What is the importance of insurance in Financial Planning?



How important is insurance in the financial planning process and how much weight is given to insurance in a financial plan?

What is the importance of insurance in Financial Planning?
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5 Replies to “What is the importance of insurance in Financial Planning?”

  1. Financial planning means taking a realistic look at where you are and planning, saving, budgeting for your future. Insurance is important because financial planning does not take in to account what would happen is your car is stolen, what about if you get ill, or what about your loved ones if they die. How would extra and un expected costs affect your plan?

    Insurance is all about risk, while no insurance can ever stop the event from happening, for example life insurance will not make you immortal, it can protect you financially if it happens. By taking insurance you are passing the financial worry of something happening to an insurance company. So that if you get ill, your health insurance pays your medical costs instead of having to distroy your plan and quickly find however many thousands of pounds.

    Quicker more accurate budgeting.Hope this makes sense?



  2. It’s the backbone of planning. You have to make sure you don’t go backwards financially before you think about setting yourself forward.

    If you save 10% of your income for 10 years and then go out on disability for one year, you’ll lose all of your savings. But, if you’re protected with insurance then those savings would be protected as well.


  3. Managing the risks that can threaten your financial well-being is every bit as important as saving and investing toward your goals. And that’s the role of insurance in a financial plan.

    Insurance is a provision for the unexpected events that, if not prepared for, could hinder the pursuit of your goals. Like a careless driver who broadsides your car. A disability that prevents you from working. An extended stay in an assisted living facility. Even the death of a loved one.

    Being properly insured is not only a wise financial decision, but a responsible personal act that provides you and those who depend on you with a genuine sense of security.

    First Command offers a wide array of insurance products to meet a wide array of needs, including:

    Life insurance to support your survivors’ financial needs in the event of your death

    Property/casualty insurance to protect your investment in your home, auto and other personal property, plus liability coverage that can help protect your assets in the event of a lawsuit or judgment against you

    Disability income insurance to help replace income, should you be unable to work

    Long-term care insurance to help pay for assistance with activities of daily living for an extended period of time

    But that’s not all. As part of a comprehensive financial plan, your First Command Financial Advisor can help you develop an effective insurance strategy to protect your assets and provide for the financial security of your loved ones. To learn more, contact a trusted First Command Financial Advisor today.






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