Planning is valuable for many reasons and helps to ‘normalize’ things when you find yourself in the middle of an unexpected life event. A death, a critical illness, job loss, new family member, an inheritance, divorce, or a catastrophic event that can cause a major financial detour. How you plan will help determine how you survive and normalize after these events.
Planning can be as simple as making sure you have the right insurance coverage, from personal insurance such as medical and critical illness, to property insurance. All insurance is in place to offset risks, cover expenses, and protect other assets that you’ve worked hard to accumulate. Another step in planning is to make sure you have a will in place if something happens to you so that your loved ones know you want things taken care of.
As strange as this may sound, some people even go as far in their planning to offset risks to their financial plan. Another type of planning involves off setting risks that are health related. If you or a family member had a major medical event or condition, would you have the financial assets to cover all the expenses after the insurance company has paid and cover your loss of income related to the medical event?
With life’s constantly changing events, you may need to reassess your goals and plans for achieving them. In working toward your financial goals it is possible to run scenarios to see the outcome of life events and the possibility of how they may affect you. If you get detoured by a life event, or even a bad decision, planning (and previous planning) helps you to recover sooner to what felt ‘normal’. We all know life can be messy, and what you do now can help make the difference for what may happen later. No one can predict the future, but it helps to prepare ourselves as much as we possibly can.
If you would like to visit regarding planning for potential risks to being under-insured, please contact our office to set an appointment.
This update has been provided by Fresh Finance.