Having a family is a huge responsibility that you need to take seriously since every choice you make affects not only you but your family members as well. However, you don’t have to stay up at night worrying about your family and their wellbeing if you’re making the right decisions for their future. Once you have a plan for any unexpected event that might occur, they will be just fine. Here are some of the essential decisions you should make for your family to give you more peace of mind.
-
Life Insurance
Getting life insurance is one of the most important decisions you should make for your family. While it has no effect on the overall financial situation or daily expenses, it’s something that will secure the future. In fact, it should be one of the top priorities while you’re making financial plans for your family. When an unexpected death occurs, there are many expenses that need to be paid like any financial debts of the deceased or the funeral expenses. To protect your family even after you are gone, life insurance can prevent leaving them in a tight spot financially.
-
College Savings
If you’re about to become a parent or already have kids below the age of 18 years, you need to consider opening a college fund. Some people start one as soon as they are married or when they learn that they’re expecting. This is because college is one of the most expensive things you’ll have to pay for your child. Starting to save early for college ensures your children have many opportunities available to them in the future without having to worry about how to finance their dreams.
-
Retirement Account
Planning long-term wealth is another aspect you and your partner need to make a decision about. Not knowing what lies ahead in the future could be worrisome, but securing yourself financially by having retirement accounts is a step towards some peace of mind. Having money set aside will ensure you don’t become a financial burden to your kids when you are unable to work and you can even consider early retirement at any time. Make sure you get to know all about Registered Retirement Savings Plan (RRSP) in Canada where pre-tax money is put into an RRSP and increases tax-free until removal, at which time it would have been taxed at the marginal rate.
-
Health Insurance
Health is something that is unstable enough that should have you planning for any time it suddenly goes south. Although your family may seem in fine fettle now, becoming aware of your family’s and your partner’s health history can help you prepare for future health concerns, which is why insurers say that deciding to get health insurance in Canada is one of the best decisions you can make for yourself and your family to prevent financial strain in case of any medical emergency. Traditional government plans don’t always cover all that a family may need like dental insurance which won’t be ideal once your kid needs braces. Luckily, there are many health insurance quotes available online with various bundles and affordable rates.
-
An Emergency Fund
Deciding to have an emergency fund is something your family will surely thank you for at some point. Life is too unexpected to leave yourself and your family exposed to it without a financial security net to fall on when needed. An emergency fund can go a long way in making you feel financially safe and reassured. It’s also a great way to avoid falling into any kind of debt, just make sure if you clear it out for any reason, you try to put back the money again.
-
Property Insurance
This should go without saying, but any large purchases you make for your family should be insured. The purchase that should be insured most importantly is your house so that you aren’t in financial trouble if anything happens to it. Home insurance guarantees it’s taken care of in case of a natural disaster or other accidents like a fire that causes physical damage. The same goes for the family car since car accidents can happen at any time. You need to ensure your car is covered to be fixed from any damages out of your control or if you cause an accident and the other party needs compensation.
There you have it, these are the most essential decisions you should discuss with your partner to make as soon as possible. With all of it implemented, you and your family will have peace of mind and can sleep soundly knowing that you are taken care of in case of any emergency. Just make sure you do your fair share of research on the best banks to open your college, retirement, and emergency funds as well as the best places to get health and life insurances.