5 ways to strengthen your financial protection plan

Due to the current economic climate and the uncertainty surrounding it, many people are feeling like their health, job and retirement savings are at risk.

As a result of the ongoing pandemic, people are particularly concerned about having enough funds saved for emergencies, the effect of market volatility on their investments and having enough money saved up for a comfortable retirement.

This year’s volatile market has reinforced the belief in many consumers just how important it is to have a well thought out financial plan. One that is capable of supporting them through these challenging times and have them prepared for success in the long term. A good way to begin the process is to have an open dialogue about your finances and retirement goals with your loved ones. This will allow you to create a strategy to better manage your finances and protect your financial future.

Let’s explore how you can best protect yourself against risk. Here are five suggestions on how consumers can create a more robust financial protection plan:

Fund the Future.
Life insurance can be a means for more than just death benefit, some types of policies also offer income replacement for unforeseen events. Such policies can protect your financial security from the impact of taxes, market volatility and longevity. More importantly, these policies are not just available for individuals and families, it is available for businesses as well.

Protect Your Paycheck.
Consider the factors that might affect those offered by health insurance. Factors like disability, accident and critical illness coverages, and especially the cases and events covered under employer insurance should be considered to protect yourself from income gaps and stop you from paying out of pocket for covered expenses.

Add Protection to Your Portfolio.
You should also think about diversifying your portfolio with an annuity. This will provide protected growth and monthly lifetime income for a portion of your portfolio which will help cover expenses during retirement as well as making sure that you have a steady stream of income throughout your retirement.

Reimagine Your Retirement Plan.
The in-plan guaranteed income options provided by many policies can be a powerful tool to protect your savings especially when the market is volatile, while still benefiting savers when the market goes up. Also, savers should keep their focus on the long term and bear in mind that saving for retirement is all about the long run and not a sprint.

Create a Cushion.
The cost of an unexpected long term health-related condition may not be something that you have included in your insurance plan. Unfortunately, such events can occur suddenly and without warning and lead to a lot of expenses. One way to protect yourself against such a situation is to have a strategy in place that factors in the cost of care if for if/when you or your loved ones need it the most.

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