Unexpected events in life can have disastrous financial consequences, and may have a devastating impact on your budget, savings, and credit for years to come. Those who prepare ahead of time can significantly lessen – or completely avoid – these harmful financial consequences.
An unexpected illness can be the worst kind of financial disaster. You may want to set up a trust, or even a living will or living trust, to protect against an event such as terminal illness. At a minimum you should have comprehensive regular health insurance for every member of your family, as well as coverage for catastrophic illness or long-term nursing care. Your policies should be reviewed and revised, as needed, each year. In addition, you should review your Social Security benefits to see what funds are available due to disability, and it is always wise to earmark enough savings for a medical emergency or hospitalization to cover your bills for six months, if you cannot work.