When you are the breadwinner in your family, you have a responsibility to take all of the necessary steps to prevent them from facing financial ruin. There are numerous pitfalls that occur during your life. It is how you choose to navigate these pitfalls which will ultimately decide your financial future. Many people could have avoided bankruptcy or being evicted from their home if they had simply planned ahead. Here is how to protect your family from financial ruin.
1. Buy health insurance
Despite the new Obamacare legislation, a large amount of Americans are either covered by a very poor health insurance policy, or no health insurance at all. This is because many people, especially young people, view health insurance as a waste of money. They believe that since they are young and healthy, there is no need to pay a large amount of money each month on health insurance that they will presumably never need. However, these people are taking an enormous risk. They can't predict the future. They have no idea when a serious injury or illness will befall them or a member of their family. If they require a major operation and they are not covered by insurance, the results on the family's finances could be devastating. Health insurance is something no person should be without. The same can be said for dental insurance.
2. Buy mortgage protection insurance
This is another vital type of insurance that many people are not aware of, but they should be. This is because having it could literally be the difference between saving and losing your house. Also, the cost of mortgage protection insurance is not that great, especially when you consider the potential financial devastation it can protect you from. How it works is very simple. The person who is the main provider will be covered by the policy. If he or she dies, the amount of money that has yet to be paid on the policy holder's mortgage will be paid by the insurance provider. This will prevent the family from facing a potential eviction proceeding.
3. Save money before having a baby
This idea seems very logical, but millions of people still refuse to do it. Raising a child is a tremendous expense. This is why every couple should put money away before having a child. Once the baby arrives, the price of formula, food and diapers can often be overwhelming.