Why Would I Need Insurance?21 Jan 2021
You work hard to build your career and your wealth, so you want to be sure that your efforts don’t go to waste.
But life does have a way of throwing us curveballs. Accidents and disasters can and do happen when we least expect it, and if you are not prepared, it can leave you vulnerable in many aspects.
This is where insurance comes in. It takes on many forms but they all have a primary function - as a buffer against unexpected financial costs.
However, unlike a car, house or the latest clothes and gadgets, insurance is an intangible product. When you purchase an insurance policy, you are buying a promise. And because it is something that can’t be seen or touched, people sometimes forget why insurance is crucial for financial planning.
The truth is, insurance is important in our everyday lives, and there is great value in having an insurance policy. Here are the main reasons:
1. To Protect Yourself
Your life and your ability to make a living is important. This makes you your greatest asset, so it makes perfect sense to protect yourself.
Insurance is all about ensuring that your finances stay secure in the face of unexpected events. Having this financial safety net allows you to focus on the things that matter, like pursuing your dreams.
2. To protect your family
Insurance becomes even more important once you start a family, because your loved ones are now financially dependent on you. This means that they too must be protected from financial hardships in case of an unfortunate incident.
3. To reduce the risk of loss
Insurance is a form of protection against financial loss. It is a way of managing risks, where you transfer the cost of a potential loss to an insurance company. In return, the insurance company charges you a fee called a premium, which you pay on a scheduled basis e.g. monthly or yearly.
Source: Mad Men
4. To ensure peace of mind
The right insurance policy can provide financial stability to you and your family, which in turn provides peace of mind and reduces stress during difficult times.
You can rest easy, knowing that if something happens to you, your loved ones can still move forward, as they won’t have to struggle with expenses such as your children’s education, credit card debts, clearing your mortgage, and providing for your aged parents.
As you can see, having an insurance policy protects you against the potential losses in life. It’s never too late to sign up for one, if you haven’t already.
Gibraltar BSN has a wide range of insurance products to suit all kinds of budgets and needs. We have life insurance which provides for your loved ones in case something happens to you, medical insurance which ensures you have access to healthcare when you need it, and also savings insurance which provides you protection and savings in one policy. Check out our offerings here.