EXPERTISEFINANCIAL SUCCESS DEPENDS ON 2 FACTORS
WHAT HAPPENS IF THINGS GO WRONGI need to protect my income
WHAT HAPPENS IF ALL GOES WELLI need to save and invest
A BETTER APPROACH TO LIFE & FUTURE
I BELIEVE IN THE WORDS OF BEN FELDMAN
“WE DON’T SELL LIFE INSURANCE.
WE SELL WHAT LIFE INSURANCE CAN DO”.
It’s a fact: if you have a family you already know you need life insurance. If you have a home, you know you need mortgage insurance. And if you have a business, you probably know you need key man insurance.
Life Insurance is mainly referred to as a contract between “A” an insurance policyholder and “B” an insurer. This contract promises to pay a designated sum of money from “B” to “A” in case of a serious illness, a disability, or even worse. But do we need to be covered by Life Insurance? Or is it just a financial strategy to hold our hard-earned money.
The best way to understand the need for life insurance, as Myles Munroe puts it.
“The value of life is not in its duration, but its donation. You are not important because of how long you live; you are important because of how effective you live.”
We, humans, are fragile creatures in an ever-evolving world, thus financial security is essential. If you were to suffer a serious illness or worse, your concern about the ability to cope financially would be an extra worry, that having a policy can take away. Saying “No” to life insurance is easy but do we stop and consider what we are saying no to? Saying no to life insurance means you want your family to struggle, not have enough money for the bills that keep on coming even after you’re gone and having no money; for when you need it the most. It is always better to have it for a lifetime and not need it rather than need it for a day and not have it.
Happiness can’t be bought but Peace of Mind can. Peace of Mind is the financial Security one feels when they aren’t worried and their income is enough to cover their expenses. It also means that they have enough money saved to cover emergencies and their future financial goals and commitments.
Creating Legacy with Life Insurance. Life Insurance is not for you it is from you. A gift, to your family that keeps on going even when you are no longer there. You buy it for the people you love. It is designed to preserve and create wealth at the toughest of times.
Insurance is better to be five years too early than being five minutes too late. Life is full of risks and uncertainties. The future cannot be predicted, but we sure can plan for it. Insurance benefits cannot replace a loved one. But it can help your dependents remain independent in your absence. With life insurance, you can cover your lifestyle and standard of living. Your home which is potentially your biggest asset can be covered by having a policy in place. Putting the right protection can help ensure peace of mind at those stressful times. It allows you to save for long term goals such as your children’s school fees, a wedding, or your retirement. Protection could help reduce the risk of not reaching these goals in case of a serious illness, disability, or premature death. So, if a child, a spouse, or a parent depends on you and your income you need life insurance.
LIFE INSURANCE IS THE CHEAPEST AND SAFEST MODE OF MAKING A CERTAIN PROVISION FOR ONE’S FAMILY.” BENJAMIN FRANKLIN.
CRITICAL ILLNESS INSURANCE
ALSO KNOWN AS “LIVING INSURANCE”
We often confuse Critical Illness Insurance with Health Insurance. While both may seem to be similar, they are indeed entirely different. Health Insurance covers your medical bills while also aiding in operations and procedures associated with your illness. Critical illness insurance pays you a lump sum amount to sustain your life during recovery and beyond. This money can be used any way you want. Its purpose is to provide you with funds to use in case of loss of income or work.
While it may seem that having health insurance is enough. But in reality, when one gets critically ill the thought of being able to work again is haunting one.
In most patients, that is the very reason for anxiety and depression to kick in. Every now and then we pride ourselves on the fact that we are in the prime of our life and health. There isn’t any family history of a Critical Illness and why should I buy something which I may never need. Critical illness insurance UAE not only helps you recover and overcome a “Critical Illness” it can also help you in case you suffer an accident or god-forbid are left with a disability. These factors in turn not only affect one’s ability to recover but also leaves them in a situation where uncertainty and not knowing befalls. Now the question, whether one can afford a critical illness?
Health, life, group, family insurance may seem to have a significance over one another from person to person. But having one in place and backing it up with another is never a bad idea. Especially in the case of critical illness insurance UAE. It is relatively low-cost insurance and compliments your other insurances fully. Thus, enabling you to focus on your recovery, health, and lifestyle.
Every year, 15 million people worldwide suffer a stroke. Nearly six million people die and another five million are left permanently disabled. Stroke has become the second largest cause of disability, succeeded by dementia. The disability may include loss of vision and/or speech, and paralysis and confusion. WHO, 2016.
According to another WHO report in 2017, Critical illnesses are on the rise. This is a concerning trend that needs to be addressed. Cardio Vascular Disease (CVD’s) are the No. 1 cause of deaths globally. More people die annually from CVD’s than from any other cause.
The main reason behind Vascular Diseases being diabetes and obesity. The leading cause of death globally, among men 56% is due to heart attack and stroke and 81% due to cancer in women.
The critical illness plan acts as a replacement while you are out of work at home recovering from an illness. Which allows you to focus on the recovery, and not worrying about bills or payments. Since it is offered as a lump sum it can be used for a ton of expenses other than your health and recovery. Critical illness insurance gives you the liberty to get back to work whenever you seem fit, instead of being forced to join back even before a full recovery. While nothing can cover what one may lose due to an illness or an accident, but Critical Illness insurance gives you and your loved ones the ability to be strong and stable financially.
SAVE FOR YOUR CHILDREN’S FUTURE
TO BE A GRADUATE IS EXPENSIVE,
NOT BEING ONE IS EVEN MORE EXPENSIVE
A GRADUATE EARNS 3-4 TIMES MORE THAN A NON-GRADUATE.
Every parent knows the value of a good education. It’s the best gift to your children and the greatest investment for their future.
When children are young, university or even high school seems to be a lifetime away, but they will come around quickly, sooner than you can think. Do understand that whatever education path they choose to follow, it’s unlikely to be cheap, unless they are able to get through on scholarship. Let’s face it, not everyone has that luck. Even a standard education comes at a price today. And if your boy or girl turns out to have a unique talent that needs more specialized education, the costs can be very high indeed. Planning early could put you in a much better financial position when your children are at the college door.
It’s always wise to have a part of your saving in $$ so that you are prepared no matter where your children opt to study. When it comes to NRI’s, a conversion from INR to USD today can wipe away years of ROI earned back home, think what could happen in 8, 10 or 13 years. It’s good to have savings back home, but we have seen that most expat children prefer to study in UK, Europe, US or Australia. In such an event having your savings in dollars will give you that additional flexibility to receive the amount in any country your children choose to study.
The high cost of living continues to erode your saving power as each day goes by, so the sooner you plan, the more you can save. It’s simply a discipline.
Points to be noted while planning for your children’s University education.
- Don’t look to short term while planning for education. Fees will be vastly different in 8 – 10 years’ time when you child reaches college. Inflation must be accounted.
- Don’t forget the cost of living, they can virtually double the yearly cost of fees.
- Don’t make assumptions about the sort of education path your children will choose. Be prepared for every eventuality, any country or currency.
DID YOU KNOW?
- Proof of finance for the tuition fees and living expenses for the entire course may be required for International student applications. Regulations are getting stricter every day.
- If saving in a weaker currency, any profit accumulated over years may be lost out on conversion, while repatriating money from your home country. Saving in a hard currency helps.
START SAVING TODAY
It’s not just the ‘Super Rich’ who can educate their children at premier universities,
Plan early and it is affordable. No matter how small, start now and build up as
your situation changes.
BUT, HAVE YOU DONE YOUR HOMEWORK ON THE COST OF EDUCATION?
HERE ARE SOME FEE-FIGURES FOR 4 YEARS OF COLLEGE.
USA – $91,832 UK – £ 48,000 UAE – AED 192,308
AND HERE’S HOW MUCH YOU NEED TO SAVE EVERY MONTH TO ACHIEVE THE TARGETED FEES @5% INFLATION/YEAR – FOR EACH CHILD.
10 YEARS TO COLLEGE AED 3,953 AED 2,627 AED 2,323
8 YEARS TO COLLEGE AED 4,925 AED 3,280 AED 2,902
5 YEARS TO COLLEGE AED 7,021 AED 4,623 AED 4,092
*ASSUMING THE SAVING GROWS AT NET 6% PER ANNUM
WHAT DO YOU CALL AND AGED PERSON WITH MONEY – A GENTLEMAN
WITHOUT MONEY –HES JUST AN OLD MAN.
Retirement can be defined in many ways.
Stop regular working, extended holiday, life of financial freedom etc etc.
This is not about how to retire, instead “who all to retire”.
As an insurance advisor I am privileged to assist many of my clients with their retirement planning, and each one is a new learning experience. Everyone has their own amazing concepts and ideas. Some simple, some not so. Common denominator is – money. We all need that to retire. There is one thing that’s overlooked most times – Is the retirement just for you (husband) or does it include your wife too. Of course, the answer always is that it is for both. That’s very nice, but does that retirement planning you have, include your wife’s retirement too.
To retire your partner means giving her the same freedom you have. Freedom from taking care of the kids, regular household chores, cooking, cleaning, just about anything she does now.
Today you are working hard to give your family the best life, good education for your children, later college and only once done with all those commitments and responsibilities can you decide to retire. Remember – all this while your partner was also busy – taking care of the children, attending PTA meetings, coordinating with school, cooking, household chores, basically converting your “house into a home”. I am not even talking about the case where the homemaker is also working. There the responsibilities increase further. You might have a maid today to support, but a mother or wife will still be involved.
So, when all that’s done, the children leave for their universities and you are ready to retire, don’t you think she deserves one too. A well-earned retirement from the (mostly) unpaid lifelong career, where she can continue to be by your side, in every sense. On a lighter more practical note, some women may go nuts not having anything to do.
Solution is simpler than you think – Just include that small cost of a maid/cook/cleaner to your monthly pension plan. The additional investment will be minimal but trust me it makes life lot easier for your partner and yes you too.
Won’t that be the real retirement.
How about telling that to your wife today & you will see