It\’s not uncommon to hear from clients who are confident in their investment abilities and question the need for insurance. They might say, \”I\’m good at investment, I don\’t need insurance.\”
Well, it\’s fantastic to hear that they\’re skilled in investment. I\’m sure their money will grow when they are the one managing it.
However, let\’s consider this – investment and insurance serve different purposes in financial planning. While investment is about growing your wealth, insurance is about protecting it. It\’s like having a strong offense (investment) and a solid defense (insurance) in a game. Both are crucial for winning.
Moreover, insurance can play a strategic role in structuring your financial portfolio.
Here\’s how:
Liquidity Fund: Insurance can provide a ready source of funds for short-term needs or emergencies, ensuring that you don\’t need to liquidate your investments at an unfavorable time.
Growth Fund: While your investments focus on wealth accumulation, insurance can serve as a safety net, protecting your growth fund from unforeseen circumstances.
Play Fund: Insurance can be used to set up a fund for your children to experiment with. You\’re skilled at growing your wealth, but your children might need a safe platform to learn and make mistakes.
Long Term Fund: Insurance can provide a stable base for long-term financial goals, such as retirement or legacy planning.
Imagine a future where your wealth not only grows but is also well-protected and strategically distributed for various needs. so why not let\’s work together to create all these different funds for yourself?