Is insurance (life and other types) important?
It is actually so important that many employers have it as an integral part of their employee benefits packages Life insurance, Short and Long term disability, Hospital care, Critical Illness are often covered within a benefits package.
Do you really need it? What good is it? Is the coverage by your employer sufficient? Like other financial products, insurance is a tool. A hammer is tool that most people only think of for driving nails into wood. A hammer can also be used to pull out nails, split rocks, hit a chisel and much more.
Insurance has two basic purposes: - Protect your Investments (including your estate) - Protect your income
We all would like to think we will live a long healthy life. What if we get sick and can't work? Where will our income come from?
What if our health has deteriorated to the point where we need on going care? Or if we get Cancer and need special treatment? How will you pay for this?
It might come from your investments but that isn't a good option. That is simply poor financial planning.
What if we pass away prematurely? Will we leave debts behind or will our loved ones be taken care of?
Our Insurance portfolio is just as important as our Investment portfolio. Used correctly and wisely, Insurance offers a great many advantages and is a key part of our financial picture.