Expats in Asia: Must-have insurance you can’t afford to be without
Written by Stephen Bottomley on April 04, 2018.
Financial planning is all about creating wealth, right?
Well...yes and no. Saving – whether it is to stave off poverty in retirement/put your moody teens through school and university/buy that beachside holiday pad/insert your financial goal here – is the most obvious objective of financial planning but there is another which many people neglect: protecting that hard-earned wealth.
Why bother with wealth protection? Because your hard-earned assets could easily be wiped out by an unforeseen event.
Think that won’t happen to you? Well, that’s what lots of people think… until it is too late.
Unless you have magic superpowers and can predict with absolute certainty that cancer won’t come calling or that a dog won’t fall on your head and kill you (yes, it happened, in Argentina) then you just won’t know whether life insurance or health insurance are worth purchasing.
But having seen many times over just how quickly savings can be decimated by unpredictable life events and how that throws family finances into chaos and turmoil, I know that they are. That’s why for me life and health insurance are must haves for anyone who takes their financial planning seriously. It’s all about peace of mind.
Life insurance protects what is probably your most valuable asset. That’s not your home, your car, or even your yacht, it is your potential to earn. So if you, as the family breadwinner, were to fall victim to a falling dog, how would your family cope financially? With life insurance, you don’t need to worry about it as you know the lump sum payout will have the bills covered. Your family will have your loss to mourn but at least they won’t also be mourning the loss of their financial stability.
Health insurance, on the other hand, will protect you financially if cancer, or indeed any other major illness, comes calling for you or any other member of your family. We all know that, unfortunately, current health is no guarantee of future wellbeing. Any number of serious illnesses or freak accidents can change your medical requirements in a heartbeat and it’s reassuring to know that it won’t be you who has to pick up the tab. And I’ve seen how those tabs can get astoundingly big astonishingly quickly.
I have never understood why clients consider home insurance a no brainer yet hesitate over taking out health insurance. Your health is so much more valuable than the contents of a home. Who doesn’t want access to highly trained medical professionals, the most effective treatments and world-class facilities? Without insurance, all those things could well be out of your reach.
In short, life and health insurance prevent unexpected life events from derailing your household finances, protecting your accumulated assets. They are not an unnecessary expense but a crucial part of a well thought-out financial plan.
If you’d like a free, no-obligation review of your financial situation, including your life and health insurance requirements, I’d be happy to help. You can arrange a consultation by contacting me at email@example.com.