What are the real financial emergencies in my life? How prepared am I ?
- If I got laid off tomorrow ( I did get laid off eventually ). Do I have a big enough emergency fund to tide myself over until I can get employed again?
- Not enough is my suspicion, but I am also hoping for a severance package, which is a dangerous game to play, because what happens if my company simply evaporates and has no money left to pay severance? This has happened to friends in the high tech industry.
- If I am in an accident or have a medical episode that incapacitates me, is my family taken care of financially?
- I have disability insurance (short and long term) so I think I am in not too bad shape there, but I think it might put my family in a tight bind if I had a permanently incapacitating medical episode (e.g. stroke).
- What if my wife suddenly was incapacitated what would happen then?
- I would then have to get help at home for my wife and for my young son. That may not be a huge hardship given I do have benefits at work, however, how much is covered, and getting help with my son is a direct cost I would have to pay for.
- If my wife or I pass on what happens?
- We both have a fair amount of life insurance, however, if we both passed on, what would happen to my children? They will have money, but who will take care of them? My will is not up to date, and I think in dire need of re-visitation.
- Am I prepared, if one of my children was incapacitated due to accident or illness?
- I think so, but then again, let’s hope I don’t have to find out.
Do You Have a Plan ?
How is your emergency plans both financially and for your family? Now is the time to start that plan, not after the Emergency transpires.