Many people are resistant to insurance planning. Many people think it's evil. Many people think if they buy insurance, they will lose money and some even think if they buy, bad things will start to happen to them.
Of course those of you who are smart knows that all the above statements are FALSE. Insurance is always about facts and figures. Whether you buy insurance or not, bad things still can happen. Insurance is not created because of fear, but it is created because many people need it and it is based on the facts of life.
In life people can get sick, get critically ill, get disability and die. Unfortunately when one of these happens, many people are in financial trouble, thus insurance are born so that people can have financial safety net. People will be in a better financial situation if they do a proper insurance planning.
So who do you think needs insurance? Let's take a look at the checklist below.
1. If you have debts and liabilities, such as home loan, student loan, car loan, credit card debt, etc.
2. If you are dependant on your income, which means you need your salary to survive and pay your expenses.
3. If you have dependants such as your spouse and children and even parents who rely on you, which means if you are not around or unable to work, they will be in a financial distress.
4. If you do not have sufficient savings, which means an illness or disability can get you bankrupt in no time.
Just take a look at the 4 simple questions above. Ask your self. Really ask your self and answer it truthfully. If you are in 1 of those categories, that means you definitely need insurance. If you don't get the insurance now, you may be screwed if something unexpected happens. It's a fact.
If you are the lucky few who are not in any of the categories above, congratulations! That means you have no debt whatsoever, you are not dependant on your income, your dependants are not relying on you and you already have sufficient savings. You may not need insurance! Yup, you may not need it. But I still can tell you that you can even be better off if you have insurance.
Take me for example. I got sufficient savings if I got sick and need to be hospitalised. But it doesn't mean that I want my money to reduce if I get sick. I rather have my health insurance to pay for all my bills. This way, I still retain all my savings and I just need to pay my small insurance premium.
So take control of your finances now, be better in managing it. Build your savings, grow your investment and transfer your risks. Then you will be on your way to financial freedom.
Cheers! Have a great day.
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