How to Properly Plan for End of Life Expenses
- 16.12.2020 02:04 pm
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Thinking about our own mortality is nobody’s favourite task. However, as we get older, it’s vital to contemplate our end of life wishes and the costs we may incur in the future. In fact, failing to plan your end of life expenses is one of the most financially irresponsible things you can do; it prevents you from seeing the bigger picture and avoiding undesirable costs for your loved ones after you’re gone.
If you’re wondering how to properly plan for your end of life expenses, here are a few ways you can ensure you and your loved ones have the financial resources you’ll need when it matters most.
Ensure You Have a Good Life Insurance Policy
A good life insurance policy is essential to ensuring your loved ones’ financial security after your passing. There are several ways having life insurance benefits you and aids in your end of life planning: it helps you leave an inheritance, it can help your family members pay off debts and other expenses (such as funeral costs), and above all else, it provides peace of mind. There is no way of knowing when you will die; it’s one of life’s greatest uncertainties. However, in having a good life insurance policy, you can feel certain that your loved ones will be covered when you’re gone.
Grow Your Savings
Saving money is always a good idea, but it’s especially important to put money aside when planning for the end of your life. In saving money throughout your lifetime, you’re creating a nest egg that your loved ones can use to cover both expected and unexpected costs when you’ve passed away. Try keeping as much money as possible in a high-yield savings account to accrue interest on your funds and grow your savings even more.
Consider a Viatical Settlement
When people think of terminal illnesses, they often have the tendency to assume the “It’ll never happen to me” mentality. However, the reality is that it could happen to you, and in the event that it does, it’s better to be prepared.
Viatical settlements are an option for individuals who find themselves in these circumstances. A viatical settlement is an arrangement in which a person who is terminally or chronically ill can sell their life insurance policy to a third party at a discounted rate in exchange for a cash payment. Although you would be selling your life insurance policy at a lower price than its initial value, you can still earn a significant amount of money up front, which you can then use however you’d like. If you’re looking for more information, consult the Windsor Life Settlements 2020 guide to viatical settlements.
When it comes to planning your end of life expenses, it’s natural to want to put it off as long as possible. However, in postponing the process, you could be setting your loved ones up for an incredibly uncertain future. By planning for end of life expenses sooner rather than later, you’ll not only ensure financial security for your family after you’re gone, but you’ll give them the peace of mind they deserve now.