Life is full of risks. We’re aware of some of those risks but tend to ignore others. Here at Financial Architects we put a big emphasis on protecting you, your family and the assets that you have worked hard to create, build and currently fund.
What’s dangerous is that we rationalise the decision to ignore risks because "we are focusing on eating healthy and looking after our vehicles instead." We tell ourselves that, “that will never happen to me,” or “my insurance is sufficient enough to cover me”. In Money Week, we urge New Zealanders to think twice about such an important topic.
The reality is that these things happen to the best of us, every week. What’s important is to ensure they don’t cause you to be placed in a dire situation. We, humans are natural optimists, so you can’t blame us for falling into these patterns of thinking, but we must make allowances for this cognitive bias. Even if something is unlikely to happen, you must not ignore the potential issue. First, you must ask yourself this one question – if this unlikely event does happen, what are the consequences? Will my family be okay? Will my assets suffer? If the answer is yes, then we urge you to sort this out.
‘Some’ is never enough. One pattern of thinking that many New Zealanders resort to is – “I purchased some general car insurance, if anything bad happens, I’m sure I will be covered.” It’s at claim time when many individuals have found out the hard way that this is simply not true. The question you should be asking yourself this week is, “does my current risk management program account for all my assets and look after my family?”
For many people, insurance seems a lot like gambling. After all, it can feel like taking out insurance is simply betting that an unforeseen event will happen. Equally, not taking out insurance is a bet that disastrous incidents will not occur. There are even people who refuse to take out insurance because in their minds it is exactly the same as gambling, however, nothing could actually be further from the truth.
While gambling is a literal roll of the dice that involves taking unnecessary risks, insurance is the necessary protection against common risks that all individual. Gambling is buying risk. Insurance is buying protection against risk.
Whilst we are on the topic of gambling, winning at cards means playing the right hand at the right time. There is no point having insurance if it’s the wrong type of insurance. The only way to ensure that you’re holding the right cards is by speaking to an expert and investing in every policy that you and your family needs.
There are insurances that have been designed to keep your family living, assets funded, liabilities covered or to protect it in times of interruption, and there are also policies to benefit your employees.
The lesson from all of this is that there are a lot of cards that you might need in your hand. Equally, only through confrontation, research and consultation can you ensure that you’re ready for any circumstances that unexpectedly appear throughout your life.
As part of Money Week, it is our mission to help you calculate, review and arrange the right insurance that will have you and your family covered across the board. To ensure that you go into win the draw, for a complimentary financial strategy package that includes this and more, click the button below and tell us why.