by Emily Ronald
This might sound like a trivial choice but, surprisingly, many Americans choose to continue to sit down with a beer to watch football while leaving their family dangerously exposed in the event of a catastrophe. It is true that many face a much tougher immediate choice such as whether to pay the rent or buy some food this week, and it is sad that the economy has driven many to these tough choices.
Failure to consider protecting your family can have some really dire long term implications, and I’m sure none of you would wish your children to be facing the rent or food choice just to enable you to enjoy the end of the big game. Some families might be lucky and be able to save the money just by making a credit card transfer or searching for better deals on their insurance. Others will need to think carefully about their priorities.
It’s Too Expensive: Don’t You Know There’s A Recession On?
One of the most common objections financial advisers receive when they talk to their customers about protecting their family is that they simply can’t afford it. Let’s take a look at some of the common things that families protect or spend money on and how much they cost. When you see how much many are prepared to spend on their pets but shy away from paying to protect their own children you may be a little surprised!
1. Pet Insurance – $30 Per Month
Due to increasing pharmaceutical costs and the huge number of diseases for animals that can now be treated (albeit at a cost) pet insurance is an essential for many pet owners. They simply couldn’t afford the risk of facing thousands of dollars in veterinary bills with their budget already tight. Imagine how tough that budget would be if one of two incomes was to vanish entirely.
2. A Nice Coffee Twice A Week – $32 Per Month
It’s easy to forget how the little things add up sometimes. Dropping by your favourite coffee shop just a couple of times per week can soon add up to a princely sum. Before deciding that protecting your family is too expensive, don’t forget to consider those little things you could do without.
3. A Glass Of Wine Or A Beer With Diner – $40+ Per Month
We’re not suggesting you give up all the little pleasures in life but once again something that just costs you a buck at the time can quickly add up to a big chunk of your finances. There are many families where one individual spends way over $150 per month on alcohol – albeit in lots of easily missed small amounts as the month goes by.
4. That Amazing Cable Package – $100 Per Month
Just to complete our list and come back to our first point, many are spending a good sum of money on sports, movies and other cable or satellite entertainment. If the breadwinner passed away not only would that package be gone but all the food, drink and coffees would be gone too.
5. Protecting Your Family If You Die Or Become Critically Ill – From $20 Per Month
When you find out that $50,000 in critical illness and life cover is available for as little as $20 per month and you’re currently spending over $202 per month on luxuries maybe protecting your family isn’t so expensive after all.
What Types Of Protection Should Be Considered
Now that you’ve taken the bold step of revisiting your finances and are considering protecting yourself and your family in the event of your death or sickness it’s important to understand some of the basic forms of protection available and to get some good advice. This article contains some rough costings obtained from basic Internet searches, but to obtain quotes and advice for your individual circumstances you should seriously consider speaking to a qualified financial adviser.
An adviser will talk to you about making sure your children make it to college if you pass away before you have been able to save a sufficient college fund. They will help you plan for your own retirement and life in the event that you become critically ill or permanently disabled. Surviving years of treatment for an horrific critical illness only to find that you are broke and must sell everything you worked so hard for would be really tough – even tougher if you hadn’t even taken the time to find out how cheap the alternative is.
Emily Ronald is a writer and researcher living in London who specialises in financial sector. Her experience spans the last five years and has given her the chance to work with both large financial corporations as well as small scale charity groups and advocacy services.
Connect with NJTODAY.NET
Join NJTODAY.NET's free Email List to receive occasional updates delivered right to your email address!