Good financial planning can help you avoid or reduce the risk of these financial disasters:

1. Dying Too Soon

No one likes the thought, but some die sooner than expected. The least one can do is make sure there is adequate life insurance to take care of the needs of their family and other heirs.

Life insurance is basic to every sound financial plan. If you still have dependent children, adequate life insurance is even more critical. The amount should be adequate to cover any final illness expenses, burial, family living needs, education, etc. Most people have insufficient coverage, but some coverage is at least better than none.

2. Becoming Disabled

Have you ever considered what would happen to your family if you became disabled — no longer able to provide family financial support. Protecting yourself and your family from the financial effects of disability is essential and can be done by having adequate disability insurance. Otherwise, your disability could cause drastic changes in your family’s lifestyle. This is true whether the disability is temporary or permanent.

Think of disability insurance as “income insurance” in the event of your disability. Most disabilities are not related to accidents and injuries. Neglecting disability insurance protection can be costly.

3. Living Too Long

Most people understand the consequences of dying too soon, but most probably do not adequate foresee the danger in outliving their incomes. People are living longer. With inflation, more and more elderly folks find they can’t afford those things they consider necessities.

Sound financial planning includes saving adequate amounts to fund your retirement years, no matter how long you live. Former first lady Eleanor Roosevelt said, “It takes as much energy to wish as it does to plan.” Set concrete, attainable goals for retirement, commit to those goals, then set aside the funds needed to reach that goal. Just do it.

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Don Spencer is Kentucky Baptist Convention Church Financial Benefits Consultant.