Forget about insurance
The other day I was having a conversation with my insurance agent and she told me that her sales has been decreasing. This not only apply to new customers but also her existing ones.
New customers are saying that insurance is not a priority right now in the wake of the economy crisis we are facing and so, buying an insurance plan is pushed to a later date. Meanwhile, her existing customers are either behind in their premiums or they are lowering their premiums, hence lowering their sum assured too. Not only that, lowering premiums will also impact on the value of the insurance policy when it matures.
This is actually a worrying subject. Insurance is definitely something that everyone needs as it will provide us with protection in the event something unfortunate happens – not only to ourselves but also to our loved ones. Besides this, it also helps in diversifying our asset portfolio. Depending on the type of insurance purchased, it will also help us in growing our wealth.
This is especially true for investment-linked policies. It not only helps in the protection bit, it also has the investment portion which has the potential to increase your wealth. The investment portion is invested in different types of equities, money market instruments or bonds. This is good for those of us who lack the investment knowledge or the time to monitor markets and take an active role in investing ourselves.
Seeing the advantages of an insurance policy, I personally do not think that postponing nor lowering our premiums should be done. We need every means to protect our wealth and ourselves from any economy situation, especially one that spells inflation in the future.
What do you think? Is postponing insurance plan a wise decision? Should we lower our premiums to ease our financial commitments?
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