Protecting one’s family is a vital aspect of parenting, and every parent has their own unique ideas about what it means to keep their loved ones safe.
As a parent, you feel the need to protect and keep your children safe, especially in the early stages of their development. During this critical period of your children’s lives, they wholly depend on you for everything, including food, clothing, shelter, and protection from the outside world.
In protecting their family, some people prioritise emotional and mental well-being—something that’s certainly laudable. However, it’s also crucial to remember the practical side of things.
Financial security is a key component of protecting your family. This involves ensuring that there is enough money to cover living expenses, pay for medical bills and your children’s education, and save for the future.
But how do you protect your family financially? How do you prepare for possible financial hardships or challenging situations that can drain your funds?
The importance of financial planning
If something drastically goes wrong in your life, do you have plans and policies in place to ensure that your loved ones are financially secure even when you’re no longer able or around to provide for them?
As a parent, it’s natural to worry about worst-case scenarios happening to your family, including:
- A family member becoming critically ill or requiring long-term hospitalisation
- Someone becoming handicapped or passing away
- You, your partner or both of you becoming jobless
- Losing all your savings in a scam
While these thoughts can be difficult to process, it’s crucial to plan for them.
Financial planning can help ease some of the anxiety that comes with these what-if questions. And to ensure your family’s financial security in the worst-case scenario, it’s crucial to not only have savings and investments but also insurance.
Some examples of essential coverage designed to keep families financially protected include:
- Life insurance
- Critical illness coverage
- Family income benefit insurance
These insurance policies help to ensure your family’s living expenses are covered while also providing them with an income and giving them the ability to pay off a mortgage.
Another important document that can help you secure your kids’ future is by leaving a legal will detailing whom you plan to entrust their care to in the event of your death. Doing this can prevent serious disputes from arising, especially when you have a sizeable estate and your children are still minors.
Start preparing today for a secure tomorrow
Planning for the future is just as important as preparing for parenthood.
There are things you can do today to achieve financial security, such as saving, budgeting wisely, investing, and purchasing insurance policies.
The earlier you do these things, the better you’ll be able to protect your family against financial uncertainties and challenges.
Seek advice from a financial advisor to help you with planning and selecting policies that are suited to your situation.
If this article has inspired you to think about your own unique situation and, more importantly, what you and your family are going through right now, please contact your advice professional.
This information does not take into account the objectives, financial situation or needs of any person.
Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation or needs.