Investment and life insurance is not often mentioned in the same sentence but, they should be. If we change our perception of what we typically see as an investment and think more about the long term impact of unforeseen events such as death, disability and severe illness, it becomes a lot easier to see why you or your loved-ones would not want to be financially dependent at such a stage and why investing money now to possibly prevent this in future, makes a whole lot of sense.
If you are on the fence, consider this; A well-known advisor was often confronted with a statement from his prospective client that he or she does not believe in life insurance and he always jokingly replied that “you don’t have to believe in life insurance, it is not a religion… It is simply a form of risk management. You are transferring the risk from yourself (who cannot afford it) to a life insurance company (who can). If you are one of a hundred people insured and you become permanently disabled, you probably won’t be able to sustain your level of income by yourself but, because ninety-nine other people are still paying their premiums, the life insurer can afford to do that.”
Nick Murray, a financial services professional and respected writer and speaker for more than 50 years now, challenges us to this change in thinking. Consider that a good financial advisor could be one of the most important people in your life. Because of his advice and actions (which will include recommendations on investing in life insurance), families and businesses can continue after these very unfortunate events. It is his or her job to ensure that the money outlives the people because you have to insure against what can go wrong in order to gain the luxury of investing in what goes right.
Life insurance is often referred to as a “grudge payment,” but it should not be. I consider it a privilege and honour to be able to do this for my family and those who are dependent on me. And as I have experienced over the course of my 25 years in the financial services industry, there are a lot of people who share this way of thinking.
If you love the people close to you or just want to review your existing portfolio to ensure that it is optimally structured, make an appointment with a reputable financial advisor today and obtain that peace of mind which could be so valuable. We are truly fortunate in this country with an advanced and very well-developed financial services industry. Investing in life insurance can help not only those around you but, if used wisely, also make a significant contribution to the wellbeing of your own personal financial planning.
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