We all hate a particular type of drivers.
The type who simply change lanes without checking their blind spots.
Worse, they do not even signal their intention.
“What’s so hard about turning your head to make sure it is safe?”
“Do you know that you could have caused a serious collision?”
Those are your thoughts whenever someone cuts into your lane abruptly.
Now I have a confession to make.
I make the same mistake of relying on my mirrors too much.
The feeling of confirm-guarantee-chop-that there are no vehicles on my left.
As the disgruntled driver blared his horn at me, I was left muttering:
“How could I have missed that?”
False sense of assurance.
We are capable of committing this same mistake.
Cocksure that we have covered every angle.
And it turns out that we missed one spot staring right at our face.
The Trojan Horse.
The Titanic .
Tragic historical lessons that show that the best-laid plans may be destroyed by overconfidence.
Likewise, blind spots can hurt your carefully planned financial future.
You may need help to pinpoint where your blind spots may be.
We are glad to provide assistance.
1) Failure to account for elderly dependents.
We love the future.
It is sexy and exciting.
The taste of the unknown.
Planning for child dependents is obvious to all.
What is not, is looking out for our elderly.
It is easy to overlook the financial needs when our parents are healthy and working.
We fail to recognise that they will grow old.
Since young, our parents have always been our Superheroes.
Superheroes do not require our assistance.
Except they are not really Superheroes.
You have to include them in your financial considerations.
Here’s how you can do it.
Taking care of the financial needs of our elderly dependents often mean that the young ones are protected as well.
Two birds, one stone.
2) Not getting a hospitalisation plan soon enough for the baby.
Ask any parent if their baby has been hospitalised.
Most will answer in the positive.
Whether it is due to anxious parents or newborns’ vulnerability, the young ones often need medical attention at the hospital.
Most parents would only get a comprehensive medical plan after their first hospital stay.
Even my ex-advisor friend failed to recognise this shortcoming.
Frankly, it is understandable in the midst of all that excitement, confusion and false alarms that are associated with being a first-time parent.
Don’t pay a hefty hospitalisation bill as a learning fee.
Instead, get your little ones insured as soon as possible.
3) Mistaking insurance for investment.
A most common misconception.
Insurance is not the same as an investment.
We let James Bond tell you why.
Maybe it is the projected returns that unethical advisors promise.
Perhaps it is us who expect a grand return for our money.
For some reason, Singaporeans have associated insurance with investment for the longest time.
Insurance is all about protection.
A backup plan.
And backup plans usually don’t make you money.
Set a budget for insurance.
Put aside another pool of fund for investment.
Your financial independence may just be a little closer.
4) Leaving your income vulnerable.
Critical illness. Bought.
Personal accident. Check.
Hospitalisation plan. No problem.
All these will help you as you recover from the aftermath of a calamity.
However, you may soon find your (and your family’s) daily living expenses draining out your lump sum payout faster than expected.
14 days of MC.
60 days of hospitalisation leave.
If you do not get back to work, it is likely that your income will be affected.
That is when a Disability-Income Insurance lightens your financial burden.
Read all about it here.
5) Not naming your beneficiaries.
What is the point of having insurance when your intended recipients do not get the payout?
This point is so obvious yet so often overlooked.
Sign on the dotted lines and we forget about the whole purpose of having insurance.
This is especially true when you experience drastic changes in your family.
A divorce or even a death can be devastating.
However, it is important to review and change your beneficiaries in a timely fashion.
6) Buying too little or too much insurance.
Paying too much for your excessive coverage?
That just makes your retirement plan longer.
Nevertheless, it is not the biggest problem in the world.
Being under-insured is a no-no.
The lives of your loved ones can be severely altered.
You may suffer unnecessary hardship due to this overlook.
“How much is enough?”, you ask.
We hear you.
That is why we have launched our Discover section.
Find out how, when and why you need certain insurance.
A life-changing 3 minutes.
Think about all the potential blind spots.
Take a few minutes to look through your insurance policies.
If you are a perfect 6/6, you should pat yourself on the back.
Otherwise, you need to take steps to fix the loopholes in your financial arrangement.
Don’t let these insurance blind spots ruin your financial plans.
If you do not know how to, contact us and we will be glad to help.
www.ClearlySurely.com aims to eradicate the knowledge gap between consumers and Life Insurance. Our Vision is that one day, every Man, Woman, and Child will be properly insured.