If you’re like many people, you buy insurance for your $400 smartphone but fail to insure something worth a lot more: the loss of your future wages if you suffer a long-term disability (LTD), arguably the most critical risk for you to insure.
You’re about 20 years old and you have great health, a good job and a bright future – and a 25% chance of becoming disabled before you retire. Surprised? It’s time to educate yourself on the risks in your future and what can happen to your finances and life if you don’t protect yourself financially.
Whether you are saving for retirement or a home, life’s unexpected problems can quickly derail all your hard work. That’s why having the right kind and amount of insurance is an important piece in any financial plan.\p>
The death of your spouse creates enough confusion without Social Security adding to the problem – which it does if you don’t play the benefits game right.
When you patch together the variations of survivor and personal benefits, remember that each has its own unique characteristics. The basics of qualifying for Social Security:
Baby boomers’ huge numbers and surprisingly shaky health threaten government old-age benefits. That’s why you need to bolster your own retirement finances more than ever.
Public policy experts question the sustainability of Social Security, Medicare and Medicaid as the baby boomer tsunami washes up on the shore of eligibility at the rate of roughly 10,000 a day.
Every day, thousands of Americans find themselves in a difficult financial situation after receiving a dire medical diagnosis. Even those with health insurance are at risk of disaster in the aftermath of a medical emergency. It is imperative that you proactively shield yourself from this risk.
There’s a Yiddish proverb: “Man plans, and God laughs.” Some of your best-laid plans quickly can go awry, especially for something as monumental as retirement planning. How can you recoup?
Confidence and positive thinking serves you well most of the time, but don’t let it stop you from preparing for unexpected catastrophes such as a job loss, serious illness, death or divorce.
As ugly as that sounds, it’s unwise to procrastinate or avoid making plans to get you through tough times. Here are some tough questions to ask yourself when developing a contingency plan:
· How long can I pay my existing bills if I lose my paycheck? What expenses could I cut?
If you are sick or injured, you likely have health insurance to pay for your care? But if you aren’t working because you are laid up, how will you pay your bills? That’s where disability insurance comes in. Sadly, too few are adequately covered.
Are you insured? Coverage is needed to protect you and your loved ones against any misfortune. Too many people are under-insured, and come to regret it.
One of the core foundations of financial planning is risk management. After all, what is the point of saving and accumulating assets if everything you worked for disappears because you forgot to get insurance? If you start a college savings account, the goal is for it to fund college expenses, not an emergency.