Three Tips to Protect Your Family Now
IstockphotoFrom Health magazine
Create a will.
Without this legal document, your possessions and even your children may become subject to state law, which means the fate of your property and the custody of your kids could be left up to the state instead of you, Health money expert Lynnette Khalfani-Cox says. If you have a lawyer draft your will, the cost can range from $200 to $600. You also can create your own will on LegalZoom.com or BuildAWill.com for $70 or less.
Get life insurance.
“If you qualify, you can get an affordable 20-year plan for the price of a pizza every month,” Khalfani-Cox says. Basically, life insurance should provide 5 to 10 times the amount of your salary in the event that you die. Update beneficiary information every year.
Save now for college.
With the cost of college skyrocketing, saving what you can now is a good idea. One option: state-sponsored 529 plans, in which all the money invested is designated for higher education. The funds can be used for any school, not just an in-state college.