We encounter numerous different situations in life. Each situation calls for a different solution. We cannot predict which situation we would come across, but we can be prepared for the various possibilities by having a well-planned solution.
Among the various situations we’d encounter in life, the general idea is to classify them into two different “paths”: The Rough Path vs The Smooth Path.
We all know how things could go wrong in life and when the going gets tough, the tough get going. Nobody wants to go down a rough patch but we should always be prepared for one. And fortunately, this is exactly what people have in mind when it comes to life protection.
Let’s take you through a journey down the “Rough” path, during which “something happens” in life, and find out the various problems and its respective solutions:
Minor Illness
First up, something most of us would encounter every now and then, a minor illness or injury that calls for medical consultation or hospitalization.
The Solution
A medical or personal accident policy which offers protection by covering the policy holder’s treatment and hospitalization expenses.
Major Illness
When it comes to major illnesses such as cancer or heart attack, the treatment process is often a long and recurring one. One could also face the possibility of becoming seriously ill or disabled.
The Solution
A critical illness policy offering a lump-sum if the policy holder is diagnosed with one of the 36 critical illnesses.
The lump-sum payment is not restricted to medical treatment expenses. Instead the policy holder could also use it to ease his/her family’s financial situation.
Disability
Disability, unfortunately, often results in a loss of ability to work as well. When this happens to the breadwinner of the family, the loss of income would turn out to be a significant financial burden for the family.
The Solution
Other than a medical or critical illness policy to cover for the medical treatment expenses, a proper financial plan could go a long way in easing the financial burden in the household.
For example, an education plan for the children and a retirement plan for the spouse would offer protection in the case of a loss of income.
Debt
One situation nobody wants to find themselves in but would inevitably face, especially in the case of major illnesses or disability. With the loss of income comes the inability to settle a debt.
The Solution
A restructuring of loans and a proper financial plan beforehand would prevent mounting debts in the event of a loss of income.
Death
Death inevitably brings a significant and devastating blow to a family, both emotionally and financially. However, one wouldn’t know when death would occur. Hence it is important to plan ahead in order to soften the blow.
The Solution
A financial plan (medical, saving, education, retirement plans etc) to cover for the family’s living expenses when the breadwinner passes away, as well as writing a will so all assets are well and properly distributed to the heirs.
Now that we’ve gone through the “Rough” path, a path nobody would prefer to endure, let’s find out what the “Smooth” path has in store for us.
This is the path where things occur as they were “supposed” to, as one would suppose how life is “supposed” to be if nothing bad or drastic occurs. Nevertheless, because this is how life is “supposed” to be, where “nothing happens”, and people tend to neglect the importance of life planning when things are smooth-sailing.
Let’s have a look at what you can and should do when things are smooth-sailing:
Retirement
We’d all eventually retire. Hence, it’s never too early to plan for your retirement. Not only do we have to deal with living expenses post-retirement, but we have what we call bulk purchases like buying a new house to downsize our home, as well as maintaining our lifestyles. All of which involves considerable costs. The quality of life after retirement is determined by how well you’ve planned for it prior.
The Solution
A proper retirement plan would ensure a good retirement life. One would reap the benefits of allocating their savings and funds correctly post-retirement.
Education
We’d all wish to have a family and children, and providing our children with the best education possible is a huge responsibility. As the cost of education continues to soar, planning for your child’s education is a vital part of any financial plans.
The Solution
An education plan that takes into account your financial level, as well as the type of education you envision your child to have.
By looking into the current age of your child and how many years you have before your child enter his/her higher education, a proper plan could be worked out to ensure you have enough when the time comes.
Saving
The importance of savings is common knowledge. However, whether or not we are saving our money in the right places is what makes a difference.
The Solution
A saving plan that allocates the right amount of money to the right places.
It’s important to get the amount right as we’d want to manage between our daily expenses and savings.
Investment
Investment is where one allocates money in an asset or item with the expectation of a profit or return in the future. Via investments, one is hedging for inflation, in which one provides protection against a decrease in value of a currency. Doing the right investments would result in financial gains. The difficult part though, is getting your investments right.
The Solution
Everybody has their own investment portfolios, a financial consultant who knows the market well would formulate a plan to ensure you have the enough capital or funds and to allocate them at the right investments according to your portfolio.
Before making an investment, it is also important to analyze whether the overall weighted rate of return of that investment meets your expected rate of return.
All of the above points to the importance of life planning, being prepared for the various situations and having the right solutions is vital in order to offer protection and security to your life as well as your family’s.
If you’re wondering how, look no further than Great Vision to assist you as we have the right personnel to provide you with the best life-planning solutions.