The best thing you can do is plan for the unexpected. Here's how.
Death is a topic many families are uneasy discussing. However, in not doing so while you are alive and healthy you can place a huge financial and emotional burden on your loved ones.
Here are five ways for you to plan for the unexpected.
1. Update Your Insurance Plans
Sometimes, we sign up for life insurance coverage five or more years prior and never update it to reflect our new annual salary. Your plan should have enough to help preserve your family's lifestyle and provide enough for your funeral arrangements. Also, if you've gained more dependents, it should be adjusted for their living and college expenses. If you currently do not have life insurance, it's time to sign up. The older you are, the higher your rates will be.
2. Prepare Your Last Will and Testament
A last will and testament is your authorized document stating what should happen to your children and property and who the executor will be after you die. The less you have at stake, the simpler your estate will be. You can go online and complete your own. A notary public should sign off on this to make it a valid and legal document.
An estate planner or lawyer is advised to help you with your last will and testament if you have a large estate. Your designated executor will handle your estate, including your financial matters and property.
3. Meet with an Estate or Financial Planner
An estate or financial planner creates and/or reviews all your important estate documents. If you don't have your estate set up accordingly, your property could be turned over to the state if you don't have legal dependents. After it's all set up, be sure your executor and anyone who would benefit has a copy. At least they'll have a head start in knowing how to work on your final requests.
4. Make Arrangements for Your Dependents
You should have a plan for what will happen to your minor children and adult dependents. You don't want to think about passing on. However, it's worse once your family members or the court decides who should be their guardian. This is a major decision, so be sure you are the deciding factor. It'll be a trying time for your child, so do you want them to?be comfortable with the outcome.
5. Make Your Wishes Known: Outline Your Service
This may feel odd, but outlining or planning one's funeral service is becoming increasingly popular. For one, it's the best way to make your wishes known. You can select your flowers, pick your casket, choose your plot, and more. It also helps alleviate the headaches of your family trying to plan your service during this time of bereavement. Finally, you can have everything pre-paid so your family has no financial stress should anything get held up with your insurance policy.
Having a living will or living trust is very important for planning for the unexpected. This will covey your wishes and describe how your assets will be distributed. Also, if you have minor children, a living will coveys who will look after your children. Life insurance also helps cover final expenses or replace your income for your loved ones. Great article.