Times of tragedy and loss can, unfortunately, set up a family for financial ruin. Thankfully, there are ways to try to prevent financial ruin before it happens!
No one wants to talk about it, but the truth is that many families are just one job loss, one illness, and one tragedy away from financial ruin.
When we aren’t prepared for economic emergencies, it’s not only we who suffer–it’s our families as well.
The good news is that there are real, tangible ways to prepare now to prevent financial ruin during a loss.
Check out the following four.
4 Ways to Prevent Financial Ruin During a Loss
1. Set up an emergency fund.
While this won’t be enough to cover expenses during a major loss, most financial experts recommend starting out with an emergency fund of $1,000 and building on it until you reach six to eighteen months of living expenses.
The idea is to replenish the $1,000 as soon as you use it and to continue to stock away money for emergency situations.
Having an emergency fund will take away so much stress because you know there is always some money stored away in the event of a loss.
2. Research fundraising sites.
The advent of the online community has come with plenty of bad–but it’s also come with an abundance of good.
One of those positives is that the world at large is now at our fingertips. When a loved one suffers a loss, we can help that person or family raise funds via the internet.
While several sites offer fundraising services, I recently discovered one in particular that aids families who have suffered a loss through fundraising and memorializing their loved ones.
ALittleHelp.com is a community-funding platform for communities to support their friends and family members who have experienced the loss of a loved one, only to find themselves in an unplanned financial struggle.
It’s also a platform to celebrate the lives of those we’ve lost.
ALittleHelp can help raise funds for:
- Funeral and memorial service expenses
- Medical bills after a loss
- Mortgage or rent for those left behind
- School/college tuition for children left behind
- Car payment
- Child care
Unlike other fundraising sites, ALittleHelp doesn’t keep any portion of contributions and is sponsored by a life insurance company who has over 65 years of experience.
Check out the following video for a more thorough introduction to ALittleHelp:
3. Accept help.
It seems ingrained in our American culture: We don’t like asking for help.
But especially during times of loss, we need our communities to step in and help take away the very real burden of grief and financial hardship.
Whether it’s accepting meals or gift cards for restaurants so you don’t have to cook or pay for groceries, or financial help through a fundraising site like ALittleHelp, accepting help during times of loss can help us prevent financial ruin during a loss.
4. Secure good insurance.
While I know not everyone can afford it, securing solid health and life insurance should be a financial goal as soon as you have the finances to do so.
An affordable alternative to health insurance is a health share plan, which is something my family is currently exploring.
One illness or tragedy can set a family back for a years. The best way to prevent medical and loss debt is to secure solid health and life insurance before a loss happens.
Many who pass leave huge medical bills behind. And life insurance policies pay for more than funeral and memorial expenses. They also for mortgages, food and necessities for families left behind, and educational needs for children of those who have passed away.
ALittleHelp.com is sponsored by Legal & General America, a life insurance company that is part of the worldwide Legal & General Group.
What are some of your tips for how to prevent financial ruin during a loss?
Thank you, ALittleHelp, for underwriting this post and for providing a venue for community-based fundraising.
This is a sponsored conversation written by me on behalf of ALittleHelp. The opinions and text are all mine.
This brings much to the surface for me , in 1999 , When my wife and I bought our home , it was truly a Godsend . We were able to come up with a down payment even get an offer for owner financing for our 15 year loan . We took money from our 401k . Then , 2 months later I was diagnosed with Leukemia . We had taken a little extra for some improvements to the house . We ended up using that money to pay for a portion of my treatments . We were so not prepared for this to happen ! But then again we were very blessed . I was in remission , then it returned in a different manner . Polycythemia Vera . now it has moved on to Mylelofibrosis. But we are still not as bad off as some who encounter these things . Erin , your articles and posts are very inspiring and enlightening . thanks !
Good thoughts. As much as we do not even like to think about it, we decided to have small insurance policies on our children because the last thing we need to do in the event of a loss is have to think about money.