Adulting 101 Part 6: SHTF Planning

No one likes planning for the morbid stuff in life, but I think it’s necessary. Life is short, and all it takes is a few steps to go wrong for it to be snuffed out. You can’t control the winds of fate, but you can control what happens to you when shtf.


Disability Insurance


Starting from the least morbid, disability insurance insures you against any situation that impairs your ability to work. Disability usually isn’t cheap, costing around 3% of your annual wage. If you can’t afford it, then you probably shouldn’t get it. If you get into an accident, disability insurance will pay a percentage of your income out to you for the rest of your life.


Advance Directive


I’m a little bit of a hypochondriac, and have a lot of fears about rare diseases and comas. An advanced directive, or living will, is for when you can no longer make decisions for yourself. The most common association for advance directives are comas. Advance directives can be used to specify what you want done should you fall in such a situation, and take precedence over family members in making such a decision. 


Life Insurance


While you may not have people financially dependent on you, getting a life insurance plan may still be a good idea. Your premiums will be the cheapest when you’re young and healthy, and if you do plan on starting a family anytime in the future, buying one now will save a lot of money down the road. You may also have a sponsored-plan offered by your employer, which will cheapen your plan.


Last Will and Testament


The last will and testament is the father of SHTF planning, and Power of Attorney will be most necessary here. Estate planning will involve how your financials and net worth is divided up to your beneficiaries. That being said, while a will may be used to distribute your assets, it can also be used to bring closure and state your wishes in the letter of wishes section of your will.


Life happens. Sometimes it doesn’t. It’s good to think about this stuff, especially since a lot of people don’t. You’re not just buying a policy or an executor, but also peace of mind, and I think that’s the best thing money can buy.

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