The Significance of Insurance in Your Financial Plan

Bryan Jackson June 26, 2017 Comments Off on The Significance of Insurance in Your Financial Plan
The Significance of Insurance in Your Financial Plan

Insurance is a crucial aspect of every sound financial plan. But most of the time it’s the least-understood financial service. Investing in a good insurance plan reimburses individuals for co losses in case of an unexpected ill-fated incident like accident, illness, or even death. If you are new to this vertical and don’t know where to start you can seek assistance from expert financial services brokers like The Rothenberg Group, who can help you evaluate your needs and opt for the right insurance plan.

It’s high time that people who have not invested in an insurance policy for their assets realize its importance and get one at the earliest. This write-up aims at helping people realize the significance that insurance has in any sound financial plan.  

Why Is Insurance Important?

The goal of most individuals as far as financial planning is concerned is accumulation of wealth, but what if you don’t have the right insurance coverage? Your accumulated wealth could be ruined due to unexpected life events or accidents. So, insurance is a crucial aspect of proper financial planning.  

The main purpose of getting an insurance policy is to safeguard yourself against losses that you cannot afford. Until something unfortunate happens, it may seem like purchasing something that you would never use. However, even if you don’t submit a claim, this kind of financial plan is an investment in your future as crucial as personal investments and pensions. In fact, several financial professionals emphasize on having a proper insurance safety net right in place even before sketching out any investment strategies. Such is its importance.

There’s an insurance policy for all your needs – ranging from vehicle insurance, life insurance, and home insurance to liability insurance, disability insurance, critical illness insurance and long term care insurance.

A Real Life Example

Now let’s consider a real life example. Let’s say, a sudden disability stops you from continuing with your job. What would happen? Your income would fall drastically. If you don’t have an insurance policy in place, you might have no other option but tapping into your savings or even your retirement funds to meet the present living expenditures. So, that’s how important insurance policies are in any financial plan.

Now that you know how critical insurance planning is, do consider consulting a financial services broker to help you choose the right insurance policies for your needs.

 

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