In the maze of financial planning, insurance often feels like a burden. An unwanted cost. Whether it is home insurance required for a mortgage or car insurance for financing, we often view insurance as something forced upon us rather than a valuable asset. But what if we are looking at it all wrong?
Insurance isn’t just a box to tick; it is a shield against the unexpected. Consider this: have you ever spoken to someone who lost their home in a fire? The devastation is physical, but now amplify that further if they lacked insurance to rebuild. Could they afford to start anew? Where would they live in the meantime?
This is the crux of insurance – protection against life’s curveballs, shielding us from scenarios that could otherwise bankrupt us. Let’s look at a couple of examples.
Thabo’s dilemma
Thabo is the backbone of his family, juggling mortgage payments, children’s education and daily expenses – all with his sole income. But what if something happens to Thabo? Without him, the family faces upheaval – relocating schools, losing their home and relying on extended family for support. A relatively inexpensive income protection policy, which pays out Thabo’s salary if he is no longer able to earn anymore, could safeguard against this uncertainty, ensuring security and continuity for his loved ones.
John’s concern
John dreams of providing his children with a quality education but as the main breadwinner, he worries about the implications of an unforeseen event. To secure his family’s future, he opts for an endowment with a savings component, offering a payout if something happens to him or a cash payment after a set period. This way, his children’s education remains within reach, regardless of what happens in the future.
Richard’s revelation
As the executor of his mother’s will, Richard discovers the complexities of winding down her estate. He doesn’t have liquid cash, and because he cannot sell her house, the estate process stalls and his family cannot benefit. But what if Richard had anticipated this? A policy with estate provider benefits could have covered the expenses to wind down the estate, streamlining the process and alleviating financial strain.
In essence, insurance isn’t just about complying with regulations, it’s about proactive risk management, ensuring peace of mind for you and your loved ones. Take the time to assess your vulnerabilities and plan for the unforeseen. Sit down with a trusted advisor and explore your options. The answers may be to ignore a risk, cover it in an alternative manner or even take out insurance. But by planning for it, you have at least thought it through and managed those risks most relevant to you.
Set up a time with one of our insurance experts today. Email us on [email protected].
HRTorQue Financial Services is a registered financial service provider – FSP number 52068