Protect Wealth Before You Create It

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How many time have I heard:  “I will do it when I can afford it.” When will you be able to afford it, whatever “it” is?

Creating wealth is a process.  You will need resources on this journey.  Resources like your health (if you get sick and cannot work, how will you earn an income?).  The tools of your occupation, that could be a laptop, a cellphone.  High value/cost items that you bought, such as a house and vehicles.

Protecting your wealth as you build it, means you need to look at insuring the risks:

  • Insuring yourself against loss of income (without income you cannot afford anything, not even food!);
  • Insuring your health – medical expenses can make you poor in the wink of an eye;
  • Insuring the tools of your trade – like a laptop and cellphone;
  • Insuring your high worth/cost items against the loss of capital that you put in – think house and car
Cellphones are computers in our pockets and I cannot do my work without it. Let’s assume my cellphone costs R18 000. If I lose it, I want the same one or a better one. Insurance would cost R150 per month. Or I could use R18 000 from my savings to replace it. In my mind R150/month is cheaper!

 This is the case for Short Term Insurance.  Protect Wealth before you create it.

If you need any help with short term insurance, please contact me.  That is what I do – I help people protect their lives and wealth!

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1 Response to Protect Wealth Before You Create It

  1. Jangroentjie says:

    There is a huge difference between income and capital. Income could be monthly, for example, but capital is built over time. From income. When you start using capital for income, you are in trouble. Unless you can replace something from income, rather insure it. It is much cheaper.

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