We all want a secure future for our family and key to this is financial planning. Most of us have a weekly or monthly budget in place, and know that if we stick to the budget there will be enough money in the bank to cover the bills.
Holidays, Christmas, car repairs and things like the kid’s school uniforms are also normally budgeted for, many people save for these items. However, studies show that many of us do not have any money in reserve for unexpected, yet common, events like serious illness, the loss of a job or the death of a close family member. These events cause a lot of pain, stress and heartache, which is often made far worse because these events put the family under extreme financial stress as well.
The wisdom of making funeral plans now
Nobody really wants to think about these awful events, so there is a tendency for people not to put the necessary measures to help them to cope financially in place. This is understandable and only natural.
However, ignoring the possibility is not a wise approach especially when it is relatively easy to make sure that your family has the money they need to cope. For most people the best approach is to invest in insurance policies to provide coverage in the event of a job loss, serious illness or a death in the family.
Buying these kinds of insurance will make a huge difference to your family. Provided you buy the right level of coverage, you and your family will have the cash you need even in the most difficult of situations.
Life insurance to cover the cost of a funeral
Life insurance is important and the right policy can provide you with serious illness coverage too. That way should you or your spouse become terminally ill your family will have access to funds to help you to cope with the additional costs of being ill and to be able to continue to enjoy life and spend precious time as a family.
With the price of funerals, continuing to soar funeral planning is becoming increasingly important. Most families do not much money sitting in their bank accounts. Currently, the average cost of a funeral, in the UK, is £8,000, and many expect that cost to continue to rise. As a result, many families get into long term financial difficulties when they have to find the money to pay for a funeral.
Put aside an emergency funeral fund
Saving regularly, so that you have a substantial emergency fund available is another way to take care of your family’s financial future. However, this approach is only a good idea if you can resist the temptation to dip into your emergency funds to buy a dream holiday or car.
I appreciate that this is a depressing subject, but, as you can see, not planning financially for these awful life events has serious consequences for you and your children. Therefore, it really is worth sitting down and addressing the issue of how you are going to provide financially for your family in the event of a job loss, terminal illness or death.