When I was new to personal finance, I thought it was easy to manage my finances. I thought insurance isn’t that much important. I met insurance agents and financial planners from banks, insurance companies, investments firms. They usually talk the same thing. And that is the word “protection”.
It is true that an insurance can give us protection. In many ways, insurance can give us peace of mind, can protect us from financial disaster especially when accident and other unexpected events occurs. Insurance is one of the first thing to consider before investing money. Insurance is a part of an investment but it is not an investment. How’s that?
There is no guaranteed that you can get return when you pay for your insurance premium. A small piece of paper called insurance policy is just a paper. But mind you, you don’t want to pull out your eggs in your investment baskets when you met an accident and you need money to pay the medical bills.
A simple explanation, right? Assuming you are investing in the stock market, and you have noticed that the current value of your portfolio is not that much, you are experiencing loss of capital, and that’s very possible in stock market investing.
Because you’ll never know what will happen next, let’s talk about health and life insurance. Get insured because you’re wise, get insured because you love your family, get insured because you want to protect your assets.
Talk About Insurance Benefits
Now, you want money because you met an accident, will you pull out your investment funds or would you call your insurance company and pay the medical bills for you? I will choose the last option. All you need is call your insurance company, and tell them what happened. Document the incident, take pictures, and show your insurance policy. An insurance company is willing to pay you or give you the benefits you deserve since you are their clients and you are paying for it.
Okay, I think you understand what I really mean when I say that insurance is an income protection. I am talking about insurance particularly on health and life insurance. To make this discussion hot and interesting, here are the suggested topic to discuss in my next article;
- Insurance is an income protection (you’re reading right now).
- Can I invest money without buying health and life insurance first?
- The danger of buying insurance from the wrong insurance agent.
- How much should I pay for an insurance policy?
- and many more things to talk about insurance.
In my next article, let me share to you the other important things to talk about insurance. Insurance is an income protection, right? If you agree, share this page with your friends. Thank you!