Planning for life — insurance

Business

Planning for life — insurance

BY DAVID ROSE
Observer business writer

Sunday, January 17, 2021

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If you were to get sick tomorrow and go through life-saving surgery: Who would show up for you? Would your family be alright financially? Would you have felt accomplished with your life up to that point? Would your will be ready? Would you have left life with any regrets on what could have been?

Although death and anything related to the risk of life are massive fears, we all harbour privately, it's not something that should be ignored since one event can change how we experience that future.

Thus, today's article will be examining the reality of life and the need to ensure that future planning is a consideration which isn't neglected until it is too late.

INSURANCE

Insurance in its simplest form is a compensation mechanism for the user of the product in the situation that an event does occur with that user paying a fee (premium) to be 'insured' for that possibility.

Basic examples of insurance we are required to pay include car insurance and home insurance which tend to either be legislated by law or mandated by a financial institution if that asset was financed through them. If your car is damaged or you end up in an accident for something that wasn't your fault to result in culpability, the insurance firm would pay for that 'claim' to either get the vehicle repaired or give a general payout if it can no longer be used (written off).

With respect to life planning, one can get life insurance which depending on the type of policy and plan would pay you or your estate/beneficiaries the value of the policy in the event where something drastic occurs in your life.

If you were to pass away tomorrow, could the life insurance product settle outstanding debts and afford you a decent service for your loved ones to mourn.

Despite seeming like a far-fetched concept due to nothing happening to us in our current state, one should remember that the worst time to get insurance is when you need it.

If you have a family of four, how long could they manage with you not being around? When getting a life insurance product, consider a life policy and a critical illness policy which will cover the event of death or a specified illness such as cancer or a heart attack.

If you're not able to afford a general life insurance policy depending on the factors in place, you could always consider a family indemnity plan which would allow you to insure the user and some family members so that if someone was to pass away, the funeral expenses could be paid out of that policy so that there is no undue burden on your living family members.

One of the easiest means to bankrupt anyone or family is a health-related illness which is known before or occurs later in life.

More than 60 per cent of bankruptcies in the USA and 70 per cent of GoFundMe campaigns are related to medical costs for a person suffering from some situation.

Even if health costs are relatively lower in Jamaica than the USA, they are by no means cheap as evidenced by the difficulties most of the population face in sourcing health care. According to statistics provided through the largest health insurance providers in Jamaica, less than 25 per cent (1 in every 4 Jamaicans) has health insurance. All this simply means is that most persons pay large out of pocket costs for prescriptions, procedures and doctor visits.

If you've truly woken up to the truth of life, it would be wise for one to speak with a licensed insurance advisor on what options are available to you and your family members for protection against these unforeseen events. If an event occurs within 15 years as mentioned earlier, the amount paid on the policy could be a fraction of the total costs that would have had to been paid upfront before a service could be rendered to you.

Protect your future by taking action today.


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