How to protect my family

[someguy83]

I'm not talking about immediate danger, I'm talking about the things a father should do to protect his family in general. I'm almost looking for a checklist of what should a father do to take care of their partner and kids like life insurance, etc.

 

Thoughts?

[MJJean]

First, marry the partner. You can make wills and choose insurance beneficiaries, but the truth is that there are benefits that only come with marriage. For example, Social Security benefits for widows are only available to the widow of the deceased.

 

Second, get your will made out and make sure you review it and your life insurance policies yearly. Be sure to include who will have custody of the kids and who will be executor of the estate should both of you die at the same time.

 

Have your home(s) and car(s) inspected for safety. Make sure the mechanicals of both are up to date and well maintained.

[central]

Get disability insurance; it's often offered as an employee benefit, but not that expensive privately if you're young. More people are disabled or unable to work at their prior job after an injury - far more than are killed outright.

 

Next, save for an emergency fund - equivalent to 6 months to 12 months of expenses. Then, put money aside in a retirement account (work 401k's are better than IRAs as they often have employer match, and you can also put more aside than in an IRA - Roth 401k's will give you tax free money in retirement, but do not give current tax savings, so you will want to figure out which is best now, and maybe change later). You could consider putting money aside for college savings, but that's not always the best use of savings, IMO.

 

I strongly believe that both spouses should work, and be able to support the family on one income if necessary (and provide benefits such as health insurance, which is always essential to have), in case of layoff or other problem.