It is near impossible to even try to comprehend the sudden complexity of a severed relationship, not to mention the continuous roller coaster ride that the parties involved would be taken on. Survival mode would consist of a vicious cycle of unpacking one’s life and reconstructing it to give an impression of stronghold. Unfortunately, the facade doesn’t hold for long.
Grief, according to experts, go through five stages; denial, anger, bargaining, depression and acceptance. The question is “Where does logical thinking come in to pave the way for proper planning?” The answer is “Immediately.” Why? "Because any unexpected misfortune can happen at any given time, like death and disability.”
Early this year, I sat down with my *four children to discuss about what they will be getting should I die that day. Candidly, I told them that they will not have to worry about money. The death proceeds from all my insurance policies will be more than enough for them to continue to live a comfortable lifestyle and finish their schooling. I also shared with them one great fear lurking at the back of my mind from the very start of my roller coaster ride. “What If I didn’t die?”
DISABILITY
What will happen to our family income if I, the only breadwinner, am disabled?
I am a firm believer of proper financial planning, which means I spread out my eggs in different baskets depending on the objective I have set for myself and my family. (1)Bank accounts in at least 2 separate banks where money is easily accessible and payments for certain obligations can be coursed through. (2)A bank account containing 6 months worth of my average income in deposit as emergency fund and should be easily accessible as well. (3)A short term investment account which serves as my piggy bank and will be transfered out once it reaches a certain figure. (4)Managed fund investments for intermediate goals and long term goals. (5)Insurance policies with withdrawable fixed incomes and variables. These liquid assets will serve as sources for my family’s continuous income.
How can we afford treatments, doctor’s professional fees, medicines, etc.?
According to statistics, among the top 10 causes of death 9 are connected to an illness, which means 9 out of 10 people get sick before they die.
Even the most effective healthcare program can only do so much if one gets sick with a dreaded disease. Depending on the package availed, it provides the healthcare member the convenience of not shelling out the initial payments for the emergency room, treatments and doctor’s professional fees from his own pocket. But a healthcare package will not cover the income loss my family will suffer in the event that I am incapacitated or disabled.
The critical illness rider is a provision in my life insurance policies that I took full advantage of. I had just turned 40 when I was made aware of the benefits of this rider so one can imagine how costly the premium was already. However, my intention was to get the maximum coverage while my pocket and my health can still afford to do so. It is not the getting sick part that worries me. Stress, pollution and careless diet, among other factors, were already part of my lifestyle and these are culprits to one’s health deterioration. It is the recovering from an illness part that looms its ugly head and troubles me whenever the thought of getting sick comes to mind. The cost of rehabilitation and recovery on top of our continuous family expenses will depend heavily on the benefits I can claim from my healthcare package and critical illness coverage.
Can my children stay with me if I am permanently disabled?
When my children were still minors, I included a disability clause in my trust stating that in the event of my incapacitation, my children and I will stay with my parents. This will ensure that my family will still be together. Today, my children are matured enough to think independently and I have confidence in however they decide to resolve family issues; it will always be for the best of our family.
**DEATH
Who will care for my children?
Can I ensure that my children will stay together?
How will my children afford proper education?
How will my children afford a comfortable lifestyle?
Will my children inherit 100% of my estate?
Proper financial planning, though should be done immediately, should not be decided on and executed when one is emotional. In this regard, it is best to seek the assistance of a licensed professional; someone who has years of experience in helping others create their personalized plans and has successfully done her own as well. Call our office today.
*Jewel just turned 21, Crystal 19, Joshua 18 and Jem was 14-1/2.
**You will find my answers to these questions in Part 1 of this two-part blog series.
linkiNG you to opportunities,
Lessons from a Single Momma is a series of blogs that allows the writer to share her blessings and the lessons she has picked up along the way with the public. Death and Disability. Now what? was inspired by the article “5 Things Single Parents Need To Consider About Life Insurance” written by journalist and fellow blogger Abby Hayes for Credit.com.