Information and Insight for Injured Iowans

5 Documents for the Responsible Adult

Are you prepared for the unexpected? Many people never consider the following five documents until it is too late. Think about getting the following documents which may assist your family in a time of need:

Ø  Medical Directive. No one is immune from a life-threatening disease or serious accident. If a situation arises where you can’t communicate with your doctor, a medical directive serves as a substitute. A medical directive includes two things: a living will and medical health-care proxy. A living will instructs the doctor how to care for you if you are not able to decide for yourself, and a medical health-care proxy names surrogates (such as a spouse or sibling) who can make decisions on your behalf. Although medical directives are legal documents, a lawyer is not needed to complete one.

Ø  Will. If you pass away before making a will, your assets will be divided according to state law. The only way to guarantee that your assets will be divided according to your wishes is to make a will. It is never too early to write a will.

Ø  Disability Insurance. Studies show that you are much more likely to be disabled in an accident than killed. Unfortunately, most people fail to buy disability insurance when they buy life insurance.

Ø  Umbrella Policy. Your regular home and auto policies will protect you but they may not be enough if you or a family member causes serious injury. An umbrella insurance policy is there to cover the expenses that a regular insurance policy cannot.

Ø  Life Insurance. Experts recommend purchasing life insurance as soon as you buy a house to cover the cost of the mortgage. Another piece of advice from the experts: each household should carry an insurance policy worth five to 10 times their annual income.

Smartmoney.com