Most people will do anything to keep their family safe. But, many do not think about what they can do to keep their family financially safe. In today’s world, it is essential to have a financial plan in place in case that a family no longer has an income to support it. While there are several things that can be done to protect your family, this article discusses two of the most important ones: Paycheck Protection Insurance and building your savings. Both of these will not only protect you from unforeseen circumstances but will give you peace of mind.
1.) Paycheck Protection Insurance Is Crucial
Paycheck Protection Insurance is a product that many people do not know exists. It is also known as Disability Insurance and Income Protection Insurance. This kind of insurance protects your paycheck by continuing to pay you a portion of your income even though you are not working due to an illness, injury, or disability.
This is important to have because it protects the family. The insured person will get paid benefits (money) by the insurance company that can be used by the family to continue paying for the mortgage, groceries, bills, child care, etc. Without having this type of coverage, the family is at risk for going into debt, losing their home, credit card debt, and having to borrow from others.
This money helps tremendously while the insured individual is recovering from their illness/injury and while the family secures an income once again.
Paycheck Protection Insurance can be obtained from your employer. But, it is highly recommended to invest in it through a private Paycheck Protection Insurance advisor. They are able to customize an insurance policy for you that will financially protect you when you really need it.
2.) Build Your Savings AKA Your Emergency Fund
The next most important thing to do to protect your family is to start building your savings, which is also going to double as your emergency fund. If you have already started saving, then the best thing to do is to continue adding to it at least on a monthly basis.
TIP: While it may be hard to set aside money nowadays, it may help to arrange for a pre-determined amount to be taken out of your paycheck and put into a separate savings account on an automated basis. This way, you never “see” that money and it gets put away into your emergency fund.
Building your emergency fund is key. Although, Paycheck Protection Insurance will provide you with money, having extra money in your savings will allow you to pay for the things you and your family need and want while you are not working.
Invest In Your Family Today
Our experienced advisors can help customize a Paycheck Protection policy for you and your family. We take your preferences, budget, and lifestyle into consideration to fully protect your loved ones.