Today marks insurance awareness day and financial advisor, Yena Khuboni shares the importance of having insurance.
There’s just too much we don’t talk about, don’t think about, and when something unforeseen comes it hits us in the face and that’s a costly mistake you want to avoid. What tops the list of things we seem to take for granted is our finances and subsequently, our financial freedom.
Today, we’ll focus on the building blocks of true financial freedom: Insurance. Contrary to what most believe insurance is very important for those rainy and adverse seasons we face once in a while.
History of insurance
You might think insurance isn’t older than a couple of hundred years, but we couldn’t be more wrong. It actually has a history stretching back far into the past, with the earliest known versions of it being found in 3000-2000 BC. Insurance is even found inscribed on the Code of Hammurabi, the first written laws and it even predated what was considered the official foundation of law.
We, our families, properties and other valuable assets are always exposed to different kinds of risks, and risks involve losses. Insurance serves as compensation, a tool to reduce the cost of loss or cushion to minimise the effects of loss caused by a variety of risks. Some of the key role and importance of insurance are as follows:
- Compensation for loss of primary income
- Tax benefits/savings
- Peace of mind should adverse unforeseen events occur
- Financial compensation for personal loss
- Reduction in business risk and losses
- Increased retention of quality ad skilled employees
- Replacement of lost income due to disability/dread disease
These are just tips of the iceberg!
Insurance Awareness Day reminds you that taking the time to talk to a financial wellness coach and having your financial needs analysed (in order to determine type and cost of insurance you need) can save you and your family at the worst of times. The best way to celebrate this day is to contact a financial advisor and/or wealth strategist to ensure your valuable goods are insured.
Words: Yena Khuboni. Additonal information: www.daysoftheyear.com