Why Do I Need Insurance?

"I used to have so many different types of insurance that I lost track of them all. With Kelvin Chong & Associates, I have now found the right types of insurance for me. It's great how you can save money so easily and still be properly covered."

I'm healthy, comfortable, content. Why should I worry about insurance?

For any rational person, the thought of death and disability is uncomfortable and counter-productive. And insurance, with it's intrinsic association with those facts, seems like an unpleasant thing to contemplate. Let's worry about that later.

Just another financial tool

But insurance isn't about accepting the inevitable that awaits us, but rather an integral part of financial planning. Like a savings account, RRSP's, or investments, insurance is a tool, but, unlike those tools, it is one that is specifically designed to protect us from potential financial risk.

We all have goals after all

When faced with a life-changing experience, whatever financial goals we might have had—a house, cottage, university tuition—can be thrown into jeopardy. Insurance is there as a hedge against that risk, to make sure that if the life-changing occurs, we won't have to give up on those financial goals.

But we better not wait until the house burns down...

When good health is with us thoughts of death and disability are far from our minds. We'll worry about illness when we get there, right?

Wrong.

Insurance, perhaps surprisingly, is not just about a payout. Money, after all, doesn't buy insurance, good health does. Money simply pays the premium. When we are healthy, fit and able to plan rationally for potential risks to come, that is the time to buy insurance.

After all, once the house starts to burn, buying insurance gets hard.

It's about the future

We often think of insurance as a one off thing. In the case of death, it's seen as sort of a macabre lottery, a payoff to ease some of the pain associated with the loss of a loved one. But it's about more than that. It's about what happens from the moment of crisis onwards. The effects of death, illness or disability aren't static, they continue to alter lives long after the initial incident. When earning potential is lost, insurance is there to ensure that the future remains as bright as possible for ourselves and those around us.

Peace of mind

Ultimately, insurance is about peace of mind. It is about knowing that our loved ones are protected, financially secure, and can benefit from our hard work to invest in their futures. Insurance is not onlyA about us, after all, but about those around us.