Life insurance before Investment: Why?
People in their mid 20’s start to re-evaluate their financial standing. They start to ask questions like: “Where am I compared to my peers?” and “How do I get to where I want to be?” even “What did I do wrong?” or “What did they do differently?”
Tough questions. But the good news is, they still have time to work on that financial goal.
To develop sustainable wealth, learning is key. Read as much as you can and apply it in your personal finances.
However, in the process of amassing wealth, a vital step is always neglected. That is, to get yourself an insurance plan.
Life insurance Companies
Which life insurance company would you trust?
Why is this important?
It is for the simple reason that life is unpredictable.
Illnesses, accidents, unemployment, bankruptcy, death or retirement – these are all unexpected and to be prepared can greatly smoothen out the financial burden.
The best time to get an insurance plan is when you are young, healthy and able to earn. All these qualities contribute to the plan being more affordable. It is the main idea of being prepared – having everything set up when you still don’t need it.
And while compounding is the 8th wonder of the world (according to Einstein), insurance is probably one of the greatest inventions of man because -- Investments are primarily for capital gain, where money is working to earn more money while an Insurance plan is for capital preservation, ensuring that there is money when earning stops.
Questions, additions, and objections are very much welcome!
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