We all assume we will live long and healthy lives.  So why do we need insurance? Insurance will only protect you against financial consequences of life events.  No money in the world will compensate for emotional loss.  The two together though are a toxic mix.

We all see and hear TV, radio and print media ads from various health organizations, retailers, pharmaceutical companies, etc. highlighting different illnesses, health challenges, health advances, cures, etc.  We all assume this happens to ‘other’ people, we hope it never happens to us.  The reality, is it happens to very normal, healthy people, leading very normal healthy lives.  Some of us have hereditary predispositions, but there are also all the various uncontrollable factors such as environmental factors (stuff in the air we breath and water we drink).  There are uncontrollable circumstances such as ‘accidents’ which we have no control over.

Whether hereditary, lifestyle related, accidental – controllable or non-controllable, the financial consequences of sickness, accident, or death are significant and severe.  These event’s impact our ability to generate income which pays daily living expenses, provides for our families, provides for our future and retirement, in short – pays the bills.  These events happen to the very young, middle aged and elderly.  No one is immune.

Different insurance types are designed to provide financial support for different life events.  Life Insurance provides a lump sum payment in the event of death.  Critical illness insurance provides a lump sum payment in the event of major illness (heart attack, stroke, cancer, etc), Disability Insurance provides and income stream in the event you can not work, Long Term Care Insurance provides a monthly income when you can’t take care of yourself for daily living activities.

In most cases, you are paying a discounted premium for an eventual payout.  Many of us purchase warranties for appliances, cars, etc in case they are broken, lost or stolen.  Life insurance, Critical Illness Insurance, Disability insurance and Long Term Care Insurance likewise is a warranty plan for your most valuable and irreplaceable asset – yourself and your health.

Everyone needs some form of insurance protection.  The type of insurance and amount of insurance will vary depending on life circumstances, lifestyle, financial circumstance, age, etc.  No one type of insurance provides total protection.  In most cases a combination of coverages are required.