Having a Financial Backup Plan

4 Jul 2016

Your personal financial plan would be derailed due to:

The death of primary or one of the breadwinners –Needless to say this one event can take you from home to street. Did you check the nomination and beneficiary info of your working spouse’s investments? Do you know if the primary bread winner has sufficient insurance coverage?

Job loss – Here’s something else to think about - accidents, injuries, illnesses or other circumstances could force you to leave your job sooner than intended. If your job ends prematurely, your regular income, benefits and retirement plan contributions usually end with it.  

Economic slowdown – More people will jobless, do you have enough back up financial plan to survive?

Severe illness – Illnesses that take away the ability to work is a serious threat to your ability to manage finances. When you can’t work to earn the living you need to have protection against disability.

Unpredictable event - For many families, continuity of income is dependent on the continuation for life and health of the breadwinner. Life insurance guarantee adequate family income in any unpredictable event

What the backup plan should look like

Backup financial plans should center around insurance, beneficiary, nominee and alternative investment or savings options. An ideal and full proof backup plan should also consider. Most importantly, this backup financial plan should be in writing.

In computer document or on a piece of paper, write down the various financial disorders that you may face. Then write down the backup plan against each of such items. Make sure you have insurance coverage that can cover yourself, your family, your vehicles and your health.

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