If you're going on holiday you'll no doubt have a few tasks on a checklist to be done before you leave - cancel the paper, get someone to feed the cat, arrange for the lawns to be mown, check the oil and tyres on the car and so on. It
may be a busy time of year, but it's also good time to make sure your finances are in order. Here's a checklist of important things to take care of before you go away:
Do you have a safe place where all your important documents are kept, for example, insurance policies, wills, family trust deed, records of any investments, mortgages or loans, birth and marriage certificates, passports etc?
If anything happened to you, would someone else know where to find these documents?
Do you and your partner both have wills? Who else has a copy? Are they up to date?
Do you have adequate insurance cover for your personal possessions?
Do you understand what exclusions, limitations or conditions you have on your insurance cover and what your excess is?
Do you know what to do and who to call if you need to make a claim, especially if you are away from home at the time?
Do you have a list of all your possessions, including serial numbers, photos, or some other evidence of what you own?
Do you have adequate life insurance?
How would your partner and family fare if you were to suffer a serious accident or illness and be unable to work again?
Chances are that you won't need to know the answers to these questions for a long time, but adverse events can often happen without warning. Having your finances in order makes dealing with them much easier.
Liz Koh is a financial adviser. Her disclosure statement can be obtained free of charge by calling 0800 273 847.
www.moneymax.co.nz
