To avoid being blindsided in your pursuit of a life that entails complete financial freedom; where the mortgage is paid off and you can choose to hand your resignation in at work if you wish and the constant daily burden of money weighing your head down is eradicated, there are other factors you should plan for aside from the main financial goal. It’s the events that could throw your hard work and effort to the winds if they’re not considered and accounted for in advance. Take a look to see if you’re covered for the below.
It’s the unexpected that’s frightening of all when you’re living your daily life, working hard to reach your goals and then something happens. A car accident, a fall at work, slipping down the steps to the subway station, your life has taken a sudden turn for the short or long-term future. You’re disabled and wish you’d taken steps to take out insurance to cover you in invents such as this. The matter of the fact is unless you have enough savings stashed away to take care of you for 6 months, or in some cases, for the rest of your life, hedging your bets with a disability insurance company is a small price to pay.
However, don’t be entirely fooled by the notion of insurance meaning you’re 100% likely to receive a payout in a catastrophic event rendering you disabled or injured. As it’s been proven through various legal cases, you could struggle to receive such a payout when you try opening a claim especially with disability insurance, So prepare to further back yourself up in this situation too with a lawyer who knows the ins and outs of the small print concerning insurance policies. This reassurance will warrant you signing a plan that’s more likely than not to support you in a ‘what if’ scenario.
If you consider the cost you would incur if you were to become disabled next year and had to support yourself for the entirety of your life but were no longer capable of working, taking out an insurance policy is wise. But don’t solely put your eggs in one basket, squirrel away an emergency fund for the potential rainy days, weeks and months to put you ahead of any issues that may occur and protect your goal for financial freedom. From smaller issues such as a broken dishwasher to more significant issues, such as losing your job, to tragic problems such as becoming ill from cancer. Your emergency fund will tide you over during your aspiration to reach financial freedom, patching the gap and relieving you of economic concerns until you hopefully receive your claim through from your insurance company.
Cancer.Gov reported 1,735,350 new cancer cases will be diagnosed in the US in 2018. Census Bureau says that 1 in 5 people in America has a disability. The financial burden of which can tear away your wishes and aspirations for economic freedom, unless as advised above, you’re prepared and accounted for with insurance and an emergency fund as a safety net.