When Loss Isn't Expected, Planning Provides Protection

With the unexpected passing of Senator Lindsey Graham making headlines across the country recently, it is an unfortunate and poignant reminder that even those who seem healthy one minute may be gone in another. Life is an unexpected journey where we cannot plan when certain events may happen, such as divorce, disability, and death. While we cannot predict with certainty when or if such events may occur, we can plan for their likelihood to better prepare ourselves and our loved ones for major changes.

In our recent blog post, titled The Financial Risk Often Overlooked in Marriage, we discussed the importance of remaining financially diligent throughout your marriage. For some couples, this may mean staying financially autonomous, while for others it is remaining aware of their combined and individual finances and ensuring things remain equitable before a relationship potentially turns sour. Practicing financial diligence throughout a marriage benefits both partners and is one way to prepare for an uncertain future.

When it comes to our health, we often assume we will never face a major injury that leads to temporary or permanent disability. However, the Social Security Administration’s data on Americans shows that one in four Americans at age twenty will become disabled before reaching retirement. Furthermore, disability may last months, years, or the remainder of one's lifetime, and as one of our previous blogs discusses, it is important to protect your income.

For those who are still working, many employers offer discounted short-term and long-term policies for their workers that do not disqualify those with pre-existing conditions. While not everyone has access to such open and inexpensive employer-sponsored plans, plenty of self-insured options exist with varying levels of coverage and premiums.

Once you are retired, long-term care insurance is another way to protect yourself and your loved ones should your health deteriorate unexpectedly, since Medicare can fall short in providing the care you want. Our blog post, How To Navigate Long-Term Care Insurance, gives a quick introduction to why this type of insurance is so beneficial.

Moving on to the most somber of the three topics we outlined at the beginning of this post, death is often most challenging to prepare for. Depending upon your age, preparing for death and helping protect your loved ones may look different.

For those who are still working, accumulating assets, paying off debts, and raising kids, term life insurance is a great way to ensure your family has the financial means to cope if you pass away unexpectedly. However, for those already near retirement or in it, an estate plan is essential for ensuring your wishes are carried out and that your loved ones benefit as you intended.

While nobody expects divorce, disability, or death in their daily lives, we are often reminded how real it can be when it is too late to plan for. By taking a proactive approach to keeping your finances in order while the going is good, you can make things go more smoothly when the road of life gets bumpy. If you are unsure where to start when it comes to remaining financially diligent in your marriage, how to protect your family with disability insurance, how long-term care insurance can ensure you live out your remaining years as you envision, or creating an estate plan, we are here to help.

At Lundeen Abrams Advisors, we help our clients plan through the various stages of life so that they have a better chance of achieving their goals. So please reach out to us today and set up an appointment, because now is the time to act.