There are a wide variety of life events that can have a significant influence on one's financial situation, from losing one's job or receiving an unexpected medical diagnosis to losing a loved one or declaring bankruptcy. While life insurance is one preventive measure that can help individuals, couples, and families weather life's unexpected storms, there are several other ways. Here's what you should do to help you avoid unexpected financial problems.

3 Tips to Help Avoid Unexpected Financial Problems

1. Purchase Life Insurance

If your spouse or another close family member passes away unexpectedly, having adequate life insurance coverage will ease the financial burden. The money from the policy can be used to settle outstanding bills, pay off the mortgage, and cover other costs. Insuring your family is crucial if you have any kind of dependents. Keep that money set aside to aid with college tuition and related fees, as well as any other child care expenses you may incur. You can choose policies that work with your finances and meet your specific requirements.

2. Don't Forget About Retirement

Unhappily, many people may not have adequately prepared for their golden years by saving enough money. Put money into a 401(k) plan if your company offers one if you haven't previously. In most cases, employers will double their workers' contributions up to a predetermined limit. If you are self-employed, you should discuss retirement savings options with a financial counselor. You can begin at any time. Moreover, if you've worked continuously throughout your adult life, you may be eligible for Social Security benefits when you retire. These government payments can be supplemented with personal retirement savings or life insurance payouts to help cover basic living costs.

3. Build a Safety Net

Having a savings cushion that can be used to pay for necessities like rent and groceries can be a huge relief. Think about putting away at least three months' worth of salary, preferably six. Aim for at least a year if you want to have money set aside in case of unemployment or other circumstances that can significantly reduce your income. Avoid the temptation to use the fund for non-emergency purchases.

If you're ready to invest in a comprehensive life insurance policy for your loved ones, turn to the professionals at Western States Insurance Group Inc. in Lovington, NM. These reputable agents are proud to offer a broad range of coverage options to residents throughout the area. Visit them online or call (575) 396-1318 to learn more today.  Follow their Facebook and Twitter for the latest news and updates.