One of the most common misconceptions about life insurance is that it is for persons who die or are dying – this according to Financial Advisor at Sagicor Insurance Brokers, Stayciann Smith. Contrary to that belief however, she says that life insurance is for those who are alive following the death of the family’s main breadwinner.
“Life insurance is an essential component of any financial plan and it is one of the few financial products that hold their value”, she stated.
Life insurance is a policy that pays monetary benefits upon the death of the person insured. It is an agreement relating to death, accident or serious illness. In other words, a life insurance policy offers one main benefit to its owner and dependents: financial protection!
The life insurance policy offers policy holders’ and dependents four key benefits: protection from unplanned circumstances such as death or illness; wealth accumulation; retirement planning and financial protection against disability.
The common misconceptions about life insurance is that it is for persons who die or are dying
But that is just one of the many roles of life insurance. Sagicor’s Financial Advisor revealed that life insurance policies can contain numerous options which add more value to the basic agreement. “These options provide for future family goals such as home and/or motor vehicle ownership and payment for higher education separate from the standard provision of financial protection when the policy holder dies”, Ms. Smith elaborated.
Some of the additional options include retirement planning, investments, estate planning, critical illness insurance, liability and property insurance. “These options have expanded to include investments in foreign currency instruments – and with the instability of the Jamaican dollar, investing in US instruments secures the investment’s future value.”
So is life insurance a necessity or a luxury? Contrasting this insurance with coverage for property and motor vehicles, Ms. Smith remarked that because life is infinitely more valuable than possessions, life coverage insurance should be seen as a necessity. She added however, that although important, life insurance is still not an easy sell. “The first thing that some will say is that they cannot afford it so the four corner stones of financial planning are explained and from this I am able to show them where funds can
be identified.”
As a Financial Advisor, my duty is to ask the ‘uncomfortable’ questions that will help individuals to recognize the importance of life insurance and identify where the needs exist. This in turn will show them how financial planning – an element of which is life insurance – can help them to take the ‘comfortable’ steps to protect their dependents and also assist in achieving their financial goals,” she disclosed.
There are several significant components to life insurance which makes it even more attractive – for example, disability protection and wealth accumulation are critical elements in a policy. Disability insurance offers protection to the policyholder in case of sudden incapacity. According to Smith, all persons who work require this component in their policy.
“Consider what would happen if you were suddenly disabled? How long would you be able to afford housing, food and other necessities? It is also important to note that the disability could also require rehabilitative services not covered by medical insurance as well as costly modifications to your home and vehicle,” she noted.
It is the dream of almost every person to acquire some level of financial security. The investment component of the life insurance policy provides future financial security for major purchases such as a home or for retirement expenses. “This investment forms part of a long-term strategy”, Smith outlined. “It is part of a commitment to ensure the desired goal is achieved.”
Another collective myth is that life insurance is only for the rich. Smith says that this misconception is borne out of a lack of knowledge on the part of the uninsured. “Education is a large part of financial planning and so I try to impart as much information to any one I encounter. One important point I share is that the rich remain rich because they plan. If you ‘fail to plan, you plan to fail’,” she concluded.
So is life insurance a Necessity or Luxury to you? And please remember to share this article
Share this post:
One of the most common misconceptions about life insurance is that it is for persons who die or are dying – this according to Financial Advisor at Sagicor Insurance Brokers, Stayciann Smith. Contrary to that belief however, she says that life insurance is for those who are alive following the death of the family’s main breadwinner.
“Life insurance is an essential component of any financial plan and it is one of the few financial products that hold their value”, she stated.
Life insurance is a policy that pays monetary benefits upon the death of the person insured. It is an agreement relating to death, accident or serious illness. In other words, a life insurance policy offers one main benefit to its owner and dependents: financial protection!
The life insurance policy offers policy holders’ and dependents four key benefits: protection from unplanned circumstances such as death or illness; wealth accumulation; retirement planning and financial protection against disability.
The common misconceptions about life insurance is that it is for persons who die or are dying
But that is just one of the many roles of life insurance. Sagicor’s Financial Advisor revealed that life insurance policies can contain numerous options which add more value to the basic agreement. “These options provide for future family goals such as home and/or motor vehicle ownership and payment for higher education separate from the standard provision of financial protection when the policy holder dies”, Ms. Smith elaborated.
Some of the additional options include retirement planning, investments, estate planning, critical illness insurance, liability and property insurance. “These options have expanded to include investments in foreign currency instruments – and with the instability of the Jamaican dollar, investing in US instruments secures the investment’s future value.”
So is life insurance a necessity or a luxury? Contrasting this insurance with coverage for property and motor vehicles, Ms. Smith remarked that because life is infinitely more valuable than possessions, life coverage insurance should be seen as a necessity. She added however, that although important, life insurance is still not an easy sell. “The first thing that some will say is that they cannot afford it so the four corner stones of financial planning are explained and from this I am able to show them where funds can
be identified.”
As a Financial Advisor, my duty is to ask the ‘uncomfortable’ questions that will help individuals to recognize the importance of life insurance and identify where the needs exist. This in turn will show them how financial planning – an element of which is life insurance – can help them to take the ‘comfortable’ steps to protect their dependents and also assist in achieving their financial goals,” she disclosed.
There are several significant components to life insurance which makes it even more attractive – for example, disability protection and wealth accumulation are critical elements in a policy. Disability insurance offers protection to the policyholder in case of sudden incapacity. According to Smith, all persons who work require this component in their policy.
“Consider what would happen if you were suddenly disabled? How long would you be able to afford housing, food and other necessities? It is also important to note that the disability could also require rehabilitative services not covered by medical insurance as well as costly modifications to your home and vehicle,” she noted.
It is the dream of almost every person to acquire some level of financial security. The investment component of the life insurance policy provides future financial security for major purchases such as a home or for retirement expenses. “This investment forms part of a long-term strategy”, Smith outlined. “It is part of a commitment to ensure the desired goal is achieved.”
Another collective myth is that life insurance is only for the rich. Smith says that this misconception is borne out of a lack of knowledge on the part of the uninsured. “Education is a large part of financial planning and so I try to impart as much information to any one I encounter. One important point I share is that the rich remain rich because they plan. If you ‘fail to plan, you plan to fail’,” she concluded.
So is life insurance a Necessity or Luxury to you? And please remember to share this article
Share this post: