You set aside a little bit of money with a guarantee that you will have access to a lot of money in the future. This is the rationale behind purchasing home, auto, business, life, health, disability, liability and pretty much every type of insurance that exists.
Recently there was a heartbreaking story about a Toronto mother who sustained serious injuries while on vacation in Trinidad, and thankfully there was a tremendous outpouring of love and support (which is typical of Canadians) which raised more than $50,000 to bring her home to Canada. It popped into my head as one of my clients purchased travel insurance this week (which cost $28.84 for $10 million in emergency medical expense coverage) that she purchased money at a discount.
Insurance tends to be viewed as a grudge purchase and in many cases people buy it because they are forced to do so either by a government agency, regulator or a lender. Sometimes the money you purchase can be quite expensive (for example auto insurance) and you are forced to do it. Have you ever noticed that no one ever forces you to buy the money that protects you, which incidentally, is usually inexpensive when compared to the money you are forced to buy to protect the interests of others.
The money that you need or may need in the future (which nobody forces you to purchase via legislation or contract) is something too many people don’t like to think about or talk about, and too many of my colleagues are too afraid, shy or timid to even broach the subject. They don’t want to make people feel uncomfortable; however our job is to make our clients feel comfortable when the unexpected happens, because life happens and we are the ones who are supposed to show up with a cheque when things fall apart.
When someone tells me they can’t afford to purchase money at a discount to protect themselves, their family or their business, or that they don’t think they need it, or nothing will happen to them, I respect their answer; however it is still heartbreaking to see the devastating financial effects when tragedy strikes, which could have been avoided with the astute purchase of money at a discount.
One of the things you need most is always on sale, I can help you figure out the best option that suits your needs and budget.