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How to Protect Your Family Savings from Sudden Loss of a Loved One

It is necessary for any family to have its own savings. It can be for the kids’ tuition fees in the future, or a plan to get a new house and lot – whatever the case may be.

The fact is it is important that parents learn to save up early on in their family life, no matter how many kids they want to have or what lifestyle they want to adopt. Agreeing to have family savings will keep most parents from major headaches and financial woes in the long run. 

However, the reality is that there are unforeseen incidents that catch us off guard and throw us off our plans. One sad instance is the sudden loss of a loved one. It could be a serious disease that led to his passing or a tragic accident that would take a family member.

Sadly, oftentimes such tragedies also take most if not all of the family’s savings and financial investments. In such dire situations, having an emergency buffer fund or a backup plan is certainly a welcome aid.

6 Ways to Protect Family Savings

It’s only practical to think of your family’s assets in the event that someone passes away. Having financial problems will only add undue stress when the time comes, so it only makes sense to think about these matters before the tragedy strikes. In order to prevent using up your family savings in emergency situations such as hospitalization, funeral, and burial expenses, here are some ways you may consider:

1. Ask Professional Financial Advice

Try asking a professional to find out if there are details in your financial situation you haven’t covered yet. Losing a family member will be a shock, and during this time, it will be difficult to think objectively about assets. Try to understand your situation, and take note of the steps you can take to address it.

2. Set Up an Emergency Family Fund

This particular fund should be separate from your family savings, and its primary role is for emergency purposes only. It may be used during natural disasters, unexpected hospitalization, or the death of a loved one. Some experts believe an emergency fund should at least last three to six months’ worth of monthly expenses. Think of it as a buffer in case of a rainy day.

3. Apply for Healthcare Insurance

There are various kinds of health insurance, but the ones that matter most in uneventful instances such as death may be purchased voluntarily apart from the coverage that comes with employment. These policies can help cover any surviving family members in the event of an emergency. It’s generally a good idea to get health insurance apart from your work benefits anyway, so you can ensure permanent and tailored coverage.

4. Get Life Insurance

Obtaining life insurance will ensure the surviving dependents of the insured. Most families get life insurance for working members of the family in the event of an untimely death. Depending on the premium and number of contributions made, life insurance can help the surviving family live a decent life, and in some cases, even cover the expenses needed for their funeral and service memorial. Talk to a trusted financial advisor for the best plan that will work for your family.

5. Consider Funeral Pre-Planning

Funeral pre-planning is a relatively new alternative that is chosen by families that have a more open perspective when dealing with the reality of death. Service providers and suppliers are chosen beforehand to help ease the burden of family members at the time of their loved one’s death.

If you can have a healthy discussion about this with your family members, this is a great option to pick so that no one is shocked or scrambling for what to do in the event of the incident.

6. Make Pension Arrangements

Pension obtained from years of employment can also ease the financial burden of the surviving members of the family. Make sure that necessary legal arrangements are made beforehand. If the deceased failed to fix this before death, it will be more difficult to file claims in the future.

Protecting Your Savings is as Important as Having Family Savings

No matter how stable you think your profession is or how financially well-off you think you are, you cannot be sure that your family will be supported for life in the event of an untimely death. This is why it is vital to make the preparations while there is still time. It’s a difficult topic to talk about, but one that needs to be addressed. It’s never too early to start thinking of this.

Seeking professional advice should be a priority to be aware of the actual status of your family’s finances. Acquiring health and life insurance policies may also ease the burden of bereaved family members after a loved one’s passing.

Additionally, getting funeral pre-planning services could help ease the forthcoming problems in an untimely death. The family and relatives may even make financial arrangements for the associated expenses of the funeral. Leaving your loved ones behind is already too painful for you and your family. You don’t want to leave them with all the debts and financial obligations, do you?

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