Your attitude to life is what dictates your attitude to risk. Unfortunately most people don’t think of covering financial risk unless it is too late or they end up with policies with no idea why they purchased that cover in first place.
If the above question has been bothering you, please read my story below.
I came across a young architect in their mid-30’s last week at a social gathering and our conversation veered around what we both did for a living. They remarked “so you are an Insurance adviser. Well I have Life Insurance of $50,000 and looking for health insurance, can you quote?”
I replied: “Of course I can quote but how about setting a time aside to discuss why you think you need Health insurance and Life insurance.”
He was surprised that I was asking for a time to discuss insurance and not just send him a quote and get it done. I saw his quizzical look and assured him it is great he is thinking of insurance but probably might not need any insurance after we have discussed this over a cup of coffee.
We did catch up next day for coffee and I found out he was a single man with dependent parents overseas in Hong Kong and among so many other priorities his top three goals were:
- To keep sending $1,000 NZD to his parents every month to Hong Kong for rest of their life
- Buy a house in near future for his parents in Hong Kong, and
- Travel the world for a year when he had saved enough by age 45
How would life insurance or health insurance help him achieve his goals I questioned him?
Life Cover would payout on his Death to his estate but there was the question of how the money is going to reach his parents in Hong Kong. Even if it reached his parents in Hong Kong I pointed out $50,000 will last for 50 months or probably even less in future?
Health Insurance will get him an elective surgery done quickly beating the waiting list under public health system however what if his injury or illness incapacited him from returning to his work in full time capacity? How long will his employer retain him?
He came to realise there was more to insurance than just Life and Health.
Insurance products are only financial solutions to your goals and aspirations and one cannot afford a mismatch when life throws a health curve-ball.
For example a good income protection plan can assist this person to still meet his goals and objectives with proper lump sum payouts in the event off trauma or permanent disability instead of just relying on life cover or health cover.
So what are your goals and aspiration?
Let’s discuss over a cup of coffee?