Financial planning is the process of meeting your life goals through the proper management of your finances. It includes elements of protection, wealth creation, planning for contingencies and emergencies, as well as planning for specific milestones in life. But where does life insurance fit in?
The role of insurance in your financial plan
Insurance is an essential part of any sound financial plan. Being prepared for the unexpected will ensure that you can still reach your goals after facing a financial crisis. And an insurance policy will keep you from emptying your emergency fund. Insurance can also protect your loved ones if you’re injured in an accident, become sick or disabled or die. Certain situations can be expensive for those without coverage, so it’s important to purchase any policy you need based on your financial situation. Most experts recommend getting insured before you get serious about investing.