Perhaps you worry about what would happen to your loved ones if you had an incapacitating illness or died unexpectedly. The good news is there are steps you can take now to protect those closest to you. Whether it’s naming financial beneficiaries or creating a health directive, you can create a plan for your estate.
Set Up Life Insurance
One of the best ways of providing for your loved ones is to secure a life insurance policy. It isn’t a replacement for you, but it might replace a bit of the income you bring in. The payout is also helpful for covering debts and funeral expenses. In the long-term, it might help with housing, food, or clothing. And if you have dependents, your beneficiaries might use the payouts to help cover college educations for them. Getting a policy now can enhance your loved ones lives. There are many coverages amounts to choose from, allowing you to pick something that can help your family live comfortably. When shopping around for policies, you’ll want to do your research. For instance, you should learn about viatical settlements. It involves selling your policy for more than the cash surrender value. If you want to get cash out, you can review a guide to understand what a viatical settlement is
Create a Health Care Directive for Physical Care
If you’re unable to care for yourself, you can let your loved ones know what you desire by creating a health care directive. The document lets the healthcare provider know what you want when it comes to treatments designed to prolong your life. These treatments might include artificial hydration or the use of breathing machines. A healthcare directive will apply if you are permanently unconscious or have a terminal condition.
Ensure You Have Primary and Secondary Beneficiaries for Financial Accounts
When designating beneficiaries for financial accounts, like brokerage and retirement, you’ll dictate who receives the money if you pass away. For instance, perhaps you don’t want to leave the money to a past spouse. In that case, you could name one or more beneficiaries. Just make sure you review each account regularly, especially if there has been a death, marriage, or divorce in your family. Updating your online will is not enough to keep you safe from an outdated beneficiary. Remember, if the will and beneficiary designations contradict each other, the beneficiary designation will often prevail.
Ensure Minor Children Are Cared For
If you have underage children, one of the most critical things to ensure their future is under control to pick a guardian to raise them if you are unable to. The individual needs to be an adult who is willing and able to have the responsibility. It’s best to have a backup plan if the first individual can’t handle these responsibilities. Just ensure you communicate with the potential guardian first. You’ll want to explain the financial aspects, like whether there would be funds to support the children. Suppose you have a preferred way of raising the kids, like following certain religious traditions. In that case, the potential guardian needs to understand those.