One of the utmost priorities of almost every human being is protecting their loved ones and family members financially. We all work hard to make sure that our family and children get everything they need right on time. However, very often some of us fail to do so due to a plethora of reasons that you might have ignored.
In order to understand where things might go wrong and the correct ways to fix them is what you'll come across in this blog. When we try to safeguard our loved ones against the strokes of uncertainties on the trail of life, we unwillingly might get slightly late. We tend to focus all of our efforts on accruing wealth so that our loved ones do not struggle for anything in life. But, in this rat race of accumulating more and more money, we forget that our ultimate fate is just the same.
Accounting death and uncertainties in life are inevitable but it is possible to be well prepared for the future. Now, the question arises how can we do this? Do we need a lot of money to protect our loved ones? Where do we seek advice from? How do we ensure financial security for my children and spouse?
To answer all your queries and conceptualizing the basics of protecting your family, we've come up with this blog where we will share the most recommended tips and tricks coming right from experts on how can you protect your family financially.
The first pillar in protecting your family and loved ones is savings. We all know that a significant portion of the Emirati population is composed of expatriates who have migrated from their native country to the UAE in search of better job and remuneration opportunities. If you are an expat residing and working in the UAE, try and maximize your savings by following a simple lifestyle.
A lot of expats who move to the UAE get tempted by the flashy lifestyle of the country which creates a state of mind for them pushing them to overspend. This creates a financial crisis leading to debt accumulation. Therefore, you should try to save as much as you can which will help you to strategically allocate the savings into investment vehicles which will yield returns.
Once you have begun saving and accumulated a considerable amount of capital it is now time to make use of it. A small portion of your savings should be allocated in purchasing best term insurance which will act as a protective shield in safeguarding your loved ones against any unforeseen event. With the best term insurance one can ensure that in case of any unfortunate event that leads to the disability or demise of the sole breadwinner of the family the nominees get a death benefit that will help them to make ends meet.
Albert Einstein said, "everything is decided the beginning as well as the end yet we all dance to a mysterious tune intoned in distance by an invisible piper". None of us are aware of what the future holds for us and hence it becomes extremely vital to be well prepared for countering any obstacle. In order to counter obstacles on the trail of life, one needs financial assistance, and this is why emergency fund becomes an absolute must. According to the thumb rule, you should at least have six to eight-month worth of earning as an emergency fund. In case you are the sole breadwinner, it becomes even more important to build an emergency fund.
Outstanding Financial Obligations
Having outstanding financial obligations in the form of mortgage/student loan/car loan is one of the onerous mental burdens. If you're paying mortgage and something unfortunate happens the debt is now payable by your family members which are a horrifying thought. In order to make sure that your family members are safe against any debt, it is vital to get the best term insurance that will cover the outstanding financial obligation so that you can live your life to the fullest without worrying about the future.
The second component after purchasing the best term insurance is investing. Out of your total savings, a small portion is used as insurance premiums, and remaining should be invested in suitable investment plans. In case you are looking for moderate returns with the low risk you can opt for investment options like provident funds, mutual funds, savings bank account, and post office schemes. Contrary to this, if you are looking for lucrative returns with a degree of risk you can go for stocks, capital assets, etc.
Before you go ahead and make any decision it is crucial to assess your appetite for handling risks and returns associated with investment vehicles. You can compare different investment vehicles on the basis of numerous parameters via online web aggregators.
In a Nutshell
In today's world where we almost every day listen to stories of unfortunate events such as loss of a job, accidents, financial losses it becomes inevitable to get the best term insurance that will safeguard your family members and loved ones against a plethora of unforeseen events. Furthermore, with these tips, you can make sure that the future of your family and loved ones are safe.