Achieving your personal financial goals does not happen without risk. Remember we told to add an additional 10% on to your revenue budget? This is to push yourself to achieve your goals 110%. When pushing your limits, you may have to take some risks and insurance helps you mitigate the fall, if it should come to it.

“Insurance can be defined as a means of protecting one’s financial risk against an anticipated loss that may or may not occur.”

Getting yourself an insurance is always a gamble. You never know if you will need it or not. But as they say “better to have it and not need it, than to need it and not have it.” Keyword here is “need.” Losses can come in the most unexpected forms and times. Sometimes the most solid outlooks may turn completely otherwise. So, it is always advised to have some form of insurance in your personal finance plans.

There are many forms of insurance products offered by insurance companies to meet diverse needs of individuals. From individual health to life to income protection, vehicles, property, businesses, and credit, these are all designed to protect you against different types of risks.

It might look as if paying the insurance premium is an unnecessary expense. Might as well put it in a savings account so you can use it when needed, right? But the dilemma is that you never know how much financial backing you will need when a loss occurs. For an example, you can insure your business for $1 million against theft. Let us assume that there was a theft at your business and goods worth $500K were stolen. On that day you better pray that you have that kind of cash in hand and in savings to cover your loss. Whereas an insurer will always have your back in such situations.

If not for anything else, it is always good to have a health insurance and a life insurance going on for you. Because, after all, health is wealth! The life insurance will pay back the money you’ve invested as premiums upon its maturity, hence it will be like a boost for your retirement as well.