Emergencies are a reality of life. Although you can’t predict when it can happen, it pays to be prepared.
From buying an insurance policy to having an emergency fund, there are many ways that you can secure yourself from life’s sometimes unpleasant surprises. All you need is the right knowledge and commitment to secure your life from its many uncertainties.
Here are some life emergencies that could affect your financial security, and the ways you can prepare for them.
1. Road accidents
Every time you go out, you put yourself at risk. Whether you are walking on the sidewalk or you are behind the wheel, the risk is always there.
This makes health and disability insurance and auto insurance a must for everyone. Although all drivers are required to have auto liability coverage, you can never be sure.
It is better to have your own coverage than to have to depend on the insurance of another person. In case you get involved in a pedestrian accident, you need to find a lawyer immediately to help you with your claims.
If you are behind the wheel when an accident happens, make sure that you have complete documents, from your driver’s license to your registration. Do not forget to also call your insurance agent as soon as possible.
2. Car breakdown
A car breakdown may seem like a minor incident, but a car breakdown in the middle of nowhere is no joke. Having to pull over in an unfamiliar place in the middle of the night, now that is a different story.
Prepare for this kind of scenario by having the following: flashlight with batteries, tools if you are quite the handyman, telephone number of a towing company, and some blanket, in case you will need to wait for rescue.
It is also prudent to have your car regularly serviced to avoid any road mishaps. Check your car before you go on a long trip. Ensure that everything is working well, your tires have the correct pressure, and that you have sufficient gas. Call your insurance company for roadside assistance if it is included in your policy or a towing company that you know.
Nobody wants to think of this kind of emergency, but it can happen. Markets crash, nations can go into recession in an instant. Companies go bankrupt and many people lose their jobs. This emergency is a nightmare for many families.
That’s why it is recommended that you always maintain an emergency fund with at least three to six months worth of your income. You can use this fund while you look for a new job.
Do not be complacent even if you think your job is stable. Strive to achieve at least $30,000 in your emergency fund. Put aside $500 of your salary or more every payday. The more you can put in your fund, the better.
It will allow you to have money to spend while you are in between jobs.
4. Illnesses and Disabilities
Nobody is invincible. You can sometimes fall ill or be involved in an accident where you will need to take some time off from work.
A temporary disability coverage in your insurance policy can help you at this time. You can use the cash out from your coverage for your treatment and therapy, or you can use it to replace your income.
This will help ensure that you can take the needed time to recover while your family’s needs are still supported.
5. Premature Demise
If you are the breadwinner and your family fully depends on your income, then you undoubtedly need life insurance.
A life insurance policy will be beneficial for your wife and your children when you are no longer there to provide for them. You may want to consider your children’s education when looking for a life insurance policy.
Make sure that the coverage will be enough to pay off remaining debts, such as a mortgage, as well.
6. Natural Disasters
Depending on where you live, the type of natural disasters that you will encounter may vary. From floods, tornadoes, and hurricanes, you must know what type of natural calamities usually occur in your place. If you can move to another state, then good.
But if you have no other option but to stay, you can prepare your entire family, just in case. Prepare an emergency kit with supplies good for five days in your office, car, and your home. Include some cash and phone numbers that you can call. This way, if you get stranded or you need to evacuate, you can do so without any second thoughts.
You can also check with your insurance agent which policies provide coverage for natural disasters. You can ensure your home through catastrophe insurance products that secure your property against natural calamities.
Of course, there are other life emergencies that you may possibly encounter. In all cases of emergencies, all you can do is to be vigilant and to be prepared. Being prepared allows you to navigate these emergencies with a clearer mind.