Capital protection in the form of a financial protection plan is one of the main elements of personal financial planning. For most people, this task is quite acute, because in life there are often situations that cannot be controlled. For example, lawsuits, illnesses, loss of employment, etc. In any of the unpleasant situations a person should be protected and absolutely confident in the future.
Financial planning helps to create different programs and different financial plans for each individual, family or business to avoid or honorably withdraw from this kind of unpleasant situations.
What is the protection of capital?
You can have quite realistic financial goals in your current situation, however, unforeseen circumstances and events sometimes threaten the failure of your personal financial plan. Let’s imagine life as a «Financial House».
You have certain financial goals, plans, an approximate image of the future. You have some savings, pay certain loans, think about the education of your children, take care of your future pension yourself. Now your life is quite stable and you, in general, are satisfied with it.
But what is waiting for a house that was built without a foundation? It will collapse easily at the first natural disaster. Likewise, your financial situation will be shaken when an unforeseen negative event occurs. How will your life, your family’s life and your financial goals change if you, for example:
- you lose your main source of income for 3-6 months;
- you will lose your ability to work for 1 year because of an accident;
- You will urgently need serious and, therefore, expensive medical services;
- You will die.
Will your goals be fulfilled in these cases? If so, for how long? Will your family live on at the same level? It is impossible to foresee all circumstances in advance. What happens when they attack is also a difficult question. However, this can and must be protected. The protection of capital is a reliable foundation of the Financial House.
What does financial protection consist of?
Personal risks can vary significantly from person to person. Therefore, the elements of protection against them for different people are different. But we can distinguish some common components of such protection:
The reserve fund is a stock of money in the bank account, which will help to live a certain time with the absolute absence of any income.
An insurance product that allows you to protect against risks associated with temporary, full or partial disability, as well as the death of a family member, trauma, illness, hospitalization. Correctly selected complex of insurance products will provide financial support in a critical situation without ruining the savings and threat of financial goals.
Insurance of financial risks
Sometimes there are situations, the course of which a person cannot influence. You can aim to reach a certain material level, based on your current situation, but any unforeseen event can disrupt the intended plan. Such an event could be:
- loss of the main source of income;
- an accident that caused loss of ability to work;
- the need for an expensive operation;
Such situations are unpredictable, as are their consequences. But you can protect yourself from the tragic finale. It is for this that there is a plan for financial protection.
Plan of financial protection and its advantages
Since sometimes situations develop that are not amenable to control and calculation (illness, lawsuits, loss of work), they must be protected. Financial planning provides for the creation of different programs and plans with an individual approach to avoid financial problems in consequence of such unpleasant situations or to withdraw from them with minimal financial losses.
There are many ways to protect yourself and your family from the negative material consequences caused by unforeseen events. Specialists will help you choose what you need. Working exclusively with reliable insurance companies, we will choose the best suited for your case set of insurance products that can provide comprehensive protection against all your risks.
The financial protection plan is the simplest method of monetary planning, objectively necessary to anyone. This is a concern for current cash needs, financial protection of the family and planning for the future.
To insure yourself against such troubles as loss of income source or large unplanned expenses, to protect the most expensive ones – children, parents, family, to preserve the former standard of living in the event of unpleasant surprises, to protect your future, your well-being and worthy old age – the task that ever arises before each.
Well-thought-out planning will allow you to retire earlier, accumulate larger capital and provide yourself with greater incomes in old age. The financial protection plan gives a sense of security in the present, a sense of stability in the financial situation of the family, and confidence in the future. Thanks to him you will be sure that in any incidents your family will not need anything.
The earlier a person starts to think about it, the better. When you retire, your standard of living will not get worse than it was before. You will have the opportunity to spend your time as you like – in travel, entertainment, helping children and grandchildren.