Every minute of every day, somewhere you can get an update of the local and worldwide stock markets and commentary of how they are doing. We constantly hear about the doom and gloom that is being thrust upon us by a 1% decline followed by the exuberance of a 1% increase in the stock markets. No wonder people who don't work in the investment industry get concerned.
Most of my clients are Physicians, people who work long hours doing demanding work and then are expected to know everything about their financial security. Unfortunately, they, just like most everyone else who doesn’t work in the financial field don’t. They are bombarded 24/7 with financial news, and advertisements that assure them of the pot of gold by placing their investment here or there. And then reality sinks in!
Banks and the rest of the investment community look at how much of your funds they can take and place in their investments, giving little or no consultation on the basic needs of creating a firm foundation on which to build that financial success. Their advice is that if you really think you need insurance, just get the cheapest thing you can find as your investments will take care of you. In an ideal world, that may be true if you live long enough and stay healthy, but what about the 38 year old Cardiologist who has a stroke. When she finishes her rehabilitation, she can never work to the same level she was at, but she still had student debts to say nothing of her new mortgage...how is that investment advisor going to help her then? What about the young family doctor who recently opened his practice and has just had a severe skiing accident that places him in a wheel chair for 18 months while he goes through extensive rehabilitation? What about the Radiologist who died in a car accident...how does her family survive on the limited funds that she has accumulated? How about the Urologist who was getting ready to retire and is diagnosed with liver cancer that has metastasized in other parts of his body and he now knows how limited his time is? These are actual examples of what clients of mine have been through and thank goodness they listened to me.
Properly constructed insurance programs for Life, Disability, Critical Illness and Long-Term Care are the bedrock of your financial security and are the least expensive way to secure that. Don’t fall prey to any other advice about how unnecessary insurance is, because it just isn’t true and common sense will confirm that.