Emergency Funds +

Emergency funds used to cover 6 months of living expenses, but now 12 months is more realistic.

Are You Prepared for the Unexpected?

Let's talk about something even more crucial: Life Insurance.

To protect your family, it's recommended that you have enough life insurance coverage your debts, plus 10 times your annual income, plus the amount of your current mortgage(s), and an additional $100k for each child's education.

Consider the D.I.M.E. approach when calculating your unique needs:

D - Debt Include car loans, credit cards, and student loans. Remember, if someone co-signed your loans, they will be responsible for them if you pass away prematurely. Everything seems manageable while you're around, but what happens when you're not? These debts can quickly accumulate and overwhelm those left behind. Even with friends from church bringing meals over daily, the stress can escalate.

I - Income Multiply your annual income by 10. With young children or grandchildren at home, they will need time to reorganize if you're no longer there. They might not need the full 10 years, but the first year or two will be the toughest, and they may burn through more resources during that time until they find their rhythm.

M - Mortgage(s) How will the mortgage get paid if you're no longer here? Will your spouse and children be able to stay in the home you made for them? Will your spouse need to go back to work? Can they keep up with the family's accustomed income? In today's world, your partner may be able to outpace your income, but how will they make up for lost time with family, especially during grieving times?

E - Education College costs are always on the rise. $100k for each child may not cover the entire bill, but it will be a great start. Setting your family up for success should be the goal. Showing that you cared enough to plan for the inevitable will mean a lot.

I hope this helps. I know it can sting a little, or a lot—it did for me—but the best approach is to meet the challenge head-on. Even if it’s just a conversation, take that first step sooner rather than later. There is power in timing.

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