April 2013 – Points to Ponder

17 Apr

What is happening in our economy … How are financial markets doing … And a story on  “Risk & Protection”

Dear Readers,

Thanks to all of you for accepting our invitation, for accessing our blog, and for your participation & feedback.  Your positive feedback inspires me to explore new ideas & topics. We look forward to more of your active participation.

One of our readers, an ‘experienced blogger’ and ‘twitterati’ (yes, he does have crooked thumbs, and is prematurely hunchbacked … Ha Ha) recently commented that the normal attention span of ‘online content scanners’ (people who browse & read online content) is getting shorter and focus is on single subjects, rather than a wider range of comments.

I also attended a Google seminar recently, which backed this observation …

We have taken this hint … and will focus on single subjects in our monthly blog.

A recent real event within my professional circle has made me write this article.

Topic of the Month – Risk & Protection

I introduced a young couple, Shaun & Sarah, to you in the December 2012, Jan 2013 and Feb 2013 blogs. Let us use these characters as the main players in this story.

Act 1

Picking up the story midway from the Feb 2013 blog (see Feb 2013 Blog for details) ……

A friend/family member/well-wisher introduces them to this guy Hari. They listen to what Hari has to say, ask a lot of questions, discuss various options, and decide on a course of action………

Hari has brought up the subject of Risk Protection and posed a few questions to think about …

Do you have financial liabilities ? (mortgage, debts, etc.)

Is your current lifestyle funded by your income/salary producing activities ?

What if, for some reason, you are unable to work/function normally ?

How would you fund your debt obligations and daily lifestyle ?

Bottom line – How many days, weeks, months can you financially cope without having to sell your hard earned assets ?

Shaun & Sarah have a chat …..

We have been Ok so far ……

Nothing will happen to us …..

Why pay for insurance …. dead money ….. can do better things with our money …..

Did you say something about insurance in our super ? ……

We’ll be all-right …..

Time goes by, life goes on, till one day Hari gets a call from Sarah …… Shaun is in hospital, We need to talk

Now let us rewind ………. Pretend we are back where Shaun & Sarah are having a frank discussion on Risk Protection ……….

Act 2 – Shaun & Sarah have a rational discussion on what Hari has brought up – Risk Protection …..

Yes, we have a mortgage and other commitments.

Yes, our current lifestyle is solely funded by our income/salary.

Yes, We will have to use up our hard earned savings, if We are unable to work/function normally.

No, our savings would not last us for more than a few months.

What about our long term goals, if we use up our savings ?

Bottom line – Hari is right, We need to have suitable protection …..

Shaun & Sarah Discuss their needs with Hari and decide on adequate Risk Protection. Hari organises cover and helps set it up for Shaun & Sarah.

Time goes by, life goes on, till one day Hari gets a call from Sarah …… Shaun is in hospital, We need to talk

Hari assists Sarah and helps them with their claim. Financial assistance from the claim helps Shaun & Sarah to cope well. Life goes on, with minimum disruption ….. A satisfactory outcome.

Moral of the story – We cannot predict what tomorrow will bring, but We can try and take sensible action to cover and mitigate.

As the famous saying goes ….. Wishing, and hoping, and crying, and praying will not help …. But your Insurance Policy just might …..  

 Looking forward to hearing from you


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Posted by on April 17, 2013 in Uncategorized


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