Insurance & Wealth Protection

We are back to this topic again. In my opinion, most people know how to make money. In other words, they know how to accumulate wealth well. However, only few of them know how to protect the wealth that they have accumulated.

In fact, it is similar to the 'chicken and egg' problem; which one comes first: is it the chicken or the egg. Applying this concept to our wealth, we will come across to the question, which one is more important; to accumulate wealth or to protect it. Well, in my opinion, which one comes first or which one has more priority is not crucial. Why do I say that? It is because I believe that both are important and they work complementary side by side. Therefore, timing plays an important role in maintaining the cohesiveness of wealth protection and accumulation.

In general, this cycle begins when we get our first salary or income. At that moment, we have to ask ourselves, how to accumulate the income to achieve our long term objective and how to protect it during any turbulence in our life.

Alright, let us look at the wealth protection in this posting as the title suggests. The wealth accumulation will be discussed in other section in this blog.

Regarding the wealth protection, let me revise the three reasons why I feel it is very important.

• we can't predict what will happen to us in future
• medical fee is unpredictable yet surprising
• it will eat up the wealth that we have built up

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Based on those reasons, I told myself that I have to workout an insurance scheme that can give me a reasonable protection that is aligned with my financial objective and timeline.Otherwise, I will not be ready to move on to the next stage, which is the wealth accumulation. However, whom should I approach? There are tens of thousands of insurance agents in Singapore and you know what kind of impression I have when I heard the words "“Insurance Agent". Ahaa.They are only trying to con my money.

Yeah, I think that's also the public opinion on insurance agents. I used to have that kind of thought. That's why two years ago, I always had meet-up with a lot of agents to find one that really suits my financial objective. I tried to know as much as possible about insurance and the person who will handle my finance. I do not want to be cheated or whatsoever. I told myself that I had to rely on myself. Yes, that's true. I met and talked to a number of agents from different companies. I gained knowledge in this field.

However, I couldn't find a person that is able to put my interest above his/hers. Till one day, I met a person that introduced herself as a "financial adviser". Wow, it sounds cool, doesn't it? But what is a financial adviser exactly? How differ is financial adviser compared to insurance agent? What is their main objective? How do they do thing? Well, we are going to discuss these in the next posting...

wish you a happy reading:)

to be continued