When Disaster Strikes

Transcription

1 F O R F O R Y O U R Y O U R L I F E R E T I R E M E N T When Disaster Strikes

2 What s inside Be Prepared Secure the Basics... 2 Be Prepared Financially... 3 Financial Organization Disaster Supplies Checklist.... 7

3 F O R Y O U R F O R F O R B U S I N E S S Y O U R Y O U R L I F E R E T I R E M E N T When Disaster Strikes W hen disaster strikes, there may not be time to think about your next steps. Often, decisions need to be made swiftly. That s why it s critical to plan for the unexpected before it happens. Having a disaster plan starts with the basics you ll need to consider family, food, and shelter. Use this article as a guide to help you establish a family emergency plan outlining basic, as well as financial needs, in the event of an emergency.

4 2 When Disaster Strikes Be Prepared Secure the Basics When disaster strikes, there are many concerns that will immediately come to you. If your family is not with you, you will be concerned for their welfare. Are they OK? Where are they? What should you do now? To help you answer these questions in a time of crisis, create a family disaster plan with members of your family today, so that you are prepared for tomorrow. Create a Family Disaster Plan n Choose two locations where your family can meet in times of crisis. One location should be near your home; another should be outside of your neighborhood, in the event that your entire neighborhood is affected by the disaster. n Choose an out-of-state friend or relative as a check-in contact for everyone to call. n Post emergency phone numbers by every phone make sure everyone in the family has a copy and keeps it in a convenient location (cell phone, car, work, briefcase, pocketbook, backpack). n Keep fire extinguishers on hand and make sure everyone in the house knows how to use them. Build Your Grab and Go Disaster Supplies Kit If you are required to evacuate your home, you and your family will need to be equipped with critical supplies and resources. Below are some suggestions for the contents of your family s Grab and Go Disaster Supplies Kit. n Water purification tablets n Waterproof matches, lighters, candles n First-aid supplies bandages, gauze pads, adhesive tape, antiseptic, thermometer, petroleum jelly, cleansing agent, sunscreen, tweezers, scissors, needles, safety pins n Extra clothing n Blanket n Non-prescription drugs, such as aspirin or antacid n Battery-operated radio, flashlight n Extra batteries; extra cell phone batteries

5 When Disaster Strikes 3 n Manual can opener n Food, such as granola bars or trail mix n Tape n Whistle n Compass, map of area, signal flares n Copies of important documents, including identification, financial, medical, prescriptions, etc. Did You Know If you are in the 100-year flood plain, your home is five times more likely to be damaged by flood than by fire. Source: fema.gov For a more complete list of other emergency supplies, refer to the Disaster Supplies Checklist on page 7. Be Prepared Financially Much has been written and discussed about the prudence of having a family emergency plan that defines where your family should meet, lists emergency contacts, and calls for an emergency kit with important supplies. But planning for a disaster goes beyond those critical components you also need a plan for your most important financial documents. Their future retrieval will be a critical component when you need to make important financial decisions in precarious times. With disasters comes a financial impact. Of course, the type of the disaster and the extent of its impact on you, your family, and your home will determine exactly how high that financial toll will reach. To be as prepared as possible, it s time to get your financial house in order. Consider the following, and take the important first steps to being prepared financially. Have the Right Insurance Protection n Protect the well-being of yourself and your loved ones. Be sure that you have the proper amount of medical, disability, long-term care, and life insurance. Work with a qualified financial professional or insurance agent to determine the type and amount of insurance you need. n Protect your home. Be sure to have an adequate amount of renter s or homeowner s insurance to protect your home and valuables. Ideally, you should purchase full replacement or replacement cost coverage, which allows the

6 4 When Disaster Strikes structure to be replaced (up to the limits specified in the policy). Have your home periodically appraised to ensure that your policy reflects its current replacement costs and update the policy to include any home improvements. Make sure you understand what the policy will and will not cover, and the amount of your deductible. n Flood insurance. Depending on where you live, you may want to consider flood insurance. Visit floodsmart.gov for more complete information about how to obtain flood insurance. You can also reach the National Flood Insurance Call Center at Helpful Hint Building an emergency cash reserve account can be difficult. Here are some suggestions of how you can start saving today. n Make a habit of putting daily loose change in a jar. At the end of the month, you could have $50 or more to deposit into a bank or money market account. n Make a sacrifice. Choose to cut back on buying lunches (brown bag it!), going out to eat at restaurants, or daily gourmet coffees (brew your own at home). Put these funds aside and deposit into your emergency account on a regular basis. n Earthquake insurance. While premiums and deductibles for earthquake insurance are high, it may be worth it depending on where you live. Work with your agent to ask about coverage and determine the policy that is appropriate for you. n Riders. Consider purchasing riders to cover more expensive items, such as computer equipment, artwork, jewelry, etc. n Copies of your insurance policies. Include contact information for your insurance agents in your Grab and Go Disaster Supplies Kit. Prepare for Disruptions in Income n Quick cash flow. Put aside emergency cash funds, including traveler s checks and coins. Include this in your Grab and Go Disaster Supplies Kit. Set aside enough cash reserves for your family to live for a minimum of three days, outside of your home and without access to an ATM or money machine. It is likely that, in a disaster, the power will be down and ATMs and credit card processing machines will be down as well. Banks may even be closed. n Longer-term emergency funds. Financial professionals agree that a prudent personal financial preparedness plan includes an emergency fund that could cover your bills for three to six months. Be sure that these funds are in an account that is easy to access, such as a bank savings account or money market account.

7 When Disaster Strikes 5 Include copies of your bank and money market account statements in your Grab and Go Disaster Supplies Kit. See page 6 for information about MainStay s LifeFolio Checklist a tool to help you organize these important financial documents. Looking for Extra Cash? n Check for special disaster relief funds from federal, state, and local governments. Please note that disaster relief funds may only be available for primary residences, and may not be available for secondary or vacation residences. n Check with your company-sponsored retirement plan about the possibility Helpful Hint n Consider storing originals or copies of important documents in a safe deposit box at a bank that is not close to your home. This reduces the chance that the bank will be affected by the same disaster. n Consider storing documents in a home safe that is waterproof and can withstand temperatures of up to 1,700 degrees. Be sure someone you trust knows where the safe is kept, as well as where the key or combination is kept. of borrowing against your plan. Taking a loan rather than a withdrawal is recommended, to avoid tax consequences. A loan, though, may impede the potential growth of your retirement assets. Find out what rules and restrictions apply, if any. n Consider taking a loan or withdrawing some of the cash value from your whole life or universal life insurance policy. Keep in mind that policy loans will accrue interest at the current rate. Unpaid loans and withdrawals will reduce the death benefit and cash value of the policy and may cause the policy to lapse. n Speak with your financial professional or agent to determine the best sources of cash given your personal situation before making any decisions. Gain Control of Debt n One key step to prepare for the unexpected is to gain control over any debt that you may have. Paying down credit cards as much as possible will help ensure that you have access to more credit in an emergency. n A good rule of thumb is to pay off your credit cards with the highest interest rates first. If it is not possible to pay off the entire amount, at least pay more than the minimum required each month. n Include copies of loan and credit card statements (include account numbers and contact information) in your Grab and Go Disaster Supplies Kit.

8 Your Name: Your Address: Name: Phone Number: FOR YOUR LIFE 6 When Disaster Strikes Financial Organization A Critical Step to Disaster Preparedness Most people don t discuss the location of their most important documents with their family, or even spouse. In times of need, it can be difficult to track down these documents, at best. At worst, critical information may be lost forever. Often, it s the events that happen to us that remind us how important it is to access our key financial documents. When a natural (or other type of) disaster strikes suddenly, most will not be in the right frame of mind to determine which documents are the most important to retrieve let alone where to find them. Helpful Hint Make a copy of your LifeFolio Checklist and most important financial documents. n Include them in your Grab and Go Disaster Supplies Kit. n Send them in a sealed envelope to a close friend or relative in a different part of the country. MainStay s LifeFolio Checklist MainStay Investments has developed a simple, yet highly effective Organizing our lives has become a popular theme. However, if hard pressed, most people will have a difficult time locating their critical documents when a major life event occurs. If you have any further questions, please call your financial professional: LifeFolio Checklist Whether you are changing jobs, buying a home, caring for an aging loved one, experiencing a death in the family, or planning your retirement, events can send you into a document search tailspin. Just think about how many documents the bank requests when you apply for your home mortgage or the litany of current and historical documents that are needed to settle an estate when someone has died. Because we don t tend to deliberately sit down and document everything we have or might need to prepare for such events, unexpected circumstances send most of us scurrying to collect what is required. The LifeFolio Checklist will help you and your family organize the key aspects of your life in an easy-to-complete way that you can share with those close to you, as well as your financial professional, attorney, accountant, and your executor. Experience has shown us that this may be one of the easiest, but most important gifts you can give yourself and your family. tool that can help you gather your important documents, as well as organize them. MainStay s LifeFolio Checklist is designed to be your central document for financial organization. The LifeFolio Checklist will help you organize key documents, and then serve as the most important document you ll want to locate in a critical situation. Experience has shown us that this may be one of the easiest, but most important gifts you can give yourself and your family. n Speak with your financial professional today to order your copy of MainStay s LifeFolio Checklist. n Then, locate and gather your important documents (will, insurance policies, retirement account statements, titles/deeds, investment and annuity statements, utilities, etc.). n Select a filing cabinet with drop files, preferably waterproof and fireproof. n Complete the LifeFolio Checklist. n Create a home filing system. See mainstayinvestments.com for complete details or ask your financial professional for MainStay s LifeFolio Home Filing System kit. n Contact your executor/executrix using the sample letter found on our web site: mainstayinvestments.com>investor Education>Life Matters>MainStay LifeFolio Home Filing System (under LifeFolio section). See the Letter of instruction" link under EMERGENCY ITEMS AND CONTACTS. n Update MainStay s LifeFolio Checklist and your files at least every six months.

9 When Disaster Strikes 7 Disaster Supplies Checklist The following list is to help you determine what to include in your complete Disaster Supplies Kit. First-Aid q Adhesive bandages, various sizes q 5" x 9" sterile dressing q Conforming roller gauze bandage q Triangular bandages q 3" x 3" sterile gauze pads q 4" x 4" sterile gauze pads q 3" roll cohesive bandage q Germicidal hand wipes or waterless, alcohol-based hand sanitizer q Antiseptic wipes q Large, medical-grade, non-latex gloves q Tongue depressor blades q 2" width adhesive tape q Antibacterial ointment q Cold pack q Scissors (small, personal) q Tweezers q Assorted sizes of safety pins q Cotton balls q Thermometer q Tube of petroleum jelly or other lubricant q Sunscreen q CPR breathing barrier, such as a face shield q First-aid manual Non-Prescription and Prescription Medicine q Aspirin and non-aspirin pain reliever q Anti-diarrhea medication q Antacid q Laxative q Vitamins q Prescriptions q Extra eyeglasses/contact lenses q Contact lens solutions Sanitation and Hygiene q Washcloth and towel q Towelettes, soap, hand sanitizer q Toothpaste, tooth brushes q Shampoo, comb, and brush q Deodorants, sunscreen q Razor, shaving cream q Lip balm q Feminine supplies q Disinfectant and household chlorine bleach q A small shovel q Toilet paper q Mirror q Diapers Food and Water q Water (up to one gallon per person, per day) q Ready-to-eat meats, fruits, and vegetables q Canned or boxed juices, milk, and soup q High-energy foods such as peanut butter, jelly, low-sodium crackers, granola bars, and trail mix q Special foods for infants or persons on special diets q Cookies, hard candy q Instant coffee q Cereal q Powdered milk q Sugar, salt and pepper Equipment and Tools q Portable, battery-powered radio or television q NOAA Weather Radio q Flashlight/lantern q Signal flare q Matches in a waterproof container (or waterproof matches) q Shut-off wrench, pliers, shovel, and other tools q Duct tape and scissors

10 8 When Disaster Strikes q Plastic sheeting q Whistle q Small canister, ABC-type fire extinguisher q Tube tent q Compass q Manual can opener q Mess kits or paper cups, plates, and plastic utensils q All-purpose knife q Water purification tablets or filters q Aluminum foil and plastic wrap q Resealable plastic bags q Small cooking stove and a can of cooking fuel (if food must be cooked) q Insect repellent q Heavy-duty plastic garbage bags and ties q Medium-sized plastic bucket with tight lid q Work gloves q Battery-operated travel alarm clock q Extra batteries Comfort Items q Games q Cards q Paper, pens, and pencils q Needles and thread q Books q Toys for kids q Extra underwear q Thermal underwear q Sunglasses q Blankets/sleeping bags and pillows Other q Personal identification q Cash and coins q Credit cards q Extra set of house keys and car keys q Inventory of household goods q Emergency contact list and phone numbers q Map of the area and phone numbers of places you could go Copies of the Following q Birth certificate q Marriage certificate q Driver s license q Social Security cards q Passports q Wills q Deeds q Insurance papers q Immunization records q Bank and credit card account numbers q Stocks and bonds Clothes and Bedding q Complete change of clothes q Sturdy shoes or boots q Rain gear q Hat and gloves q Extra socks Disaster checklist taken from fema.gov. For more information on disaster preparedness, visit fema.gov/areyouready.

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12 This material is provided as a resource for information only. Neither New York Life Insurance Company, New York Life Investment Management LLC, their affiliates, nor their representatives provide legal, tax, or accounting advice. You are urged to consult your own legal and tax advisors for advice before implementing any plan. Call: Click: For more information mainstayinvestments.com newyorklifeannuities.com MainStay Investments is a registered service mark and name under which New York Life Investment Management LLC does business. MainStay Investments, an indirect subsidiary of New York Life Insurance Company, New York, NY 10010, provides investment advisory products and services. 1. Fixed annuities issued through New York Life Insurance and Annuity Corporation (NYLIAC), a Delaware Corporation, and a wholly-owned subsidiary of New York Life Insurance Company (NYLIC), 51 Madison Avenue, New York, NY Guarantees related only to fixed annuities and are based on the claims-paying ability of NYLIAC, and do not apply to the investments distributed by NYLIFE Distributors LLC, which will fluctuate with market conditions. 2. Securities are distributed by NYLIFE Distributors LLC, 169 Lackawanna Avenue, Parsippany, New Jersey Not FDIC/NCUA Insured Not a Deposit May Lose Value No Bank Guarantee Not Insured by Any Government Agency NYLIM SMRU MS MSWM41s-08/11