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Two Things to Help with Life’s Surprises

Photo of author, Drew Tardy, CLU®, ChFC®.
Drew Tardy, CLU®, ChFC®
Regional Manager and Financial Strategist

Life can be exciting. One of the things that can make life so exciting is the unexpected surprise that comes from a random phone call on a Wednesday afternoon. Hopefully, more often than not, that phone call is one of good news or promising developments, or even hope. Your spouse or child got a promotion at work, your sister just got engaged, or your parents have finally decided to take that all-expense-paid cruise.

Occasionally, though, we are met with an unwelcome surprise, such as a family member has been in a car accident, a tree has fallen on your home, or you have been named in a lawsuit from an accident that occurred on your property. These are the situations that can catapult us onto an emotional rollercoaster of anxiety, fear, or heartache.

A well-thought-out financial plan is one that can help with both the positive AND the negative surprises that we encounter from time to time. To help mitigate risk associated with those unexpected life events, it is important to have a solid foundation in place to cover you and your loved ones.

That foundation is built on two things you must have to face those unexpected surprises: Cash and Insurance

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Cash

  • Have $1,000 emergency expense fund in place. This can help with meeting insurance deductibles or covering costs that are not covered by insurance, such as needed new tires or unexpected household repairs.
  • 3 to 6 months’ worth of living expenses saved. 3 months if two incomes, 6 months if only one household income. This will be of utmost importance to cover a job loss, or the elimination period of a disability policy, or any of life’s biggest surprises.

Insurance
Having the appropriate insurance coverages in place can help you transfer the risk or financial burden of an unexpected financial expense. Sit down with a trusted insurance professional or financial advisor to make sure that you are adequately covered. Take the time to learn and understand each of the following insurances and how they might apply to you today, and tomorrow:

  • Home
  • Auto
  • Umbrella
  • Disability
  • Life
  • Long Term Care

Emergency cash and the appropriate insurance coverages are the critical building blocks to a successful financial plan. But, remember, they aren't the only ones.

As you move through any of life's milestones (e.g. first job, marriage, home-buying, children and college planning, career advancement or business start-up, business succession planning, retirement, or legacy planning), it's important to use that foundation as a springboard for establishing new goals and strategies that get you where you want to go...to your financial "good life." With a solid financial foundation, professional guidance, and a true plan, you will be well-equipped to take on any of those Wednesday afternoon phone calls.

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