Family tragedy — Are you prepared? (Poll)

The news of James Kim's tragic death has started a long discussion in my family. We went through the recent news reports and slowly the conversation shifted to the subject -- are we prepared financially should a family tragedy strike?

A death of a loved one is a devastating event by itself. Finances is the last thing you want to worry about should it happen. What can you do to prepare yourself? Here are a few basic things that you absolutely must do:

  • Calculate and know your net worth
    Knowing what you own and what you owe will help you better understand where you stand financially
  • Build an emergency fund
    If you don't already have it, start putting aside a small amount each month to a savings account to cover at least 3 month of your living expenses
  • Buy adequate insurance
    15 year term life insurance contract with $300K coverage can be as cheap as $10/mo for a 30 year old non-smoker.
  • Arrange for a potential loan source
    Consider applying for a home equity line of credit. You don't have to use it now but having it handy when needed is very useful
  • Record a living will
    The service doesn't have to cost a fortune. If you are willing to spend a little more time you can do one online for as little as $20
  • Keep accurate financial records
    And that includes your spouse knowing where the records are

Should the tragedy happen here are a few resources that will help you coup with the situation:

I am probably half the way through that list above. What about you?

See also:

1 Response to “Family tragedy — Are you prepared? (Poll)”

  1. 1 InsureBlog Trackback on Dec 20th, 2006 at 7:32 am

Leave a Reply