Who Needs Insurance?
Everyone needs insurance. The real question is, what type of insurance do you need?
Your life savings can be wiped out in a few days, and no one is ever ready for that. For example, maternity expenses related to premature delivery can be heavy-laden without health insurance as it may cost you about AED1 million and can deplete your entire savings.
Do single people need insurance? Being single with limited responsibilities doesn’t mean there is no risk. There is no definition that defines the first insurance coverage for individuals. However, you can determine your first financial risk. That is how individuals should look at insurance. Think of it this way: you graduated, started your career, no obligations yet, earned your first income, and after which, you start increasing your liabilities when buying a car and renting an apartment. Your primary insurance needs, in such case, would be motor insurance, fire insurance, and so forth.
Does a spouse need insurance? A spouse’s responsibility is to support the family. It is not only the liability that defines the need of the spouse. Instead, it is the responsibilities and liabilities combined that determine the need, such as mortgages, family security, future obligations, and even protecting the current income. One must identify those responsibilities and liabilities, and then prioritise what is more important to start covering and what comes next.
How can an entrepreneur have insurance? Starting a company is never easy. It is a long journey filled with challenges, which is part of the learning process, but these lessons are detrimental to the survival of your business. An example is when there’s an error of omission from your books of accounting. Or if you have to vacate your premises due to fire, you risk losing revenues and would need protection against loss of income.
Do professional athletes need insurance? At a glance, you would think they don’t need insurance due to their high remuneration. But let’s take a look at this scenario. A professional footballer’s career life span is about 10 years, and in those 10 years, they earn more than enough money they can use in their lifetime. They accumulate expensive assets ranging from high valued cars, mansions, and not forgetting a lavish lifestyle, which is costly to maintain. Suppose they get injured four years into their careers – could you imagine the financial loss they would have suffered? Therefore, the same principle applies to people whose bodies are a vital source of their income, such as celebrities, athletes, and all kinds of performers, to protect their essential assets.
What does a high-net-worth individual need from insurance? They are always on the lookout for high yielding investment opportunities, and jumbo insurance is a good option. It comes with life-long life insurance cover, and a return on the premiums invested. Jumbo insurance can be valuable, especially in terms of estate planning.
What about travelling? Have you ever missed a flight, experienced flight cancellations, delays, or baggage problems? In addition to the risk of experiencing a fatal accident, travel policy could cover such incidents.
If there is a financial risk, there is a protection for it, so always discuss with insurers who could guide you and recommend the appropriate cover.
FPH Publishing is not an insurer to recommend proper coverage. However, if you have a risk that you’d need help in identifying an appropriate cover, send us an email to [email protected], and we will get back to you with an answer from a professional insurer.