By the time you have a family, you will do financial planning; this is a critical plan for your family finances. Doing financial planning is something significant in a family, you hope your family will be safe from the risks that can happen anytime.
The head of a family commonly become a breadwinner. He is the principal pillar of family life since economically he will make money or earn a living. Whatever the reason, whatever the job, the most important thing is to bring the money to support the family, to the cost of home maintenance, school fees, food costs, and other debts.
Having a right financial balance is the main thing before you can start investing and developing your finances. Different types of investments can keep your money growing, for example, buying stocks and insurance. However, coverage for the protection of nuclear family will be a top priority, especially protection for the breadwinner.
Why does the breadwinner become a priority?
The task of the breadwinner is making a living for the family, to his wife, and children. If a breadwinner gets sick, gets injured, disabilities or even dies, then who will make money? Wife? Children?
Life protection for the breadwinner, at least this protection fund will be passed on to families and children. If the breadwinner cannot work or critically ill, of course, he can not work actively. If he gets into an accident, will live in a family stop? No, life will go on, with life insurance for the breadwinner as a top priority. Income protection can be passed on to families and children.
The head of a family should be a priority in life insurance because he is a money-maker. The three standard risks that occur in life are sick, old, and die; this is a definite risk. Death is a risk of being that happens total 100%. Anytime and anywhere, we must always be ready to die.
Family insurance planning is one of the essential things because by having family insurance, the risks that can cause significant financial loss and disrupt the welfare of the family can move to the insurance company. In the end, the family still felt safe and carry out usual activities. Therefore, family insurance planning, you should prepare well.
In principle, life protection is the main thing, while critical illness insurance and health insurance are alternatives that often become the primary thinking for a family. However, in reality, health insurance is not an insurance that should be a top priority for a family. Meanwhile, life insurance should be a priority for the family, especially for the breadwinner.
Life insurance or health insurance?
Everyone will die, and nobody knows when and how. So, this will always happen. The risk of dying is enormous, not a just mental loss due to sorrow but also material loss. If a person who dies is the head of the family and as a life support, then this is a significant loss.
Because every person must die, then life insurance is vital especially for the head of a family. Life insurance money can be used to pay for medical expenses before death (if ill), for the payment of final fees (funeral expenses), for debt repayment, protection of education funds, unexpected costs, household expenses, etc.,
Also, life insurance premium is cheaper compared to insurance premiums for other benefits, such as critical illness insurance or health insurance. Therefore, life insurance is something you should think about when you want to plan the protection for your family.