At some point in someone’s life, chances are that they have been told by their parents, relatives, friends, or mentors that it is important to invest. That moment usually happens when someone is about to embark on their professional journey, about to start a business, just graduated fresh out of school, or maybe to someone who is just about to start all over again. Considering the fact that we are all coming from diverse backgrounds with unique sets of values and beliefs, it is guaranteed that we see investment differently.
Why Insurance is Important?
Out of all the possible options for investment, has the thought of insurance ever crossed your mind? Did someone ever recommend it to you? People may have varying opinions about it. Some might consider it as a safety net, while some might think that it is a game of gamble.
Insurance can be complex and can either be any of the two depending on how you look at it. In this article, we’ll look at insurance as a safety net, and here are the reasons why.
1. To be guided on matters you find overwhelming
For Business Owners
Just like what they always say, experience is the best teacher. With the situation for the past two years, by now, we should have learned the cost of a pandemic. Scenes that were once only seen in movies have become, and unfortunately still a reality in the 21st century. With businesses closing, the economy takes the hit. For businesses who have insurance, there have been talks and possible amendments that the pandemic may be covered under Business Interruption.
However, conditions covered by the said insurance may vary depending on the terms of the plan or package agreement of the insurer. With the help of Insurance Brokers, you get to be educated about the coverage of your business insurance plan. They can guide you on possible claims such as your business being unable to operate or loss of income due to the pandemic. They’ll help you review your budget and inform you of the latest state and legislative plans to support your business.
For Individuals and Families
In light of the point discussed for businesses, individuals and families are the ones who have experienced the first-hand effect of businesses closing, most especially for those who used to work for them as a source of income. Having business insurance for your company would help the backbone of your business, the employees, to be covered. In most cases, the ‘big guys’ of a company tend to survive despite business interruptions due to privilege, but the average Joes can’t. It will take a toll on their living expenses and might affect the entirety of their life plans.
Considering business insurance for any entity does not only protect the company or the owner, but it also safeguards the “hows” of operation and the “whos” of the business resources.
2. To prepare for the unforeseeable
Still taking pandemic into consideration, it is a worldwide fact how Covid-19 threatened and changed everyone’s health. For the lucky ones who were able to recover despite having critical symptoms and survived a life-threatening situation, insurance is instant principal security. Health Maintenance Organization, or more commonly known as HMO, is a type of insurance that is a good option for those who are just starting in insurance. HMO is an insurance that does not require a lot of paperwork, but you get to have a doctor to manage your health and refer you to specialists should you need one.
For individuals who work for companies and have been diagnosed with Covid-19 or a threatening condition, another example of a beneficial type of insurance would be Income Protection insurance.
Having insurance when you’re unable to report to work due to critical diagnosis, not only the Coronavirus, lets your income flow continuously. It backs up your Sick Leaves which are most of the time only limited to two weeks. If you’re lucky enough to be treated in weeks with a critical diagnosis or accident, then it’s good. However, the average time for someone to fully recover after such an event takes a while. For most cases, it takes months. Having insurance when an unforeseeable event occurs, eases your budget’s movement.
3. To lessen the burden of those who’ll be left behind
Now, considering this factor means that you are open to the idea of death occurring. This may be a sensitive factor for some, but it is inevitable and the only determining fact in life. If you have families and dependents, this is something you might want for your loved ones. One thing that Insurance is surely prominent for is that a hefty sum of money will be received by dependents after the insured’s death. And it’s true.
Being open to a future for your family without you in the picture is hard to envision. But seeing a picture where they’ll be struggling due to your loss is harder. Processing a loved one’s unexpected death can take tolls not only on the entire family’s mental health but as well as their financial security. Knowing that you’ll be able to leave support when something happens, secures your peace of mind, in a way you’ll know for sure that your family will be able to bounce back on track as they deal with grief.
4. If you’re considering it, you might as well get it
If the thought of insurance has been with you for years, or if it’s something that you’ve always wondered about, then maybe it’s time that you finally go for it.
Another feature that insurance is known for is that you get to pay for your premiums in a budget-friendly manner. If you’re able to allocate at least 10 to 15 percent of your income monthly, it is usually enough for you to start on your insurance game plan. If you’re still in doubt of the “hows” and the “whats” of Insurance, maybe considering advice from an Insurance Broker might be the best first step you can take before getting into it. It will help you understand the basics and assess your financial situation accordingly.
To Sum it up..
Regardless of the reason as to why you’re getting insurance, it all boils down to one point: Financial security. The reason as to why we’re being told to start insurance in the first place. We consider it because we want to secure our future. We want to make sure that when the time comes, and we find ourselves suddenly driving downhill, we get to take a step on the brake, take control of the gear, and shift it back to reverse.
Will you consider insurance as your next investment option? Let us know what you think!