It’s not a subject that we want to think about, but it’s one that does need some consideration. As much as we would all love to have as much time as possible with our loved ones, we aren’t going to be around forever. Sadly, some of us get taken away much sooner than anticipated, such as in accidents.
Because no-one really knows when they won’t be around anymore, it’s important to secure the financial future of your family. Your spouse or partner and any children you have need to be taken care of when you’re not around. As any single parent will tell you, raising a family by yourself is quite stressful, particularly where money is concerned.
So, if you want to spare your family the headache of keeping on top of the bills when you aren’t there to support them anymore, this blog post is for you. Today, you will learn about the best ways to ensure your family can keep their heads above water from a financial perspective. Here is what you need to do:
Take out a funeral plan
When you die, your family will be keen to have your funeral organized as soon as possible. The last thing you want to do is burden them with the costs of either burying your remains or having them cremated. That’s why you should consider taking out a funeral plan.
In a nutshell, it’s a bit like a savings plan. You can pre-pay for your funeral, and the price won’t go up regardless of inflation or other costs. It’s also possible to spread the payments over an extended period if you can’t afford to pay for it all in one go.
Get a life insurance policy
The thing about life insurance is that it can provide some much needed financial support to your loved ones when you’re gone. It’s a way of giving them the support they require so that they don’t have to worry about bills or other household costs for the immediate future.
There are scores of life insurance providers out there that can offer policies to suit your needs. It’s worth doing some research online to find out which one is right for you. For example, you could look at a NatWest life insurance review and decide that it offers what you need. Or you might consider looking for a specialist provider if there are certain conditions that you need to fulfill.
Work at keeping your debt to reasonable levels
Sometimes in life, there will be times where you need to borrow a lot of money to pay for things. For example, your home might need to get rewired. Or you may need to help fund your child’s college education.
If your debt levels become too high, it’s vital that you take actionable steps to bring it down. Otherwise, you could end up with a big financial nightmare on your hands. And if you happened to die before your debts got cleared, your spouse may be liable for some or even all of it.
The good news is that, in most cases, your significant other isn’t responsible for your remaining debts. However, shared ones such as mortgages and loans that were taken out in both your names still need to get paid by your spouse.
There are many ways that you can drive down your debt balance in a shorter timeframe. Examples include:
- Asking your boss for a raise;
- Looking for a better paying job;
- Consolidating your debt (for instance, a low-interest loan to cover your credit card balances).
And, if you have plenty of spare time, you could do some freelance work to supplement your primary income.
Draw up a will
Things can get messy for families when loved ones die without leaving a will. Even if you only have a modest estate, you should still create a will. Doing so will ensure that heirs to your assets and money are specifically identified. You can also use your will to donate some of your estate to charitable causes.
It makes sense to pay a lawyer to draw up a will for you. They can ensure that it is legally-binding, factual, and above all, correct.
Set up a trust fund
Last, but not least, you may wish to consider establishing a trust fund for your children. It’s a bit like a savings fund, but it’s a way of keeping inheritance taxes low for your loved ones. Bear in mind that the costs might be high to set up a trust fund, so only do so if you’ve got a significant amount of money you wish to leave them.