Importance of Insurance in our financial planning

In this century, while everyone is looking for investment and more income, at the same time, they should have risk awareness. What is risk awareness related to income generation? Yes, when a person plans for his personal finance in the life time, he/she should take the risk into the consideration. What if there is an accident happen at the time when he/she save $50,000 after working 5 years. The accident may causes he/she spend all his 5 years saving in the medical treatment. Only god knows what will happen tomorrow. We need to be insured. Therefore, we need insurance protection. It is to ensure our continued peace of mind and it is our priority.

With Severe Acute Respiratory Syndrome affecting the lives of so many people around the world, it is vital that everyone takes proper health precautions. It is also important that you and your family are financially protected from the adverse effects of the deadly disease. As long as we are insured, we then can concentrate to grow our income or investment plan. For example, you spend 10% of your income for the premium and you save 30% for long term investment. When there is any unlucky incident affect our health, the 30% saving is still continue to grow without any impact. In contrast, if we don’t have any insurance plan, the total of 30 % may need to withdraw out to cover the medical expenses. Can you see the differences? It is not urgent but it is important to think about it. A good financial planning is important to have a protection. No matter how much you grow you finance, at least you need one insurance for financial protection.