Catastrophe/Emergency Financial Planning

Preparing for an Emergency

How would your family financially handle a catastrophe – the death, disability, or incapacitation of a family member? You can either take personal responsibility for providing the money to deal with these issues or transfer the responsibility to another party, typically an insurance company. The following are common types of insurance you should consider (this is not a comprehensive list of all the types of insurance coverage):

1. Medical insurance. Pays for medical care at the doctor and hospital.
2. Life insurance. Pays a sum of money if the insured dies.
3. Disability insurance. Pays a stream of money if the insured is unable to earn income.
4. Long Term Care insurance. Provides funds to cover the costs of caring for an individual’s needs when they are not able.
5. Property & Casualty insurance. Provides funds to fix or replace a physical object (home, car, jewelry, etc.).
6. Liability insurance. Pays the claim in the event you are sued. There are many additional types of insurance based on specific needs and situations; consult a qualified professional to ensure your unique needs are properly addressed.

Ensure the policy documents and information are filed for easy reference. You may not be able to communicate information related to your insurance coverage when it is needed.