Just How Expected Is Unexpected, Question Is – Are You Prepared Today?

After working as a Financial Planner for the last two and a half years and being able to come across many real life situations with regards to insurance death claims – I have recently witnessed two death claims whereby

• a guy in his late 40s whom lost his dearest wife and is in a total loss and 
• another case whereby the family is with mentally handicapped children and the wife is left with no insurance monies as the hubby has never done up any insurance coverage before…

I just have this sudden feeling to blog about this…

And I will be talking about something that most of you will not be interested to talk about – Death! Death is something that is so expected and one fine day you or I will just forget how to breathe. It’s just a matter of time as well but we do not know when is that time – that’s all.

That’s why my blogging topic is with regards to something that is so expected (it will come eventually) but yet so unexpected (you do not know when it will come), and the big question is how prepared are you today? Yesterday is gone and we are still alive and this is something good and tomorrow is still something worth looking forward to.

So should really anything happen today, how prepared are you and your family?

And when I mean prepared, is not with regards as to whether you have all your friends or family members ready to take care of your funeral but rather on the financial aspect – will your sudden death be an asset or a liability to your dependents?

Will I Be A Liability To My Dependents?

If you have no idea what does it mean by dependents. Basically Dependents are people whom depend on you (or your income) for your living, e.g.

• Your parents who depend on you for their retirement or medical expenses
• Your spouse who depend on you to take care of the family daily expenses
• Your children who depend on you to provide them with an education and a dream to look forward to

And you have automatically become a liability to these people upon your demise when you

• Have outstanding credit card balance or any loans especially the home mortgage loan repayments
• Have outstanding medical bills (that you have chalked up during your treatment terms but failed to live through it)
• Not enough savings for your children to go through their education
• Have to make your Spouse work doubly hard (to start working or additional job) to take care of the family daily expenses and/or to take care of both side of parents

So, at your death bed, would you want your family members be talking all the bad stuff and the hardships you have brought upon your family or the possible good stuff like:

How Do I Become An Asset To My Dependents – In the Financial Planning Aspect?

1. Have a Medical Insurance and Critical Illness Plan to cover most of your medical bills and specialized medical treatment – leave no traces of medical bills!
2. Plan for your Parents – if they have a certain amount of daily or medical expenses, take this amount into consideration (in terms of an annual amount) and multiply by a rough guide of suriving terms for your parents (male can live till an age of 80 whereas female till an age of 88)
3. Plan for your Spouse – calculate the amount your family is spending (not counting in yours) in a month and multiply that annual amount with at least 5 years in consideration. This 5 years can help your spouse to get over your loss and to start looking forward with a new job.
4. Plan for your Children’s Education – based on your youngest child’s age and the gender (in Singapore’s context, male will be going to the University at age of 21 whereas females at the age of 19), get the remaining age to university, factor in the education inflation rate and multiply to the current education fees.
5. Plan for your Outstanding Debts – there’s such a insurance plan known as a Decreasing Term which is cheap in premium. Consolidate all your debts and plan against it. You will never go wrong!
6. Believe in Planning and Plan For It Today! Tomorrow is something worth looking towards to and still is and somehow unknown. That’s the reason why you need to start planning today!

If you do agree the importance of the above planning and have done so today – it may not be 100% planned for but at least to a certain extent – do you think, at your death bed, will you still be complimented that you have done something good in the days that you are alive?