How financially secure are you when tragedy strikes? It can be tough to get out of a tight spot if you don't start planning now.
No one likes to think about tragedy or disaster striking their family, but if you don't have a safety net in place, your finances can quickly get out of control. The cost of health care, medical expenses, insurance payments and long-term care can make it almost impossible to recover from, financially.
Caring for a loved one after an accident can cost upwards of $100,000, more if they need long-term care (more than six months). If your loved one is the major breadwinner, this can put a major dent in your investments and savings. Unfortunately, many people find that they have to sell everything they own in order to pay for health care costs, and this includes their home. Imagine having to sell your biggest asset just to cover medical bills. Don't think this can?t happen to you – because it can. In fact, it happens to hundreds of thousands of people each year in the U.S.
Statistics show that on average, there are about 6 million car crashes each year in the U.S. and 10 percent of those cause permanent disabilities among victims.
Luckily, there are safeguards you can take so you don't become financially destroyed should tragedy strike. It may be extremely difficult, but it?s crucial to soldier on after a serious accident and stay on top of your money management efforts. Here are a few ways to make sure you and your family are protected:
Hire a lawyer after an accident
If you get into an accident, talk to a lawyer as soon as possible, even if you feel the accident was your fault. A personal injury lawyer and/or a wrongful death attorney may be needed in order to avoid bankruptcy. Firms will help ensure that you get fairly compensated, regardless of who was at fault. They will work with your auto insurance company to make sure they pay everything they are required to pay, and will help fill out the endless paperwork and gather the necessary documents.
Buy the right health insurance coverage
There is a lot to consider when buying health insurance, and many people make the mistake of buying the bare minimum because they don't think they'll need more comprehensive coverage. Spend some time investigating your options and purchase the right coverage for you and your family – both for your current needs and future ones. If that means you must pay a higher monthly premium, it may well be worth it. Depending on the company you choose, you could be entitled to home care or other premium services.
Invest and save
When most people thinking of saving and investing, they think of their retirement, buying a vacation home, or traveling the world. While those are all worthwhile goals, there are other things to save for as well. Think long-term health care, retirement homes and in-home care for your golden years. If you or your loved one were to become disabled as the result of a car crash, you need to have savings to live on. It will give you incredible peace of mind knowing you are protected in case the worst happens.
Financial stability is only one small part of dealing with the issues of a car accident, even minor ones. The emotional strain can take its toll on your health, both physically and mentally. Make sure you have a support system to help you through these tough times. Parents, adult children, close friends and other family members can give you emotional support so you can make it through the toughest times in your life, particularly if you've lost a loved one due to unforeseen circumstances.