As much as we try to avoid the absolute truth that we have an expiration date, sooner or later this topic will be unavoidably discussed. So might as well prepare for it.
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| "burial-cemetery-countryside-cross" by Mike is licensed under CC0 |
As we remember our departed loved ones this All Souls' Day (November 2), It is unavoidable to think of our own mortality, and what will happen to those who will be left when it is our time to go. Death is the last event that every sane human being tried to desperately delay. This is why we try our best to live a healthy and stress free life.
But life is full of surprises, we really never know when our deadline is… What we can do is to at least prepare for that event, in order for us not be a burden to our loved ones who will grieve and unfortunately, will shoulder the expenses.
What Will Be the Game Plan?
- Build an Emergency Fund
- Eliminate/Minimize Debt
- Get a Life Insurance
- Have a Memorial Plan
- Ready your Will
- Update the status of your Investments
Emergency Fund
The consensus is 6 months worth of Monthly Expenses as the base. If you have the means, then increase the amount as much as you want. The important thing here is you have some resources when an unexpected event happens.
Eliminate Debt
In an ideal scenario, when a person dies, the personal debt also dies with him/her. In other words, the debt will be wiped out. But this is a gray area, there is always that possibility that the debt payment will be shouldered by the remaining family members.
Life Insurance
This is to ensure that your immediate family members will not starve after they've lost you. Especially, if you are the breadwinner of the family.
Depending on the life insurance policy, the beneficiary can receive the amount as a lump sum or by month similar to a pension plan.
Memorial Plan
Life Insurance, takes care of your family. Memorial plans, takes care of you at the event of death. We have to admit that from the funeral services to the burial (and even after burial) will incur costs.
There are some Life Insurance policies that also cover this as part of the package.
Last Will
If you have some assets to be left behind, it is better to have a last will and testament so that the "Free Portion" can be legally divided to the person/persons assigned by you.
If you don't have a will, the mandate is to follow the government guideline of dividing equally the assets to the immediate family, if married. And to the parents, if single.
Investment Status
If you have some investment accounts when you are still single, better have it updated so that your immediate family can claim the funds or have the authority to have the fund released.
Because the worst-case scenario of an unclaimed asset is the government will step in and own it.
As mentioned at the start of this post, life is full of surprises. But it is never wrong to be prepared.
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