Additional Financial Protection for Your Family: What to
Know
Special to The Truth
It is hard to think about
death, but organizing your financial paperwork, having a
will, making sure you have an appropriate amount of life
insurance coverage and even writing out funeral plans, can
help ensure that loved ones left behind have a little less
to worry about during a difficult time.
Draw up a Will
Only 44 percent of
Americans report having a will, according to a 2016 Gallup
poll, and that percentage drops to just 14 percent for those
younger than 30. Even if you don’t own much, a will helps
family and friends know that they are following your wishes,
which can be comforting. If you have children or pets, it is
important to think about their future and who you want to
take care of them in your absence. Specify if you have
special directions regarding your funeral services, if you
want one at all.
Creating a living will is
also critical. You’ll want to give your loved ones some
guidance on making important health decisions, should you be
unable to yourself. Granting power of attorney to a trusted
agent in the event that you are too ill or incapacitated to
oversee your affairs is another way to help ensure your
estate will be properly managed under any circumstances.
Consider Life Insurance
Nearly 90 percent of
Americans believe that a family’s primary wage earner needs
to have life insurance, but only three in five U.S. adults
own an individual or group life insurance policy, according
to the Life Insurance Market Research Association 2018
Insurance Barometer.
“Life insurance can be an
important part of an overall financial plan. The money can
help your family fulfill your plans for them, such as
maintaining their current home, attending college and
assisting those with special needs,” says Bill Smith,
president, Cigna Group Insurance. (All Cigna products and
services are provided exclusively by or through operating
subsidiaries of Cigna Corporation, including Life Insurance
Company of North America, Cigna Life Insurance Company of
New York (New York, NY) and Connecticut General Life
Insurance Company.)
Smith also points out that
beneficiaries often have other immediate needs beyond
receiving a benefit check. Grief counseling or access to
legal document review may be available as part of the
policy.
Find out what resources
will be available to your beneficiaries and list those
details with your policy information to make it easy for
them to access this help.
And remember, if something
changes in your life -- you get married, divorced or have
children – you should update your beneficiary information
accordingly.
Organize Your Paperwork
Make it easy for your
family to handle next steps. Create a personal information
organizer containing the following crucial information to
serve as a quick reference:
• Personal family
information, such as the names, addresses, dates of birth,
Social Security numbers of spouses, children and dependents.
• Important contact
information, including your attorney, landlord, financial
planner, doctors, business associates, etc.
• A directory specifying
the location of pertinent documents such as your Social
Security card, birth certificate, passport, property deeds,
insurance documents, loan documents, tax returns, estate
planning documents and more.
Want to strengthen your
family’s financial well-being? Take steps now to help ensure
they will be well-protected, come what may.
Courtesy StatePoint
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