It can be difficult to plan for disaster because it doesn’t make for a particularly pleasant topic to talk about or think about. However, if you don’t plan, a personal tragedy can quickly be compounded by financial trouble.
There are several plans you can put in place to help you prepare for a more difficult future, but there are steps you can take in the immediate aftermath of a disaster that can secure your finances as well. If you want to be prepared as best you can for something that disrupts your usual lifestyle, then here are some tips.
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Disability
Disability and personal health issues can greatly impact your ability to work, and your life in general. If you want to protect against the financial damage that this could cause, then investing in health insurance is the first step you should take.
Even if you have insurance, there is still more than you can do if you are struck down by disability. Investigate whether you are entitled to any state benefits as a result of changes to your living circumstances and, if necessary, enlist the help of a social security attorney to help you get the support you deserve.
Redundancy
A change to your employment circumstances can be difficult to take, but planning can help soften the financial blow, if not the emotional one. Take some time to get over a redundancy before you do anything else, but then act quickly to protect your finances. Check to see if you are eligible for any government support as a result of having lost your job and then start creating a financial plan to help you budget until you find new employment.
Take a look at your savings and make the necessary cutbacks. Also, if you’ve been in employment for a long time, you may need some assistance finding a new role. Career advice and CV tips are available for people on all steps of the career ladder, so don’t be afraid to ask for help.
Spousal death
Perhaps one of the most difficult stages of anyone’s life occurs when a partner dies. As well as dealing with your grief, several practical considerations must be taken care of, many of which will relate to your finances.
Firstly, have any household bills that were paid by your partner transferred to your name to prevent late payment charges. After this has been dealt with, you will need to manage the distribution of your spouse’s estate. The mortgage, debts, and other financial concerns will all be affected by this.
Damage to your home
If your home suffers serious damage, the main thing to do is to get in touch with your insurer to notify them and learn what happens next. Make sure you document the damage and are honest with your insurer to avoid issues further down the line.
It’s never easy to keep a calm head when dealing with disaster, but that is exactly what’s needed. If you take a moment to compose yourself and think carefully about your finances, you’ll be able to manage your issues much more effectively.
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