We have covered the main reasons to have life cover in our previous article regarding an emergency fund; this article looks at the role of protection in our 5-point plan.
Sometimes when we think about financial planning, we assume it is all to do with what we save or invest. It is a common thought due to the need to acquire wealth to help fund our goals and plan for the future.
So, what would happen if you were only 18 months into your plan, then a sudden illness struck, or worse, death occurred? Most people forget that the protection of loved ones is a basic plan in building your future. Without this essential element in place, all the planning in the world will not replace the financial heartache of losing a loved one or the breadwinner in the household.
Look at how we treat health insurance? Why do so many of us take the risk by not insuring the potential financial hardship, should we have to pay a medical bill when there is no cover in place.
Looking one step away from the emergency fund, what about covering our essential loans or mortgage? Unfortunately, even these can go unprotected, and this leaves liability to the ones left behind.
I think you can understand now where I’m coming from? Protection takes away the underlying worry of a ‘what if’ scenario? It indeed allows peace of mind and can mean that you are then ready to start thinking about the future.
To look at this area in-depth, we believe that you need to think about all areas affected by illness, loss of a job or worse, death. Having someone take you through the maze of it all will undoubtedly help you start your journey to financial well-being.
Always look at the benefit of starting early with your plan; this means typically cheaper premiums. Also, think about what type of plan you need; there are many varieties, depending on what you are looking to cover, life, illness, health, and loss of income, so choosing the right plan means you’ll have cover for the unexpected events life throws at you.
Now we know how important this subject is, be sure to protect your loved ones against an untimely loss; with Corestone, you are always the main priority of our focus, helping you with every step to your financial freedom.
Next week we will cover Pension & Retirement, step three in our 5 Point Plan. Corestone, where informed decisions are the best decisions.