Use This Checklist to See if Your Family is Financially Secure
Use This Checklist to See if Your Family is Financially Secure
By Laura Bogart April 30, 2025 GoBankingRates
You work hard to take care of your family, and you’re proud to do it. And one of the most important things is making sure your family is financially secure.
But financial security can be tough to define — how do you know when you’ve achieved it? Fortunately, there are some tangible things you can do that will financially benefit you and your family in the long term. Some of them are small, like starting that emergency fund, and others are bigger picture, like sitting down with a professional to look into investment strategies or life insurance packages.
When in doubt, take a deep breath and sit down with this checklist.
1. Build An Emergency Fund
If there’s one thing you know by now, it’s that life happens — and it’s often pricey. Whether you’re hit with a sudden accident, job loss or other blow to your income, you want to know that you’re able to protect your family’s finances when it does. Having an emergency fund is one of the biggest safeguards you can build around your family’s future.
Every month you should be allocating some of your income, as well as any extra funds you get, to a high-yield savings account, with the ultimate goal of putting away at least three months’ worth of expenses — and ideally six months’ worth. But start small and build momentum as you save.
2. Secure the Right Life-Insurance Package
Having the right life-insurance policies insulates your loved ones from financial hardship while presenting you with a unique opportunity to actually grow your wealth. Sitting down with an expert advisor from New York Life can give you personalized guidance about the best policies to keep your family secure.
There are a few main options to consider: Permanent life insurance policies (such as whole life) are designed to provide long-term — often lifelong — coverage. As long as you continue to pay your premiums, your coverage will be there for you whenever you need it.
Term life insurance policies provide temporary protection that lasts for a set period of time. In many cases, the coverage can be renewed, but only up to a specific age, and your premiums will generally go up with each renewal.
The sooner you start the process, the lower your premiums can potentially be, and you have the option to keep them level for five, 10 or even 20 years.
You can also explore a universal or variable universal life insurance policy. Variable universal life¹ gives you the option to invest your funds in the market, giving you an opportunity to grow the cash value of your policy — and the amount you’d be able to leave your loved ones. With the growth potential, of course, there is a market risk. The best thing to do is talk with an agent to see what makes the most sense for you and your family.
3. Make Sure You’re Insured Against Income Loss
It’s important to plan for the unexpected. If you were suddenly unable to work due to a sickness or injury, you’d want to be sure you could still provide for your family. That’s why it’s important to protect your income with individual disability insurance.