IPP Financial Advisers Pte Ltd

Many people mix up insurance planning as financial planning. This is partial truth only. Why? Financial Planning involves 4 areas of planning, namely wealth protection, wealth accumulation, wealth preservation and wealth disribution. As you can see now, insurance falls under the wealth protection portion.

Why is wealth protection a vital part of financial planning? A simple ananlogy is like a trapeze artiste who flys through the air without a safety net below or worse still if the net is there but with holes all over it. Imagine if the trapeze artist makes a small mistake and falls down, will the net hold him or just tears apart when he hits the net. It would be disasterous for him if the net fails on impact!

Now you get the picture… yes, insurance will cushion us financially when we need it most. As we climb the corporate ladder, build our business empires or simply earning a simple living for our families, we need this financial cushion should we “fall”.

How do we fall? 4 things that will cause us to fall are premature and unexpected death, partial disability, total disability and finally a major & critical illness that stops us from working completely. Our loved ones will suffer financially if we are the sole bread winner of the family. We will suffer financially, become a financial burden to our family and relatives if we were to become disabled due to an illness or accident. 

Yes, it is true, insurance IS the foundation of all financial planning. It is of paramount importance that we get adequate insurance coverage for a complete peace of mind as we build our financial kingdom.