If Covid 19 has taught us anything, it’s the importance of being properly insured for unforeseen health events. One of the big five insurers quoted an increase in claims (death, disability and income protection) of over 50% in the age band 44-70.
We can testify to that from our own experience at Rockfin. While it’s traumatic for our clients and their families, it justifies the reason for our existence which is to help and serve our clients to the best of our ability.
Financial planning can be simplistically explained as the protection of wealth on the one hand, and the creation of wealth on the other. While working on Financial Planning, every aspect like savings and investments, career, family details and needs, taxes and insurance are all considered. While these are all important elements of every plan, the one that ensures there is enough financial protection in place is the role of insurance.
Insurance sometimes takes a back seat because it is not considered to be a necessity. Some of the common reasons for not taking up insurance planning are young people who think they don’t need insurance as they are, in their own estimation, fit enough to survive any unfortunate event. Some also wonder why they should pay insurance premiums every month if they wouldn’t get anything back should they survive the term of the policy.
It is natural on our part to avoid thinking about any unfortunate event that could affect us or our family. We are all wired to think positive, but the essence of insurance is to protect us from the risk of making loss. While emotional loss can never be replaced, financial loss can be replaced or softened by insurance.
For this reason, insurance or risk benefits should be an all-important part of Financial Planning.