Businesses recognize the importance of financial planning, and larger ones will have entire departments dedicated to this important aspect of keeping a business healthy. Individuals could also benefit greatly from doing financial planning related to their personal and family life.
Individuals should ask key questions like:
1) How would the remaining spouse cope should the other one die?
2) Is each spouse earning enough to keep the family going if the other spouse can no longer earn?
3) Is the family able to cope with an unexpected, major medical bill?
4) How will mortgage repayments be made if one or both partners lose their jobs?
Financial planning is all about having a strategy in place to cope with circumstances that radically change family or individual income. Most people do not like to look at the future in a negative way, and many are reluctant to think about tragedy striking. Unfortunately, it happens all too often.
If there has been no financial planning, a medical catastrophe that strikes the family’s major earner down can also turn into a financial nightmare. The victim’s family will already face incredible hardship dealing with the consequences of the illness or accident to their loved one. Piling a lot of financial pressure on top at a time when everybody is stressed out can be devastating.
Speak to an expert
It will not cost you anything to talk to an expert who can take you through the necessary steps in financial planning. You may be surprised at some of the suggestions that your adviser comes up with. For example, you may have already taken out life cover on you and your partner. However, have you considered that if your partner dies or becomes completely incapacitated that you may need to give up work to tend to your partner or your children. Will your life cover payout be sufficient to cover that?
Insurance plays a critical role in financial planning. It is one of the best ways of protecting yourself and your family from financial hardship. It can be difficult to get the right mix of cover, and to settle on the amount of cover needed.
A financial planning expert has loads of experience in dealing with people from many different backgrounds and with many different needs. He or she will be able to call on that experience to tailor financial planning to your precise needs.