Undoubtedly, thinking about life-changing events that can disrupt the financial, health, and personal balance you worked so hard to achieve is taxing. Yet, especially if you are a proud breadwinner, coming up with an invincible plan to look after your family in the toughest moments can offer you unparalleled peace of mind.

Even for the most committed organizer, trying to dodge all possible obstacles and foresee any future scenarios can be scary. What if you missed something out? What if you have inadvertently overlooked a turn of events?

You could be a naturally-gifted problem-solver or still trying to make sense out of the grove of ominous terms such as “premium”, “beneficiary”, and “underwriting”. Whatever the case, there is no need to panic!

Start Planning Early

Failing to prepare is preparing to fail. This might be a cliche, but it’s a cliche for a reason. If you want to secure your family’s future with a robust backup plan, you must start planning everything as soon as possible.

This is relevant if you have kids, don’t have kids, or have some kids but aren’t finished yet. No matter your current situation, you need to consider what will happen when (or more likely in the current climate, if) you stop working, at least full time. A Free retirement planning budget is one of the best ways to do this, even if you’ve not hit your career peak yet. If anything, it’s better to start now when you’re not earning as much money as you will eventually, as it will allow you to be more careful with expenses and other luxuries.

Sure, it’s less than the most exciting thing in the world to get serious about budgeting right now, but it will put you and your family in a more confident position later on. You never know what financial emergencies you might encounter, so planning early gives you a buffer.

Coverage for your family

Whether you are caring for your spouse only or enjoy the companionship of an extended family, the future and stability of the ones around you cannot be left to chance. While your healthy brothers or sisters are capable of buying their insurance policies, your younger kids or elderly parents might not.

Insurance for your children

One of the last things any parent will want to think about is the death or illness of a child. Undeniably, such events take a significant toll on the mental, physical, and financial well-being of a family. Providing insurance coverage for your young ones’ life can avoid you having to face unbearable expenses related to a funeral of medical care.

Long-term care coverage

It is common to overlook this type of insurance plan until the moment of need. Yet planning to provide your elderly parents with around the clock care is essential. Medical and everyday assistance can be costly, especially if you need it for prolonged periods. Simply, long-term care coverage can help you with such expenses.
Coverage for yourself

Your family might be relying to some extent on you, your good health, and your ability to work. Planning for future scenarios that could affect your well-being, such as disability, disease, or even death, allow you to guarantee financial coverage for anybody that depends on you.

Life insurance

Simply enough, a universal life insurance plan provides your family with unparalleled protection. The policy you pick can be either permanent or term-based. The first one does not have an expiry date and will cover you through life. The second one is less expensive and designed to expire once your children are financially independent.

Health and Disability Insurance

While you might not be thinking about future obstacles in the prime of your life, accidents can happen. If you are not able to support your role as breadwinner or carer anymore, a disability and health insurance guarantees your family to benefit from a stable income.

Learn more every day

It is not uncommon to nod blindly in front of an insurance agent using sinister-sounding jargon. It is easy to think that you were supposed to know these terms and end up not asking for explanations. Yet, 48% of Americans would be more likely to buy life insurance if the policies were easier to understand. Nonetheless, picking the right plan for both you and your family is arguably the most critical decision to take. Educating yourself, asking clarifications, and exploring a range of options are only some of the duties associated with picking an insurance policy.

Bottom Line

Understanding these three coverages that you might need for your family is the first step of mastering the art of backup plans. While insurance policies can be intimidating at first, they can work wonders to put your mind at rest and enjoy the time with your family without additional worries. From here, the arduous task of navigating the sea of insurance policies is all downhill!

Greg Kononenko
Greg Kononenko

My name is Greg Kononenko and I am a full-time online blogger and owner of Dad's Hustle. I'm a dad, and my passion is to help other mums and dads to start their own "hustle" and improve the financial future of their families.

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