Don’t Let Finances Take a Back Seat to Health in 2021

financial health

As the New Year rolls around, many people resolve to reach new goals in the coming year. While New Year’s resolutions generally revolve around health, weight loss or exercise, what if you went outside the norm this year?

There’s nothing wrong with wanting to make yourself physically and mentally healthier. However, the value of financial health is often overlooked. 

Financial stress can negatively affect your health, including being a contributing factor to chronic health problems, according to the American Psychological Association.

Focusing on your financial health can make a world of difference.

Here are our top reasons to focus on your financial health when making New Year’s resolutions.

Protect loved ones when you pass away

People are living longer than ever before. Harvard Medical School reports the life expectancy in the U.S. rose from 69.9 years to 78.9 years between 1959 and 2014. 

Still, you won’t live forever. Whether you live to a ripe, old age or you pass away unexpectedly, protecting your loved ones with life insurance can provide peace of mind for you and those you leave behind. 

Even if you have savings, a life insurance policy can cover your final costs and provide financial support while your family grieves their loss.

Think about what would happen if you died tomorrow…

What would your loved ones need? Do you have dependents or a spouse who depends on you financially? Are you the homemaker who does things around the house, such as childcare, cooking and cleaning? Will your spouse need to pay someone to help with those services if you were no longer here?

The right life insurance policy can protect your loved ones. If you’re unsure how much you need, use our Needs Assessment Tool to get a quote. 

It’s more affordable than you might think.

Long-term care is expensive

Many older Americans wish to continue living in their homes and “age in place” rather than pay increasingly expensive costs for long-term care.

However, you may not have a choice. Getting older can come with a lot of surprises. Even if your plan was to age in place, life doesn’t always go the way you expect. Long-term care may be a reality, and it isn’t cheap.

If you need long-term care, you may have a specific facility in mind or want to avoid the places that take state aid. Either way, it requires you to create a financial plan now to prepare for the potential future cost.

Otherwise, you risk leaving the financial burden and the decision-making to your loved ones. 

Make a plan now to save and purchase the right insurance policies to cover the cost of long-term care to ensure you’re taken care of if life doesn’t go as planned.

The pandemic opens the door to uncertainty

The COVID-19 pandemic created a cascading effect of soaring unemployment rates and dwindling savings accounts. The deadly virus opened the door to uncertainty and put a spotlight on the financial instability of American households. 

As we go into the next year, it’s time to strengthen your financial habits and put safeguards in place to protect your financial future.

Two areas that can make a significant difference are examining your savings rate and making sure you have enough life insurance. Whether you save $25 per week, $200 per week or more, building the habit of saving will set you up for success for years to come.

Review your life insurance needs and compare them to the policy you have to make sure you’re covered. And if you don’t have a policy in place, you can buy life insurance during a pandemic.

Preparing for your financial future makes you healthier

Focusing on physical health by eating right and exercising is important. But so is your mental health. 

Financial stress can lead to a decline in mental health. A study from the National Institutes of Health (NIH) found that individuals with depression and anxiety were three times more likely to be in debt.

If you’re anxious about the future, it is hard on your mind and body. But resolving to improve your finances can give you peace of mind.

What can you do?

Consider purchasing a life insurance policy, creating a will, contributing to your retirement fund and saving for the future.

Make your New Year’s resolutions matter

Losing ten pounds or exercising more are worthy goals for the new year. But don’t forget about your financial health.

Think about improvements you can make to your finances. When you lower financial stress, it can improve your physical and mental health and make the next year your best one yet.

Amy Beardsley, Author

Amy Beardsley, Author

Amy is a writer who specializes in personal finance and FinTech. She is known for her talent for transforming complex topics into content that’s easy to understand. In her spare time, Amy enjoys camping and serving her community as a Girl Scout leader.

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