– Nobody wants to think about the possibility of disasters that happen to their life; however, the disaster can happen to anyone. Weather-related natural disasters, fires and earthquakes and can strike at any time. This is the main reason why life insurance and home insurance assumes vital importance, this coverage is paramount for every individual and their family to insure their life for the financial security and proceed to address other aspects of financial planning. There is no the best way to fully prepare for natural disaster, even with doing your best efforts, But commonly you can’t plan perfectly for the worst disaster, this is why you need life or home insurance policies, this coverage will help you if natural disaster happen to your life and your family.
Insurance is an important factors of financial planning, most of the different kinds of life or home insurance policies help protect you and your family in some different ways against the cost of accidents, disability, and even death. Financial planning is statist process that involves with an individual financial goals and long-term objectives of achieving those long-term goals. Insurance and financial planning includes elements of protection, planning for contingencies and emergencies for specific milestones in life. on other hand, insurance and financial planning should be reviewed to be in sync with some difference in their different life stages that are specific to a certain stage in their life.
Insurance and financial planning could changing circumstances in individual’s life like purchase of new house and even child’s education mandate that the financial plan evolves to meet with some objectives within the given timeline to make some plans in insurance and financial. At recent years, most of the people has an array of options to choose from where they starts insurance and financial planning. It is observed that most of the people tend to focus on the seeking a protection for their life and their family
The relevance of life insurance, home insurance and financial planning as a long-term protection savings tool also based from financial instrument planning that helps anyone meets with their need. Insurance and financial planning could provides the peace of mind. Every individual who needs life insurance need make an financial planning to assess their life insurance needs depending on many of essential factors. Life insurance coverage requirements need to be scientifically assessed depending on the financial planning at their life stage and life insurance suit they need.
However, the basic premium of life insurance has always gives some certain protection, that also provide the flexibility of long-term savings and wealth creation tool. Insurance and financial planning allow the individual to systematically save over the long run and generate returns money to their life, besides, insurance and fnancial planning provides some coverage for child’s education, purchase new house or marriage. In doing so, you should understand that primary purpose of insurance and financial planning is protection followed by real returns and not the other way round.