Investment planning is a key part of the long-term and short-term financial health of single parents. When choosing investment plans, we typically do not think of insurance as an important investment tool but, even as a shortterm investment, the use of insurance planning can become crucial.
Of the many lines of insurance protection we can purchase, auto insurance, health insurance, and dental insurance are typically the investment choices we make for short term coverage – especially if there is an anticipated expense to be incurred. But, in addition to these shortterm investments, many families are also looking to disability insurance as a possible consideration.
Disability insurance can be purchased as a long term insurance investment but it can also be purchased as a short term investment choice. When picking investments for your short term financial portfolio, as a single parent, be sure to consider disability insurance as a viable option.
Even if you do not have any anticipated disabilities on the horizon, short term disability insurance is going to be crucial to ensuring that you are protected in the even of unemployment. Unlike long term disability insurance, short term disability insurance will provide coverage for family expenses, lost wages, and incident expenses within weeks of your full or partial disability.
While there is no return on investment, ROI, with the purchase of short term disability insurance when it is not used, this is a crucial financial planning tool needed for single parents. To ensure you have income to pay for household expenses and other incident needs of you and your children, disability insurance should be incorporated into your shortterm investments considerations. Without it, you may be relying on other financial investments to support your family on a short term basis and, ultimately, this is not financially healthy or financially savvy.
When meeting with your financial advisor about investment choices for your short term financial health, ask about disability insurance, including both long term disability as well as short term disability. In many cases, your financial advisor can incorporate these shortterm investments into your financial portfolio without much additional effort or cost to you.
Sources: Beyond Paycheck to Paycheck, by Michael Rubin