Insurance - when do you need it?

Buck 1 By Buck 1, 17th Sep 2012 | Follow this author | RSS Feed | Short URL
Posted in Wikinut>Money>Insurance

Your insurance needs depend on your age, any dependents you might have, asset protection, savings for education and retirement, income protection, health insurance.

Age - how old are you?

If you have just started work as a teenager get the savings habit started straight away with a plan that provides for major purchases such as a car or house, but most importantly retirement.
Put away at least 10% of your income as you earn it (weekly, fortnightly, or monthly) and increase the savings amount and percentage as your income rate increases.

Insurance to protect your dependents

Does your partner rely on you for living expenses?
Do you have children to support?
Then you need life insurance to provide a lump sum for them if you die or become permanently disabled.

Asset Protection

As you progress through life you will probably accumulate assets such as a vehicle, house, and house contents - clothes, furniture, towels, sheets, blankets, cups, plates, knives and forks, computer, stereo, TV, fridge, microwave, vacuum cleaner etc.
You will need to proctect these assets against fire, burglary, and major damage, with vehicle, house, and contents insurance.

Education and Retirement Savings

If any children you have are not to be saddled with a loan while attending university you will need to increase your savings from when they are born to cover their tertiary education.
And if you haven't already started it a retirement savings plan should be in place in order to maintain the same standard of living that you are presently enjoying while working.

Income Protection and Health Insurance

If you are now middle-aged - say 40 plus - and earning an above average income you will need to maintain that income in the advent of a having a serious accident or ongoing illness that prevents you from working.
And as you reach a mature age you may need to have major surgery for arms, legs or internal organs. Health insurance should enable you to have the surgery done promptly.


So when do you need insurance?
You will need insurance throughout your life as your needs change.
Start a savings plan when you start work.
Get life insurance to protect dependents.
House and contents insurance to protect your assets.
Education and retirement plans for the future of your children and your old age.
Income protection to keep the money coming in and health insurance for prompt surgery.

But first of all Approach a competant and qualified insurance agent or insurance broker for advice and the setting up of your insurance plans.

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author avatar Sivaramakrishnan A
2nd Dec 2014 (#)

Good points and and tips,thank you. Life insurance shows our concern for our dependents - siva

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