Always opt for insurance cover
Insurance cover, and more importantly, the right insurance cover is a necessity in today’s world. If I asked you to pay me a dollar every month so that I’d pay you a thousand if you crash your car, you wouldn’t hesitate. If I asked for a dirham a month just to make sure you’d get free healthcare, you’d probably say yes. But then you introduce the “I” word – insurance. And sometimes, clients feel they just don’t need insurance cover.
It’s really interesting that insurance cover isn’t something that comes intuitively to clients. They immediately understand the need for long-term investments and short-term profit plays. But they often think that insurance can be put on the back burner. “It’s never going to happen to me, is it?” they think.
But insurance is extremely important. And there are no faith-based values attached to it. It’s not a question of luck; nor is it a game of chance. Insurance is an important tool for risk management – and risk management is at the heart of all we do for you.
How we select insurance cover for our clients
When we select insurance contracts for our clients, our aim is simple: we transfer the risk from families, hard-working professionals, and even corporate clients who can’t afford this risk to insurance companies who can.
Let me explain. Insurance isn’t personal. It’s mathematical. Insurance companies pool risk, and the price at a premium. So say, if the stats say that 1 in 100 people from your cohort or age group will have an accident, be made redundant, be hospitalised or even pass on this year, the insurance company computes this probability. It designs its pools and premiums to take this into account. For them, it’s business as usual.
This is important. If the unthinkable happens to you, it doesn’t matter to the insurance company because the other 99 clients in the pool are still paying in their premiums. They’re only losing 1% in premium. But if you’re the one a life-changing incident has happened to, the loss to you, your family, or your business is 100%. And that is devastating.
So the bottom line is that insurance coverage is one of the most effective forms of risk management available to you. By paying a premium, you’re avoiding the possibility of suffering a 100% loss.
So, always opt for insurance cover. It’s the best way we have of passing the risk from you, your family, and your loved ones to insurance companies – who are designed to be able to manage and afford it. And that’s why we include insurance and robust cover for all sorts of eventualities it in all the financial roadmaps and strategies we design for you. We don’t want bad things to happen. But we also want to make sure you’re 100% prepared in case – just in case – they do.
About Mike Coady
Mike Coady is an expat expert based in Dubai and is on hand to help with all of the above and more.
Mike is an award-winning money coach and industry leader in the financial sector.
Qualified to UK Financial Conduct Authority (FCA) standards, a member of the Chartered Insurance Institute, a Fellow of the Institute of Sales Management (FISM), a Fellow of the Institute of Directors (FIoD) and featured as a highly qualified Financial Adviser in Which Financial Adviser.
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Blog published by Mike Coady.