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Survivor & Estate Planning

3 Tips for Overcoming Unexpected Life Events


Everyone faces adverse, sometimes life-altering events at some point. Whether it’s a job loss, medical emergency, home repairs, or unplanned travel expenses, these events can turn your world upside-down when you least expect it. However, there are preemptive steps you can take to help protect yourself against this kind of threat.

For peace of mind and your financial freedom, we’ve compiled a list of tips to help you navigate the more challenging aspects of planning for the unexpected.

1. Establish an Emergency Fund

You may not be able to pay for unexpected life events if you don’t have an emergency fund. It’s recommended to have enough to cover at least six months of expenses.  Your emergency fund is important; it keeps you from taking out high-interest loans to pay for an emergency instead.

A sufficient emergency fund can give you comfort knowing your expenses are covered, and reassurance your financial future will be protected.

2. Protect Your Assets from Unexpected Life Events

While preparing for unexpected events and establishing an emergency fund, it’s also a good idea to update your beneficiary information to protect your heirs. By doing this, your legacy passes on to the right people, according to your wishes.

Make sure you have these safeguards, and speak with a Relationship Manager if you have any questions about protecting your assets:

  • Living Will: Becoming incapacitated from a temporary illness or injury could result in you being unable to manage your affairs. Preparing Do Not Resuscitate (DNR) orders and Power of Attorney privileges can help safeguard you and your family against issues that result from unexpected incapacitation.
  • Revocable Living Trust: A standard tool used in estate planning designed to allow your property to pass from you to your heirs.
  • Insurance: We’re not experts on insurance, but one thing we do know: If it exists, you can probably get a policy to insure it. Find the right coverage for your family, and protect your peace of mind in the process.

You don’t want a judge determining who should receive your assets because you’re unable to. As you age, your living will and plans for long-term care need to be adjusted, especially if you have a child, move to a new state, start a business, change your relationship status, or become injured.

3. Maintain a Comprehensive Financial Plan

These are all easily attainable pieces of a comprehensive financial plan. Creating, monitoring, and updating your finances throughout life is the only way to ensure that you stay on track to achieve your goals. This plan should be a fluid, living document designed just for you. Most importantly, it should protect your financial future with preparations for life’s unexpected events.

Start building your future with experts who can help guide your finances through whatever comes your way. Speak with a Relationship Manager at AAFMAA Wealth Management & Trust today!

This article was originally published October 17, 2019.