couple with baby and laptop - protect your family income disruption - financial planning farmington
  • By Emma Andrews
  • Posted May 7, 2020

How to Protect Your Family Financially From Disruptions to Your Income

It can be uncomfortable to even imagine a catastrophe which would disrupt your income and hinder your ability to provide for your family. But you can protect yourself from many of the negative consequences that come in a financial crisis if you take time to set up a financial plan.

An Emergency Fund

The first and most simple way to guard against financial disaster is with an emergency fund. An emergency fund will let you keep paying your bills even if you lose your job. Start creating an emergency fund by calculating how much money you need to cover your family’s expenses each month. Saving at least the money required to pay your bills for one month can give you peace of mind about financial emergencies.

You can start creating an emergency fund by setting aside some of your surplus income each month into a separate account. Using a separate account will help ensure that you have the money you need in an emergency.

Disability Insurance

If you are injured and can no longer work, disability insurance can help ensure you can keep paying your bills. Social Security Disability and private disability insurance can work together to help you in the event of an emergency. In addition to physical injuries, mental health conditions can also qualify you for Social Security Disability benefits. Although it would be extremely unfortunate to be injured, there are many organizations and systems in place to help you if you need some time to rest and heal from physical or mental injuries.

Life Insurance

In the tragic event of your death, life insurance can help ensure your family’s financial stability. Life insurance is important because it can help pay the bills as well as any debts your family would incur after your funeral. If you don’t already have a life insurance policy, there is still time to obtain one. On a happier note, life insurance can also supplement your retirement. There are many important reasons to have life insurance. Life insurance is necessary to financially protect your family from the ultimate disruption to your income.

Protecting your family financially starts with good planning. Financial planning isn’t time consuming, and will literally pay off in the long run. An emergency fund, disability insurance, and life insurance are great places to start in terms of financial planning. If you are unsure of how to get started, we can help you create a financial plan for your family. If you plan now, you will save money and save your family later.