Family financial protection

Training 905 minutesfamily financial protection

You are 34, an electrician with a partner and two kids aged 3 and 7. Your pay covers 70% of the family budget. Protecting your family means a plan for illness, injury or the worst.

Training goal: Give your family a safety net for anything

▶ Play this training

Situation

1. A coworker falls off a ladder and goes six months without income. You wonder: what if that were me?

Get disability income insurance
Count on relatives
Take more jobs while you can

2. Your partner has no idea about passwords, account numbers or where the documents are.

Keep it all in your head
Build a family folder: accounts, policies, contacts
Send your partner all passwords by chat

3. Term life cover for $350,000 costs $28 a month. You have $2,000 saved and $3,000 on a card at 24%.

Take life cover worth 10 years of income
Skip it and just save
Insure only the kids

4. The beneficiary field on your bank account and policy is blank. There is no will.

Leave it, the law will sort it out
Name the older child for everything
Name beneficiaries and write a will

What you will learn

Protect your income with disability and life cover while others depend on you.
A family folder of accounts and policies saves your loved ones months.
Named beneficiaries and a will speed up every payout.

Your real-life step

Start a family folder: a list of accounts, policies, loans and contacts. Show your partner where it is.

Questions and answers

How do I protect my family financially?

A 3 to 6 month cushion, life and disability cover, a will, named beneficiaries, and your partner's access to key documents.

How much life insurance do I need?

A common guide is about 10 years of income plus debts and goals like the kids' education. Fine-tune it to your family's costs.

What is a beneficiary?

The person who receives the money from a policy or account when the owner dies. Named in advance, they are usually paid faster than through an estate.

▶ Play this training Track your budget in Hanimani

More trainings in this module

Numbers are illustrative. A game, not financial advice.