I read an extremely interesting concept today. I have considerably got convinced about the idea, still digesting a few things, but thought of sharing to see what you think.
I have always been aware of insurance being necessary. As a matter of fact in my posts on advice to young women, I had layed great stress on both health and life insurance.
Quite frankly given the high inflation in healthcare costs, I would anyway recommend you to take the highest possible health insurance. On life insurance however I was generally of the view that you should take term insurance to cover the major risks that you envisage.
One of the key things in financial independence that I keep harping about is the ability to take decisions without the fear of having a job in the future.
One of the reasons that financial independence becomes a moving target is because as you grow in life, your finances improve, you get used to a better lifestyle. To be able to achieve that lifestyle if you leave your job, you need to have a much higher level of assets. So you again start saving and investing for the next higher level but by then your target amount has moved further.
This happens primarily because FEAR, the What if eventuality.
This is where if you have more than adequate insurance of different types, you transfer the risk to the insurance company and your fear can reduce. This is where I have to delve deeper on how you can leverage this ideato become more fearless.
I will keep you posted as I delve deeper into this subject.
Till next time then.