We all dream of a financial windfall at some time and pleasantly enough, this to creates a need to review your personal arrangements, priorities, and plans.
But if not approached with prudence, such windfalls can create significant legal and financial issues for you or your loved ones.
Take your insurance coverage for example. The insurance coverages that were in place may no longer be necessary if the financial windfall is sufficient to accomplish one’s financial goals. Things like disability insurance may be less important since one can now financially handle the loss of income by way of the windfall assets.
Life insurance may need to be decreased, and possibly terminated altogether, but long-term care usually remains a worthwhile coverage to hold onto. With increased assets comes increased exposure and liabilities and as such, the property and casualty coverages should be reviewed. Basic policies may not cover extensive assets or special assets, so find a qualified property and casualty insurance broker who can help you reevaluate your situation.
Last, but certainly not least, make sure you update your will, your preferences in case you become incapacitated, your insurance carrier and contact information as well as the information about how want your affairs handled that you want to leave with others/share with others. And wouldn’t it make sense that this information existed in one place, and was available to people important to you if you were not available to handle your affairs yourself?
Such arrangements eliminate a lot of pain and suffering later, and who doesn’t want that?