Because the future is an uncertainty no one can predict, it is vital to prepare and get your ducks in a row for whatever life throws your way. We experience unexpected events throughout our lives. One example would be the COVID-19 pandemic. It was an unprecedented time for everyone around the world, and one we still continue to navigate through. Properly planning for their future via life and financial plans give you the ability to maintain peace of mind with any event that comes your way and ensure your loved ones’ financial well-being won’t be at risk. To help you, we’ve put together some of the plans you should not overlook to ensure you are meeting your current goals and never overpaying for services.

1. Life Insurance

You may have a life insurance policy, but is it the right one for you? While more and more people are getting life insurance, many are not thorough when picking their plans. In fact, over 30 million Americans who own life insurance policies don’t actually have the right coverage mainly due to the “set it and forget it” mentality. Life insurance is meant to properly reflect your needs as well as your income and unique situation. Not only do the needs differ for each individual, but your circumstances regularly change as well. The fact of the matter is that since your life is constantly changing, so should your life insurance policy. Different factors can determine the best life policy for your needs, such as marriage, mortgage, children, debt, retirement plans, and more. With this in mind, it is best to regularly review and modify your policy to fit your current lifestyle and stage of life.

2. Estate Planning

Estate planning is a financial plan that establishes how your assets will be safeguarded, maintained, and managed in the event that you pass away. Your assets can include your properties and financial obligations. Properly planning for this allows you to better protect what you currently have for your loved ones. The most important tasks of estate planning include writing a will, setting up a trust account, establishing a guardian, identifying an executor of the estate to oversee the terms, and making funeral arrangements. This way, you’ll be sure that both your assets and your passing will be all planned and accounted for. Keep in mind that estate planning is a continuous process that should be set up as soon as possible to avoid leaving any financial troubles to your dependents. If you’re having trouble navigating through what you need and what to look for, make sure to work with your attorney or agent.

3. Retirement Planning

Thinking about the future as elderly individuals can often be overwhelming; however, it doesn’t have to be that way. We all plan to retire eventually, and that’s a positive thing to look forward to, but this also means that we need to plan our retirement properly to make sure that those upcoming years are as satisfying as they can be. The first step you need to take care of when building your retirement plan is to identify your own retirement goals. Ask yourself: How much will everything cost? What are you willing to compromise on? Where are you going to live? What healthcare plan will you follow? Do you intend to have medical assistance at home? These questions help you build an image of what retirement will look like, which will ultimately provide a better insight into which plan you need. Keep in mind that proper planning is essential so that you won’t have to rely on Social Security benefits post-retirement and you will also have access to a tax-deferred retirement account.

4. Long-Term Care Insurance

You may not think you need long-term care insurance now, but actually, statistics show that approximately 70% of adults aged 65 and above will need it in the future. You’ll need long-term care services if you can no longer care for yourself for an extended period of time. Some requirements need to be hit for you to be covered. These include walking, eating, dressing, bathing and grooming, continence, and toileting. If you are unable to do at least two of the activities mentioned, you will be eligible for long-term care. Because long-term care directly affects your living situation and environment, it is important to explore all your options now while you are able to do so. Look into the different long-term care services available for home health care, nursing home, and assisted living facilities. One critical fact to note is that long-term care is not covered by Medicare and can cost a great deal, especially if not anticipated.

5. Disability Insurance

Most employers provide group disability insurance as a way to replace your income in the event that you are unable to work due to injury or illness. However, the disability insurance provided by your employer may only cover 60-80% of your income. It won’t cover all your expenses. That’s why it is important to always take a good look at your policies at work. If you think you may need more coverage, make sure to set up an individual plan for yourself to protect yourself from potential uncertainties. Remember, the coverage of disability insurance plans can vary greatly depending on the type of plan you want, which company you are looking at, and how much you are willing to pay for it. To ensure you are getting the right plan for yourself, be sure to ask specific questions when shopping around and compare different alternatives before deciding on one.

Key Takeaways

Currently, we are living in unprecedented times and life can throw us a lot of curveballs. However, we can still have control over our future by planning for the unexpected now via detailed insurance, policies, and action plans. Back Office Advisory Desk works with its clients to tailor solutions that align with your life and financial goals. Contact our team today to learn more about our services.