Being smart about life insurance

Being smart about life insurance

Rather than looking at life insurance as something we need, it should be considered as something we want. It’s more about having peace of mind knowing that if things don’t exactly work out the way we want, it’s not the end. 

And who wouldn't want that? 

The problem is that life insurance is a very intangible thing and it’s only used at the time of grief – and no one wants to think about that.

The other problem is that our human nature loves shortcuts. We often seek the cheapest, the easiest, and the least painful way to obtain life insurance because, subconsciously, we don’t want to overcome the fear of new experience and seek a professional’s help.

 And that in itself is a tragedy waiting to happen.

We all make future plans for our family or a business. We assume these plans will be successful – pay off the mortgage, save for regular ski trips, having regular holidays, give our children education they deserve, retire worry-free, build our family’s wealth, grow our business, or how about simply maintaining and enjoying the good lifestyle, spending as much time as possible with the family and generally being happy… does it ring a bell?

I am no different and I sincerely hope you will be able to achieve all of them and more. But hoping is not planning and smart people have a plan in place. 

Proper planning requires relevant expertise.  There is no harm in 'googling' information and gaining some self-education prior to seeking help. We all do it every day. But when it comes to decision making there is simply too much to consider and you want to get every detail right. 

Only a qualified and experienced financial planner will be able to:

• help you dig deep and articulate everything you value and need to plan for

• translate it into financial terms and calculate the dollar figures reflecting the cost of not being able to achieve these

• evaluate all the risks and asses the probabilities of them happening

• work out a relevant protection strategy including appropriate types of cover, sums insured, structuring, ownership and potential tax consequences

• consider alternatives and recommend a suitable insurer that will pay the claim

Every single step can make a huge difference. At the end of the day, you want to have the confidence that if needed, the cover will be used for what it is intended– to pay your claim.

Hiring a financial planner means having a professional looking at your personal circumstances and recommending a tailored solution that fits your plans, reviewing its appropriateness over time, as well as helping you through the overwhelming process of making a claim. 

So if you’re considering insurance or you have some in place but you never consulted a financial planner, I hope I've inspired you to take action. Your family or your business partner might thank you one day.

by Michal Bodi

Image courtesy of Vichaya Kiatying-Angsulee  / FreeDigitalPhotos.net