In the event of your unexpected death or disability, your survivors will have greater security if you’ve thought through and acted on the following:
- Identify your insurance needs. Do you want to leave a legacy? Or is providing for the comfort of your survivors your main goal? Life insurance provides a lump-sum payment upon death. Term insurance purchased for a specific number of years is appropriate for most people. If you have significant real estate holdings, you may want a whole life policy that you’ll continue to pay premiums on for the remainder of your life.
- Clarify your wishes for your family—and your property—upon your death. Estate planning puts together a strategy to manage your assets at the time of your death. Proper planning is the difference between a seamless transfer of assets and a mountain of legal proceedings, tax filings and bureaucracy.
- Project your income needs if you were to become disabled, and buy income protection in the form of long-term disability insurance.
- Strategize your portfolio. Investment planning funds college education, and also provides assets for survivors.
Don’t assume financial planning is for when you are older. Take charge now. If you already have a financial plan and an estate plan in place, that is terrific! Just be sure to evaluate your plan periodically.
Financial planners are trained to take a broad look at your financial situation, while accountants, investment advisors, stockbrokers or insurance agents may focus on a particular area of your financial life.
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