How serious are you about Financial Security?

Extended Family Group Walking In Park

For most of us our physical health is a top priority and next, is our financial health. Studies have revealed that while many people today will be in the workforce for at least 30 years, their income growth does not always increase throughout their working careers.

The harsh reality is that if you are in your 40’s or 50’s and are behind on your retirement savings goals, you’ll either have to work longer, or reduce lifestyle spending. On the other hand, if you are in your 20’s or 30’s, you still have a chance to make a maximum amount of money, and it is therefore important to develop smart spending habits. Otherwise, the attraction towards an expensive lifestyle as you get more money may hinder your ability to save. The truth is good spending habits established early on can make an amazing difference over a lifetime. Now this sounds good in theory but it can be challenging to save in your early working years when you are paying a mortgage and sending children to school, but with a little discipline it can be done. The old saying of “pay yourself first” is of key importance. Make a commitment to save a set amount from your income for example, 10%; and budget your expenses with the remaining 90%.

Starting a financial plan early on could mean the difference between a modest retirement income and a very comfortable lifestyle. An essential part of smart financial planning at any stage of your life is making sure that you set aside enough for your life insurance policy. Some people may ask the question “Who really needs life insurance anyway?” Is life insurance only for people who have a family to support? The answer is no. Life insurance is for those who want financial security for themselves, their partner or their family. On the following page are various scenarios -:

Are you planning a family or already have an established family?

Life insurance should be purchased if you are considering starting a family. Your rates will be cheaper now than when you get older and your future children will be depending on your income. And if you already have a family that depends on you financially, then you definitely need life insurance. If you’re a parent with schooling children and both parents work, like many do, how will you replace the lost income of your spouse? Life insurance is especially important if your expenses require two salaries.

Are you a young single adult?

A single adult would usually need life insurance if they help support an elderly parent or another person they may care for financially. Purchasing life insurance while you are young is also sensible so that by the time you need it, you do not have to pay more due to your age. The older you get, the more expensive life insurance becomes and you risk being refused if there are problems with the life insurance medical exam.

Are you in debt?

Life insurance can be a way of ensuring that your debts are paid off if you pass away. If you pass away with debts, your loved ones will be burdened to pay them off and left with no legacy.

Are you a working couple “without” children?

Both persons in this situation would need to decide if they would want life insurance. If both persons are bringing in an income that they feel comfortable living on alone if their partner should pass away, then life insurance would not be necessary except if they wanted to cover their funeral costs. But, maybe in some instances one working spouse contributes more to the income or would want to leave their significant other in a better financial position, then as long as purchasing a life insurance policy would not be a financial burden, it could be an option.

Do you have young adult children?

Some people purchase life insurance for children as they reach early adulthood to help them get ahead start on life. A permanent life insurance policy may be a way to build savings for them and give them an opportunity to have a life insurance policy that pays for itself by the time they have a family of their own, or  they may want to use the cash portion to borrow against for a major purchase.

What happens in the case of critical illness or disability?

Let’s face it, it’s very frightening to think about how your life would change if you were diagnosed with a life threatening illness like cancer; or if you had a fatal accident that left you disabled. How would you supplement your income and pay your bills if you could not work? In the event that any of these situations occur it’s always better to make sure that you have a plan in place. Insurance will help reduce financial stresses and can complement disability and life insurance protection needs. By helping pay for the additional expenses, insurance offers you, your family, and if applicable, your business, added financial security—so you can focus on recovery.

AIA aims to help you find an investment approach that fits your financial goal and risk appetite by combining innovative products with expert advice. AIA understands that each of you have unique financial goals, therefore AIA has designed a line of investment linked plans that offer you smart solutions to satisfy your portfolio needs by delivering consistent performance. Investment linked plans offer you the opportunity to participate in investment opportunities while ensuring you have financial protection through life insurance. You can benefit from investment opportunities in developed and emerging markets, and in different ranges of risk/return profiles.

This article was published in the December 2016 Issue of Inspire Living Magazine. Download it here!

This advice on family living is made possible with support from