The Importance of Insurance
The common belief that “it won’t happen to me” often results in many people neglecting to have a sufficient plan to protect the very thing that generates the wealth – themselves! Have you ever heard of doctors falling sick, or Financial Advisors submitting a medical claim for themselves? Are they superhuman or do they have the immunity against sickness and unfortunate events? The answer is no, like anyone of us, chances of meeting with unfortunate events are the same, after all we are only human. And this is where having insurance is important.
For those in the 20s that have just started working, you may or may not have much liabilities such as student loans, therefore the need for insurance might not seem relevant. However, it might be a good time to start learning a thing or two about insurance and its relevance as this is the time parents might be passing on policies that they have bought for you to take over
For young married couples, there is an increased financial commitment such as home mortgage loans, car loans and even family planning. Ensuring that your surviving spouse do not have to worry about the remaining mortgage and your children’s education need becomes your priority. Any surplus that you can have at this stage, should contribute to your retirement planning as it is always good to start early.
For elderly couples, where your children are grown-ups, the need for a long-term care that provides a fixed monthly benefit if you are unable to take care of yourself due to sickness or disability will be more relevant. In addition, it will also be good for you to review your medical policies to ensure that they are in place and up to date as spending on health with increase with age.
Every one of us is different, hence there is a need to sit down with a financial advisor to assist you in understanding your current life situation, identifying your needs and to ensure that you are not under or over-insured.
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