Just like a house needs a strong foundation to withstand the elements, you also need to have a solid foundation when it comes to your finances.
Creating a stable financial foundation starts with knowing that you have the basics covered.
Most people understand the need for having a budget for the present and a financial plan for the future. It is normal for people to have some form of savings plan in place for future needs such as their children’s education, retirement, or providing for their family’s security. However, a lot of people miss out on a very important aspect of their finances – insurance.
Insurance is important because having worked hard to build a solid financial footing for you and your family, it needs to be protected.
Accidents and disasters can and do happen and if you aren’t adequately insured it could leave your family with disastrous consequences.
Some insurance policies are more important than others, so make sure you are paying for insurance that will benefit you and your family the most. There is a fine line between having enough relevant insurance and having too much inappropriate insurance.
The most basic insurance needs should cover the following:
- Health insurance: one of the most important types of insurance. Your good health is what allows you to work and earn money so you can enjoy your life
- Life insurance: this is especially important if you are married or have children. Your life is valuable and enables you to work and provide an income for your family. When you are gone, that income will go with you which could put your spouse and children in financial trouble
- To pay for the expensive unexpected medical expenses which can be costly
- Allows the person who is insured to concentrate on the medical treatment and not have to worry about how to pay for it
- To relieve the family from the temporary financial difficulty of the extra costs associated with a serious illness
- Provides comfort – allows loved ones to deal with their grief without worrying about the financial burden
- Generates income – helps replace lost income in the time after a bereavement so the family can continue to pay for life’s necessities
- Offers flexibility – gives the surviving spouse time to take off from work should they need to consider a change in jobs to fit into their new lifestyle
- Funds the future – offers a way to ensure longer term goals like college education or retirement plans can still be achieved
- Leaves a legacy – gives parents the chance to leave future generations with the legacy of long term financial security
Insurance is an important aspect of financial planning, which should not be overlooked.
The benefits of having life and health insurance will leave you and your loved ones protected in the future when faced with situations that can unexpectedly occur.
Therefore, to ensure you are sufficiently covered, speak to your financial adviser who will help you find the correct cover that suits you and your lifestyle
Steve Weston – CEO FPI
Message from the CEO – October 2019
Planning for the future
At Friends Provident International (FPI), our business is all about planning for the future. Our customers might be planning for their family’s future, be that for school, university, getting onto the property ladder or for their own retirement.