Let’s not talk about how frustrating insurance itself can be (we’ll cover that in another topic). Let’s first ask why our insurance-selling friends want us to buy insurance. They know it’s one of the most annoying things coming from a friend, right?
So, we go on the offensive and confront them instead, demanding them to give us a straight answer.
At first, we fully expect that they would launch into an insurance sales pitch, but to our surprise, here’s what they have to say:
1. You’ll encounter bumps along your journey.
Most goals we have in life requires money, and that requires a good financial plan that tells you:
• Where you currently are, financially (eg. monthly cash flow, existing loans);
• How far you are from your goals (eg. Buying a car, or owning a house);
• And how to reach them (eg. how much do you need to save every month).
However, there are setbacks that disrupts your financial journey, from medical bills to accidents, which will delay you from getting that sweet car you have been targetting. That’s where the insurance comes in, saying, “We got you covered.”
2. Ensure unfortunate events won’t affect your loved ones.
Circumstances may catch you off-guard: The car breaks down, a bout of illnesses, job retrenchment, or an unfortunate accident. How would that affect your family?
- If you don’t have insurance: You or your loved ones will have to pay for the bills.
- If you have insurance: The insurance company covers the unexpected expenditures for you.
In fact, for the breadwinner of a family: insurance can ensure your loved ones are cared for should anything unfortunate happens to you.
3. For those who can’t save money for their retirement.
Try out this TAP’s retirement calculator and see how close you are to your retirement goals.
Retirement planning is one of those adult stuff we like to shrug off and try not to think about. We tend to spend too little attention on it, choosing to prioritise on reducing our loans, building wealth and investing in some real estate.
However, having an insurance force you to save for retirement, while also serving to protect you and accumulate wealth. By the time you retire, you will have more than enough for your golden years.
Hmm, they got a point (in this case, three)
The outcome turned out differently than we expected. We gained a new perspective on what is inevitable in life.
So, our financial planning friends remind us that:
- We all need a contingency plan
- Our loved ones should be covered in our plan
- And if you can’t prioritise for your retirement first, insurance will get you covered.
It is now clear that there’s more about insurance than we thought, and we should keep an open mind on the subject.
So what’s next?
Insurance is one aspect of financial planning that requires serious consideration before committing. It is best that you seek counsel from a certified financial planner if you want to delve deeper.
Also, Memori always conducts workshops on legacy planning (which includes financial planning). If you are interested to learn more, click here.
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If any of our stories and information have been inaccurate or incomplete in our coverage, please get in touch with us immediately at ask@memori.io. (Full disclaimer)
Related articles:
- So you want to invest? Don’t do it blindly
- Top 3 Reasons Why Legacy Planning Brings You Closer to a Meaningful Life
- 5 ways why a Will is not just about money
Written by:
Li En Ru — Project Lead at Memori. Content writer with 3 years of experience in copywriting and research. Formerly associate editor at Borneo Bulletin in Brunei. En Ru’s favourite food is this sticky stuff called Ambuyat.
Izaaz Syazwi — Part of Memori’s Digital Marketing team. Experienced in marketing. Copywriting and content creation. Izaaz’s favourite philosopher is Socrates.
Illustration by: insurancememes