You probably already protect yourself financially with home, car and health insurance. However, when it comes to protecting a key asset — yourself — do you need life insurance if you have no dependents?
Many of us are taking on more risk than we realize, but the good news is that this situation can be easily improved.
You can better protect yourself in three ways, even if you do not have dependents. Here’s what to know and how to get started:
1. Life Insurance
Life insurance replaces a breadwinner’s income so that dependents are provided for if the worst should happen. Another sometimes-overlooked purpose of life insurance is to replace a caretaker’s services. A stay-at-home parent might provide childcare; money to hire professional services would allow dependents to be taken care of. Other reasons include leaving a legacy.
2. Long Term Care Insurance
Long-term care insurance provides coverage that will pay for assisted living, nursing home care or home health care in the event you are unable to care for yourself because of a chronic condition or disability.
3. Emergency Fund
A savings account with three months’ to one year’s worth of expenses will tide you over in a variety of circumstances, such as unemployment, injury, illness and parental leave.
Having an emergency fund can also prevent you from sacrificing long-term goals like retirement savings or college funds.
Remember: Creating a basic will and keeping beneficiaries up to date is also an important part of planning for the unexpected. This makes sure your assets go where you want them to go.
Want to learn more about combining all three of these into one plan? Contact us here.