows where to find your Will after you expired.
The advance health-care directive or Living Will might be needed to instruct your end –of-life care. Do you want to be kept alive through artificial respiration and feeding if your breathing or heartbeat stops?
As you get older, you may become incapacitated where you need an “Agent” to make legal and financial decisions for you. It has to be somebody who knows how to manage your finances. For this agent you need to have a signed Durable Power of Attorney.
You may also need a Medical Power of Attorney to designate any adult to make medical decision for you in case you are unable to make them yourself. Find a person you believe who can stay calm in a crisis.
Some of us may not have Life insurance, Power of Attorneys or Living Wills. A few may have Living Trusts but never updated for years.
If you are an employee, you may claim for disability or workers comp if you ever get disabled. Self-employed should also buy disability insurance.
What would happen to your love ones should you die or get severely disabled tomorrow? None of us will live forever.