Having suffered repeatedly at the hands of Chester who is Mrs. Stanton’s dog I finally managed to persuade her that she needed a life insurance policy after visiting her home several times. Now I was a Financial Advisor and I know that we do not have the best of reputation and I admit that there are unscrupulous advisors out there who think about their bonus before they think about the client, this is one of the reasons I left my position at the Royal Bank of Scotland.
Why is life insurance necessary, well life is full of uncertainty and with uncertainty comes risk. However well prepared we are we do not know what is around the corner and what kind of fate awaits us and that is the reason why life insurance is so critical.
If you don’t have life insurance already it may be worth considering, now I am not a salesman anymore and there may be some thinking that I am in it to further my adsense account by choosing a high paying adword, I assure you this is not the case and I am only writing about what I have learnt. So here goes insurance 101 and why you should consider protection.
A life policy guarantees you a sum of money during the term of the policy should you be unfortunate enough to pass away. This policy is guaranteed as long as you make the monthly premiums on the policy. Now the premium is determined by actuaries who work out how long you are likely to live given your lifestyle. This sort of policy is essential if you have dependents that you want to protect financially in the event of death.
The best way in my professional opinion is to create a life policy which has critical illness attached to it, this sort of policy is a bit more expensive but in the long run it is worth it. By adding a critical illness cover you can receive a lump sum payment upon being diagnosed with one of the critical illness that is stated on the policy. Such a policy will help with hospital bills and treatment if you were to be diagnosed with one of the illness.
During my professional career a saw many clients and some of them refused my advice, I once asked a client why he would not take out the policy and his response was that he was fit as a fiddle, I followed up with the question that what if you had a accident which he responded “I am always weary”. Hopefully that client is fit and healthy nevertheless any sane person can come to the conclusion that they cannot control all the variables and there is a chance however small that something may happen to them. It is a small price to pay to protect your family by taking out life insurance and hopefully I have given you a insight into the importance.
As always I know that the Xomba community is great and I would appreciate any comments and rating, I will respond to all the comments and if you have any questions about financial planning please let me know and I will try and point you in the right direction