All financial plans are a great way to plan for your future, but unless you are including a risk management component to your plan, you are leaving yourself exposed to potential risks that may render your plan useless.
Let’s be honest, how often does life go as planned?
Whether you are still working and saving for retirement or you already retired and withdrawing income from your retirement savings, one of the biggest risks to your financial plan is a life-threatening illness. Your retirement savings are intended to be used for exactly that… retirement!
If you get sick, will you need to use your retirement savings to get better? And if you do, what will the rest of your retirement look like? Will you have to reduce your desired retirement lifestyle?
Adding a Critical Illness insurance policy to your financial plan can help protect the very financial plan that it is being added to. In fact, you should consider Critical Illness insurance as Portfolio Insurance.
As an example, think about car insurance. You can spend $50,000 on a new car and then spend $2,000 (or 4% of the value of the asset) to insure it. It should be no different with a Critical Illness policy. If you have a portfolio worth $100,000, why not spend 2% of the portfolio value on an insurance policy that can protect the rest of your portfolio. Planning for the unforeseen risks will allow you to make your financial plan complete and protected from all of life’s uncertainties.
