Ways to Prepare for Unexpected Financial Events

Tue 18th Jun, 2019

One of the most important elements of financial planning is accounting for unexpected financial events. This article helps you consider a range of financial events such as medical expenses, disability, death, home repairs and major appliance replacement, and suggests how you can prepare for them financially.


  1. Health and Disability Insurance



Take the time to research insurance providers and their offerings so you can prepare for your family’s needs. No one is completely immune to the risk of a health issue or the possibility of a serious accident. The unplanned need for medical care, surgery, treatments and medications can lead to a rapidly growing mountain of bills. By securing health and disability insurance you can help mitigate this potential future financial burden.


  1. Property Maintenance



The key to avoiding expensive home repairs is to adopt healthy home care habits and keep your home in top shape. Three key areas of attention include:

  1. Roof Inspection: Annual roof checks help to prevent minor problems from spiraling out of control. Look out for materials that are curling, buckling or blistering and be sure to clear leaves and debris from gutters to prevent blockages.
  2. Plumbing: Even seemingly small water leaks can lead to major water damage, so be mindful to repair leaks as soon as possible. Also, pay notice to higher risk items such as toilet mechanisms, clogged drains, and the kitchen sink.
  • Termites: Wooden furniture and moist conditions attract termites, so be sure to repair leaky pipes and observe wooden furniture for any signs of termites. Consider using termite-resistant or treated wood to minimize conditions ideal for these pests.


  1. Home Equity



Home Equity refers to the difference between the market value of your property and any outstanding debt you have on this property. You can use a home equity loan to finance major expenses such as long-term investment products, tertiary education, unforeseen medical bills or home improvement projects. It is prudent to keep your mortgage payments up-to-date to help ensure you can benefit from home equity financing.


  1. Mortgage Cover



Mortgage Cover is an insurance policy that safeguards your TTMF mortgage and by extension, your home, in the event that you die unexpectedly. The plan ensures that your family won’t lose the home if you pass away, as the outstanding loan balance will be paid off.


  1. Savings



Another smart way to prepare for unforeseen financial events is to put aside savings from every pay cheque so that you are ready for any unexpected expense. Whether it’s needing to replace a major appliance or help your family with an unforeseen urgent bill, building an emergency fund that can be used in these situations can help avoid a great deal of stress.


We hope these tips help you prepare for the unexpected. Don’t hesitate to reach out to us if you’d like to chat further.