financial emergency

A financial emergency can hit anyone at any time; natural disasters, medical bills, car accidents, redundancy, or a loss in the family. If you are prepared now, when the time comes, your wallet will be prepared for any unexpected turns.

Create an emergency fund

A savings account that is used as an emergency fund is one of the most effective ways to protect your family in the event of an unexpected financial emergency. This involves setting up an account with approximately three months of expenses saved, and it should only ever be used in the event of an emergency. It may take a while to build your savings account to the desired amount, however, making contributions slowly over time will make a big difference in the long run. Having these savings aside will give you confidence in the future, no matter what lies ahead.

Income protection

Income protection insurance pays up to 85% of your pre-tax income for a specified time if you’re unable to work due to partial or total disability. Your income is one of your most important assets. Having an income means you can get back on your feet sooner. If the unexpected happens and you’re unable to work, income protection gives you the peace of mind of knowing you still have an income to cover bills and expenses.

Update your will and estate plan

Another way to protect your family’s financial future is to ensure that you have a will and estate plan that is up to date. If anything unexpected ever happens to you, a will means that your family will be taken care of and that everything is in the right place financially. If you don’t have a will in place, your family will experience the added stress of sorting out your finances during an emotional time. 

Sign up for a funeral benefit

Similarly, a funeral benefit means that you have money set aside to help your loved ones when the time comes to organise your funeral. Take the stress away from your loved ones by having the finances ready and waiting for them. Feel confident that this weight will be lifted off their shoulders by setting up a funeral benefit. When you create a funeral benefit, you nominate a beneficiary who will be able to access the funds and make arrangements in the event of your passing. The team at APS make this process easy, quick and hassle-free, to ensure that your loved ones are cared for during this difficult time. 

Life insurance

Life insurance helps to protect your family’s financial future and gives them options if you are no longer around. Often, the best time to think about life insurance is when your life circumstances change, like after getting married or if you’re expecting a baby. If you pass away or become terminally ill, a lump sum payment can be used to give your family options. This includes options related to how they manage future expenses like mortgage repayments and provides for future financial needs such as school fees or living expenses.

Plan ahead

Creating an emergency fund, setting up income protection, updating your will, purchasing a funeral benefit and considering life insurance, are all strategies designed to protect you and your family in the future. We all know that anything can happen at any time. Taking these important steps now will give you the confidence that there’s a plan in place if an unexpected financial emergency arises.