Love & Money

Health insurance.

You’ll need health insurance for you, your spouse and any children you have. Discuss coverage with your spouse and talk about how much you’ll need and whose employer offers the best benefits. Talk to your Human Resources department at work to investigate your options.

Home or renter’s insurance.

Contact an insurance agent today to make sure you have adequate coverage for your personal property. Investigate your policy closely. Sometimes you think you’re covered in a particular area, but you’re not.

Life insurance.

Benjamin Franklin once said, “In this world nothing is certain, but death and taxes.” Consider taking out an insurance policy to ensure your loved ones are taken care of in the event of your death. A good rule of thumb is five times your annual salary. But, life insurance isn’t one-size-fits-all, so do what’s best for you and your family.

Wills.

Many people think, “I really don’t have that many assets. I probably don’t need a will.” Wrong! No matter how many, or how few, assets you have, it’s smart to prepare a will so your assets will be divided according to your wishes. Basically, your will should include:

• Your property and assets.
• Who’ll inherit these assets.
• Who’ll be the executor of your estate.
• Who’ll be named the guardian of your children.
• Who’ll manage your children’s property.

You may want to turn to a lawyer for assistance. Or, if you want to tackle it yourself, there are various resources online and in bookstores to help you protect your family’s future.

Trusts.

Trusts aren’t just for the rich and famous. Trusts allow you more control over how and when your assets are distributed after your death. You can decide when the money is distributed and even how it can be used, (only for education, for example). A trust protects the money from creditors because it can’t be taken to pay outstanding debts. Keep in mind that even if you have a trust, you still need a will. Talk to an attorney or financial planner for more information.

Power of attorney.

Granting someone the power of attorney basically allows them to make your financial decisions if you’re unable to do so. Known as your agent, this person must act in your best financial interest and according to your wishes at all times. It’s up to you who you choose, but typically people select their spouse or a child to serve in this capacity. Make sure your power of attorney is familiar with your financial affairs and knows where you store your important paperwork.