Protection Planning, or Insurance Planning, is a form of Risk Management exercise whereby identified financial risk of some dreaded events are transferred to a Insurer through a contract.
Getting a large number of policies or paying high premiums does not necessarily mean that you are well-protected. You could be over insured in some areas and leaving loopholes in others or using the wrong type of policies in your portfolio. Refer to these articles on how to construct a proper Protection Portfolio and what to look out for.
Why is it important to construct a proper Protection Plan? The answer is actually very simple. Life, people say, is unpredicable. And it hits you when you least expects it to.
No amount of monetary compensation can make up for the emotional pain and anguish of losing someone you love or seeing them in pain. The only thing it does is to prevent more worries over how life can continue without a regular income or the possible medical bill.
For those of us who are fortunate enough to still enjoy time with our love ones, the least we can do is to prevent the worries for them in the event that that unfortunate day should come too early.
My own experience has taught me not to take Protection Planning lightly. Do not let your family go throught what I had gone through before. Do read My Story.