Suze Orman TwitterSuze Orman FacebookSuze Orman YouTubeSuze Orman LinkedIn
View Blog & News List

Take Care of Your Family’s Financial Fears

January 07, 2016 at 12:00 AM

When it comes to ranking financial fears, worrying about how your family will fare if calamity strikes is probably at the top of your list. Yet for some reason, no amount of fear has pushed you to the point of (finally!) taking the steps to protect yourself and your family from the “what ifs” that can strike at any time.

I am not here to scold. Or guilt you. I just want you to get past this excruciating fear once and for all.  Here’s how:

  1. Create your 4 essential documents. A will is a good start, but a will only spells out your wishes once you die. A revocable living trust is a powerful document that can help your family carry out your wishes if you become unable to manage your affairs, and also streamlines how your money will be disbursed and inherited once you pass. You also should have a financial power of attorney, so someone can step in and handle your affairs if you are unable. (Every trust should include an incapacity clause.) A durable power of attorney for health care appoints someone to be your “advocate” if you become unable to express your medical care wishes.

  2. Buy Term Life Insurance for your dependents. If anyone is dependent on your income, you want to make sure that if you were to die prematurely, there would be enough money to continue to support your loved ones. That may be young children, or older parents, or a spouse.

    In most instances you really only need life insurance for a finite period of time. Maybe until the kids are adults, or until you’ve been able to save up enough assets that your spouse or other dependents would be able to live off the income from those assets.

    That’s why I highly recommend most families only need term life insurance. As its name suggests, it lasts for just a set term. That can be five years, 10 years, or 20 years or more. If you die during the term, the policy pays out a death benefit. Because of the finite length of the policy, term life insurance is incredibly affordable. I guarantee you will be amazed at how much protection you can buy for a very small sum.

    3. Don't scrimp on basic home and auto insurance. Buying “just enough” home (or renters) insurance and auto insurance is one of the costliest mistakes you could ever make. You don’t really think going cheap is smart, do you? Just think how exposed that would leave you financially if you were in a serious accident or your home was severely damaged in a fire or other covered accident.

Tag Cloud

adjust allocations protect and provide for minor child learn good financial choicesGraceget credit cardtaxesretirement accountsLong Term Care premiumsclosing disclosurecontribution social security not going brokecompare provider pricing20 year level term HDHP's50 over 50Communication Skills borrowing plan public service career student loan repayment strained relationshipmobile appoverspend on giftsDeath Benefitraising interest rateskid borrow firstnon conventional routeNew York Lifehigher monthly paymenthigh deductible health care planno private loanUrbana-Champaigncar buying mistakespay down student loan debt8 Rulesmax employee matchlow-cost index mutual fundLong Term Care Insurance yours, mine & oursLTC shoppingheartacheface your financial fearrent vs buyEric Dodge dangerous retirement planprescription tierfocus on needsreduce interest rateConventional loan PMIlong term goal4 Must Have Documents budgetPhyllis Shelton expert long-term careCredit scoreno late fee cnbc alarm clockcharges on credit cardraise your deductibleautomatic withdraw to savings retirement planwomen outlive menbe kind to yourselfeight month living expense ritual scheduleStock Investmentsfull retirement ageage appropriate choreHow To Build Creditsocial securitySave Us MoneyTeachloved ones dependent on incomeaffordable premiumearn more on savingsLifestylecostly legal 20% down paymentemergency fund savingspay high rate off firstgrandchild summer job IRA contributiontraditional vs roth 401(k)value moneyhigh down paymentJose RodriguezLong Term Care shoppingFICO at least 720secured carddon't derail retirement savingsreduce withholdingtelevision hostDurable Power of Attorney for Health CareStudent Debt CrisisCommencementraising mortgage rates purely financial standpointconfidentno tax on withdrawlssmall changes raise deductibleslive below your meansinterest on student loansCOLAbreakdown projected monthly housing costconsider roth 401(k)leave a legacymultiple lenderscar loanadvice for college graduatesget health insuranceno retirement funds for down paymentpush yourself to save more for retirementexercise reguarlygay marriage ban end Florida college studentGay CouplesAlarm Clockpay off debtdebit cardMotherARMthree year car loanMortgage Credit Availability Indexspring summer bill paying prioritieslong-term care don't blow tax refundwrite new goalEasy Life Insurance financing car community bankplanlife insurance name trust as beneficiarycan you afford itCivil RightsCombo Insurance Productsprotect your familyworkaholic8 month emergency fundstudent loan debtmonthly benefit credit utilization ratedon't charge a pennyoverspend on dining outrefinanceallowance taskdebtsame sex marriage band end Floridahighest possible benefitsave Post-Divorcegrandparent IRA contribution Pay Off Debt Before Retirementshort term goal near historic lowsautomate student loan paymentsSuze Orman ScholarshipLove20% equityrefundFinancial Advicebest interest of investorNewtownTelepicturesFHA loan feesrepay student loansone annual feeSuze approvedcreate new truthunsubsidized Stafford loanlower mortgage interestAdequate Auto and Home Insuranceresponsible with moneylower premiumdental discount planfinancial aidstretch out haircut appointmentshome budget after tax costFinancial AwarenessFundstake actionInvest for savings growthInflation Benefitteach importance of helping othersdon't ignore open enrollmentAccuQuote.combuy down 2015 record year car salesCiti Simplicity Card Marlo ThomasSchool of Social Workdon't defer interest paymentsinsurance mistakeschedule vacationfederal student loan deferment buying car 2016Young Adult Mass Mutualmoney vowsFRAMust Have DocumentsGiftshealthy retirement blood pressureETF'signore 6 month grace period long term carecomparison shoppingChanging LivesUS Tax Codeconfident of solutiongraduationcompare monthly expensesaffordabilityfamily save at least $100 monthlyCPI-Wcost of capitalization calculatorholiday spendingadult childrendon't do five year car loandear suzebetter loan dealsmortgageSwap Older Annuities or Life Insurance percentage men widowed 75-84buy homehigh credit score discounteliminate credit card debtbest loan deal pay more than minimummarriage financial responsibilitypreexisting condition not covereddeath benefit needs for familyretirment savingsEmergency Savingsbecome member required disclosurestandard deduction Revocable TrustFinancialinsurance yearly reviewalways use all paid time offchildren's bookNew american Dream pay credit debt ASAPStudent DebtFixed Rate MortgageGoodbyeverify wellness screening and programsdoctors in networkLegal Guardianfile asapFinancial Power of Attorneylow credit scorerising home priceslife insurancesave moneyBeautywomen longer life spanincentives for health care wellness screeningFinancial Gift Cliffinterest capitalizationMinor Children unexpected expenseincrease retirement contribution ratespecial saving accountderailed planpaying for collegeFICO ScoreFiscal Responsibilitylowest cost fund optionnew carphysical healthlet them have 50% controldental savings plan!00% tuition paidForbesHDHP's are not badis it necessaryCollege of Veterinary Medicinestandard ratevalentines dayitemized deductionfinancial independenceForbes Top 10one credit cardfocus on new truth president Obamazero rate transfer dealsbad retirement planningannual cost of living adjustmentat worst still pay 75% benefitdangerous money seasondon't spend provider of financial supportUniversity of Illinoisfinancial fearsgift not loanis it true? wives should be involved in retirement3% debt transferred fraudulent returnfinancial goal phrasealternative FICO scoresocial workFinancial SystemHDHP's are good for youCory Bookershorter payback periodpremiumStudent LoanLTCi ASAPInterestcut monthly cable billsecure creditearn allowance15 year mortgagetoo expensive schoolForeclosureovercome financial fearsSuze Orman's Money Warsincrease emergency savingsHoliday ShoppingOverspendingAmy Lacyetdoctor no longer in networkmortgage brokerMoney-Savinggift grandchild IRA contributionpublic service loan forgiveness programlousy investmentSatisfyingAARPwomen live longerschool paid vacationhome loan credit score below 740 healthy aging retain separate credit cardsdon't extend mortgage Financial EducatorRetirement SavingsCD'speace of mindborrow each year, capitalization is going to pile up overspend on nights outroth iraclosing feesback door Roth IRASuze Orman spouse Kathy Travis20% down payment avoid feescouple financespercentage of women widowed 75-84Vital Documentshealthy teethSuze changed my lifeuniversal college accessFederal PLUS loanThe Suze Orman Showloan no longer than 36monthsCredit Card Rate Increasepositiveraise insurance deductibleletter to suzebest interest ratesSelectQuote.comHoliday Seasoncommitworst financial mistakeget over life insurance phobiashop online guaranteed level term policySpendinghealthy youbalance transfer don't use allowance as bribequick closingMoney Marketidentity theftpay 100% cashbig results not enough life insurancechildren under 18community collegemaintain standard of livingteens and moneyhome related tax break bonus Federal Reserve401(k) Contributionsstudentavoid burn outmanage student loansrolloverdeath benefit 20 to 25 times annual incomeFinancial Solutions For You2016 adjust withholdingWarner Bros Television Groupterm insurance3 step financial road mapcut monthly cellular billmoney-aware childopen enrollment review credit managementloan necessitytax ID theftCredit Card Interest Ratedo you need life insurancehome buying seasonapproved medical 100% tax-freeFICO credit score credit card mortgagelow mileage discountGay RightsPBS Special2016 adjust estimated taxstay positiveadd teenhousing marketIRA contribution gifted moneyEmployer Matched Contributionlow down paymentdebt freeinsurancesocial security never insolventlong-term care premiums2017 Taxesincreased auto insurance premiummeet monthly car leasingRichdon't buy wantsclosing costs 2% of loanbad decisionsrequire chore in exchange for allowancereplace permanent life insurance with termstaycationprofessional advisormake saving a pleasureis it necessary?Exhibitiondon't cover cosmetic dentistrylower interest rate19 years cash flow problemsuccessAuto Savings summer job match income 20 to 25 times annual incomeescrowno life insurance financially irresponsibleemployer funding HSAteensreal estate mistakes30 year mortgage point cost offset by savingspermanent life insuranceprotect loved ones Suze is my biggest mentorno private loanscredit cardno fee transferreduce monthly paymenthigh premiumsswitch to spouse coveragedream schoolPrime Rate Rise 2015store credit cardsback-to-school budgetfour steps to retirement savings Wall Streetloan big picture BankruptcyOne Wallet At A TimeHolidayUniversity of Floridaburn outemergency fund same-sex marriagePrime Rate IncreaseHigh Credit Scoretax refund fraudsetup automatic savings withdrawkeep a scheduleco-sign mortgage disclosurestudent loan repayment planno apologyLTCage appropriate goalsiffy incomeallowanceSelfishfinancial argumentsnot gender specific Suze OrmanHeartno negativityno sneaking in feesaccelerate dental workmental healthhome buying budgethigher insurance deductiblehealthy gumsMost Influential Celebrities Listmax benefit coveredknow before you owewaive home inspection bidbuying a carcostly insurance mistakeidentity fraudgift up to 14,000commissionsonly refinance if it paysonly offered while employed CNBCemployer offered life insuranceHSA tax savingsPersonal Financesavings pleasurecredit unionMoneyFree Debt Eliminatorteach your child good money habitsFederal Stafford loan3 savings buckets buy home you can affordinitial tax break engaged in financesultimate compounding giftno interestWashingtonswitch to roth 401(k)powerfulInfluential Celebrity40% toward financial goaljuggle multiple financial goalsHDHP/HSA10 year repayment plan lower ratepaid in fullWill10% donate to charityAshley Springerdental insurance under 18 financial giftincrease retirement savingskids schedule paymentsis it kind?no splurge retirementhigh FICO scoremortgage interest tax deductioncollege graduateHDHP High FICO Score = Better Rateresponsible8 month safety netlower overall drug costBill and PennySandy Hook Promisereal estate marketemotional stakescontribute household expenses Staffords this year have a fixed 6.8% interest ratejanuary billsGiftstudent loan repaymentanticipated salaryautomatic paymentbe good examplemax employer matched 401(k) contributionInfluentialsFinancial Clifffinancial concernsuitablemarriage inequalityAmericans don't use all paid vacation timepay interest while in schoolbetter loan rateshealthy retirement weightget the most out of social security would you decline a bonusspeak new goalSandy Hook Elementary School15-year refinance dealRoth 401(k)Retirement Incomeorigination feesfiduciary6 month waiting periodloan is giftsavingspay down car loancredit reportbe true to yourselfFinal Goodbyefile taxes quicklysidelinedhome buying mistakesstudent loan repayment estimatorRevocable Living Trustmonthly dental insurance premiumreferrals 2015 financial roadmapFinancial Awareness Video Festivalcalculate dependents annual income needs740 credit scoredo not pay allowance for good behaviorBaby Boomersverify retirement plan with HR or plan sponsordepreciating asset title insuranceFederal Funds Rateterm life insuranceAARP Social security calculatorVeterinary Schoolnegotiate points with bank or sellerhome insuranceBankproperty taxprotect dependent ARM Cautionwomen long term care401Kno waiting periodenjoy saving better terms3 bucket approachhome ownership

View Blog & News List
People First. Then Money. Then Things.
Connect with me on Facebook Connect with me on YouTube Connect with me on Twitter
© 2017 Suze Orman Media Inc. All rights reserved.
 |  Search  |  Sitemap  |  Privacy  |  Terms
Sign Up For E-mail Offers
Open Panel
Close Panel