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Why is insurance a necessity? - Sky Financial Planning

Insurance is not just for the rich and wealthy. Regardless of the age and income level, everyone requires insurance. Insurance serves to transfer the financial risk of “unexpected” medical conditions or loss of life to the insurer.

Why is it necessary? Far too many people lack sufficient insurance coverage, as most usually feel that the money would be better spent elsewhere. Yes, savings and investments are important. Unfortunately, what many fail to realise is that it only takes one major incident happening to you or your loved ones to completely wipe out your hard earned savings/investments.

Are you adequately covered? As a rule of the thumb, it will be ideal to be insured at least 11 times of annual income. For example, for someone earning $50,000 a year, a recommended sum assured will be at least $550,000.

If you are currently paying for car insurance, home insurance, think about it, why is life insurance less of a priority? Is your car/house worth more than your life?

Speak to us, and we hope to plan your future with you.

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