The Importance of Insurance

Wikipedia defines insurance as a contract between the policy owner and the insurer, where the insurer agrees to pay a designated beneficiary a sum of money upon the occurrence of the insured individual's or individuals' death or other event, such as terminal illness or critical illness.

We found that nowdays, insurance is some kind of necessity besides foods, homes, and clothes. Insurance is not a wants anymore, but it a must for human being. 

In simple word, insurance provides economic protection to the insured or member. Why I said economic protection? If there is no economy affect, someone cannot buy insurance? Hmmm not really!

Okay, we need insurance to protect or cover our economic losses due to loss of event. That is the most important point of having insurance. For instance, I have a job with earning 100K per year, and suddenly I involve an accident that requires me to spend 50K. If I don't have insurance, who is going to cover my losses? Yes, that 50K loss we are talking about! I'm not lying; we are living in 'money oriented' world. Everything needs money. Even free water from God also we need to pay! If they could count or computed time into money, sure they do. So there's no such thing 'I'm vulnerable to the economy'. Definitely there will be economy impact, either from your pocket or some else eg your family, employer or government. 

But how many of you actually have this cover in place? I know of lots of my friends, who are in their 20's (or even in 30's!!) who don't have the cover because 

• they don't know anything about it (lack of education) plus with 'don't care attitude' 
• and they don't think they need it and see it as an extra cost. 

How little they know. Like anything, the earlier you start, the cheaper it is.

Following are 5 important reasons why you should have life insurance and why those around you too should invest in this:

Reason 1

Hello? Do you have any bills, like maybe a mortgage or hire purchase?? This alone is a pertinent reason to have life insurance. It means that should you die, this major bill will be paid off and not left to your survivors to deal with! We should left them happily, not a despair along with the bills they need to settle for you right! 

Reason 2

Young, fit and healthy? No ailments? Then this is the best time to get life assurance! Your premium will be small and if you take out a policy that allows you to keep the same premium until the age of 65, you will have considerable savings. The earlier you start, the better. And then if you develop any health issues throughout your life, it doesn't matter, because you already have the cover in place!

Reason 3

A lot of us don't care about ourselves. Now I want to know are you married? Do you care about your spouse? Then is it not thoughtful to make sure that your spouse does not have to worry about money should you pass before they do and vice versa? I know a couple who cancelled their life insurance and then 6 months later he was diagnosed as having stomach cancer, and died 18 months later. They leaving behind a wife and two children still at home and a mortgage, and worst of all no savings have been made for his family. Is this what you want to put your partner through?

Reason 4

Want to leave a legacy for your future grand children? What better way than ensuring your estate will actually have some legacy to pass on! You can elect in your will to have the proceeds of your life assurance paid directly to your estate and then as per your will, divy up the proceeds.

Reason 5

Peace of mind, yours that is. If you can't afford health insurance or any other insurance, you can afford life insurance at least, and should you develop a critical illness, your life insurance will pay out a lump sum upon confirmation of this, allowing you to fulfil any dreams you have not achieved or to get your affairs in order.

There are many more reasons I could go into here, but you get the gist. Just like you wouldn't risk not having your car insured or your house or contents. How can you not insure your number one asset, yourself? Wouldn't you?

There are plenty of fantastic financial advisers out there. If you don't have one, a great place to start is your bank; they have trained staff that can guide you. Just make sure you read through any quotes you receive etc and make sure you understand just what you are being covered for.

Or alternatively (should be easier for you I guess), just call me. I will attend to you at any time, any place. Insyaallah. I could be your lifetime adviser!