Things happen. Yes, you read it right. There will always be rainy days. One of things I learnt during this COVID-19 period is that nothing is really guaranteed. Some people lost their jobs and some businesses have shut down. This resulted in many losing their income. And this has nothing to do with anything they have done. So, what do you need to do to avoid loss of income if you ever find yourself in an unpleasant situation? How do you manage the challenge of losing your income?
One of the ways to ensure you don’t lose your income irrespective of your situation is to have a life insurance.
You’ve already got a lot to deal with. So, why buy life insurance at all?
It all comes down to protection.
The idea of protecting things like your car or house are pretty common. Even if car insurance weren’t mandatory in most provinces, buying it would probably be a good idea. You’d want to make sure you could cover any damages from an accident – especially if you’re at fault. And protecting your investment in your home from the unexpected like an earthquake, fire, flood, theft, etc. is also a no-brainer.
You protect your ability to earn an income.
One of the most important things to protect before all others is your ability to earn an income. Your income enables you to not only buy your car and your house but also the insurance to protect those things. If you were to lose your income, those things could also be lost. This is the case if you can’t afford to fulfill your financial obligations on them.
Getting laid off or fired could be a cause of lost income. In that case, you still have the ability to work, which means finding a new job is possible. But what happens in the event of a disability, critical illness, or premature death of a breadwinner? Those situations are a bit tougher to bounce back from – especially the last one.
You protect your assets.
Before becoming financially independent, a financial situation may typically be less secure, meaning you might have more financial responsibility than wealth. For example, if you don’t have a lump sum of cash to buy a house, you’d need to finance the purchase over a longer period of time via a mortgage. This creates a responsibility to continue making the mortgage payments in full and on time. Losing your income would be devastating since it could affect your payments – and when mortgage payments can’t be made, you might lose your home.
In summary, protect your ability to earn an income
Getting the right type and the right amount of insurance can seem complicated, especially if you’re considering all the different types you may need. That’s where speaking with a financial professional might come in handy. If you’re looking to protect the most important aspect of your financial situation (namely, your ability to earn income) and you’d like to see your options, let’s talk. It would be my pleasure to help you get a better understanding of your options.
Before you go, I will like to ask you this question. How do you want to manage the challenge of losing your income? If you don’t have a clear answer. Don’t be hard on yourself. It only means you need to re-organize your priorities. Start today to protect your ability to earn an income.
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Featured post image credit: Expat by Expat
