(BPT) - Life is full of surprises, and unfortunately, they are not always good ones. While you can never fully prepare for the unexpected, you can take steps to safeguard your family against the financial impact from these negative events. As you make resolutions for the new year, it’s the perfect time to make a financial safety plan for you and your loved ones.
“Nobody likes to think about what might happen in the case you are ill, hurt, or even pass away, but it’s important to make sure your family won’t have the additional strain of financial worries during such a difficult time,” said Joshua Police, executive vice president of Distribution and Business Development, Boston Mutual Life Insurance Company.
Here are steps you can take to be better prepared for an unexpected event.
Create an emergency fund
Experts recommend saving enough to cover three to six months of expenses in case of job loss, illness or other unexpected event. One way to start saving is setting up automatic deposits of a small amount from each paycheck into a separate account. That way you won’t have to think about it, and your savings will accumulate over time.
Plan for potential critical illness
When a family member receives a serious medical diagnosis, protecting your family with a financial safety net can provide peace of mind during such a difficult time. Boston Mutual's Critical Illness insurance, also known as Specified Disease insurance, protects you and your family should you receive a major medical diagnosis. Your insurance pays a lump sum benefit for a range of medical diagnoses such as heart attacks, cancer, diabetes and stroke, as well as many other health conditions. You select the amount of insurance you need and can afford. The cost does not increase as you get older, and there are also coverage options available for your spouse and children under age 26.
Be ready when accidents happen
Accident insurance provides financial protection for the unexpected, helping to protect you and your family when an injury occurs. While many health insurance plans will cover most major medical expenses, you can still be left with out-of-pocket expenses such as copayments, deductibles and other costs related to an accident. Boston Mutual's Group Accident Coverage or Employee Accident Option Plus Coverage can pay you cash when an accident happens, complementing your medical coverage by paying for covered medical services. When you file a claim, cash is paid directly to you, giving you easy access to the funds you need. Coverage is portable, so if you change jobs or retire, you don't lose your policy — you can take your coverage with you at the same rate. In addition, you can also choose accident coverage for your spouse and children under age 26.
With Boston Mutual's accident insurance, benefits are paid directly to you when you have a covered accident that causes a trip to urgent care or the emergency room, stitches, broken bones, hospitalization, physical therapy and much more.
Make sure you have life insurance
Getting life insurance to help protect your family is crucial for your peace of mind. For example, Boston Mutual's Whole Life insurance is permanent life insurance, lasting for the lifetime of the insured, provides protection against financial loss caused by the death of the person insured. Usually it's a lump sum payment, sometimes known as a death benefit, which is paid directly to a beneficiary. Unlike term life insurance, whole life insurance can build cash value for your family's future — which may be available for you to withdraw or borrow against in case of an emergency.
With Boston Mutual's Whole Life insurance, the protection is affordable and flexible. You choose the amount of insurance that makes sense for you, and that you can afford. There are coverage options available for you, your spouse, children and grandchildren. If you are single with no dependents, the flexibility of the whole life plan allows you to expand coverage to meet future responsibilities. If you change jobs or retire, you can take your coverage with you at the same rate. Your monthly cost and benefits are guaranteed for the life of your policy, and the cost does not go up as you get older. Your beneficiaries receive the policy's death benefits amount, minus any outstanding loans.
Thinking about potential scenarios that may cause a visit to the hospital for you or a family member may be scary, but by setting up simple insurance coverage options, you and your family can have peace of mind if something does happen. By taking a few steps now, you can help set up your family for future protection.
To learn more about how to protect your loved ones' financial future, visit BostonMutual.com or contact your benefits coordinator or HR department. For information on benefits available outside workplace offerings or if workplace benefits currently aren’t an option, visit BostonMutual.com/LearnMore.