We save up our money to make sure we live comfortably during retirement, have an emergency fund, and achieve our life goals. But what did we do to protect our savings? Did you know that your savings need protection??
Today we going to look into these questions. “Does our savings need protection?” “How to protect my savings?”
Well guys, Yes. Your savings need to be protected. We always say “ I need to save money. And a portion of it will be my emergency funds in case of emergency. The balance will go into my retirement plan and saving to buy the things I want in life. Like a house, car, or getting married.” Let me ask you, how much are your emergency funds currently? How long it will last? If the funds are finished, will you take out money from other portions of savings?
Definitely will. No doubt. Or you can go borrow money from friends and family. But till when? And how are you going to pay back?
Looking into the questions is all about priorities when we do our financial planning. And sometimes perhaps we didn’t set our priority right. Maybe many of us will still be putting “Savings” as the top priority in our financial planning strategy.
But from my point of view, before we started savings, we should put “PROTECTION” first. For protection, we are looking into Life, Health, Disability, and Critical illness insurance. A solid and sufficient insurance coverage will be the primary financial safety net to offset most of the costs such as hospital bills, long term treatment cost, loss of incomes due to disability or chronic disease and even cover our debts during unfortunate events. This will ensure our family is free from financial burden during the bad days.
With sufficient coverage and protection, we can be sure that our life savings will be secure and we can achieve our life goals and comfortable retirement. In case we are healthy throughout our lifetime and did not claim any from our insurance, we can enjoy the maturity benefits or maturity cash values from our insurance plan as well.
Maybe to some of us, setting priorities in financial planning can be a challenging process. And we might not have a clear picture or idea on how and where to start to create a solid financial positions at our current situation and as well in the future. Well, you can talk to your financial advisor or insurance agent to help you with it.