Getting a Job
Starting work for the first time is one of the most important things in life. When you get a job or even start a business, you should take some time to consider your retirement and providing protection for your dependents in the event of death or serious illness.
Your options will depend on your work situation. If you are an employee you can join a pension scheme sponsored by your employer if they have one in place. Self-employed can take out a personal pension.
Starting a Family
When you start a family, you to consider how you are going to provide for your family financially. Pensions and insurance can help you meet costs such as education, medical and provide some income for your family in the event of death or disablement.
Education
You need to plan for retirement as you will not to stop working at some point. This will make you lose your regular stream of income. This is where a pension comes in. It is able to replace your income within a certain proportion. This depends on various factors which include period of contribution to the scheme, amount contributed to the scheme overtime and returns of the investment.
Health
Health insurance is a contract between you and your insurance company in which you buy a policy and in turn, the insurer commits to pay part of your medical costs (depends on a pre-determined amount) when you get sick or involved in an accident.
Retirement
You need to plan for retirement as you will not to stop working at some point. This will make you lose your regular stream of income. This is where a pension comes in. It is able to replace your income within a certain proportion. This depends on various factors which include period of contribution to the scheme, amount contributed to the scheme overtime and returns of the investment.
Death
The death of a member of the family is one of the most difficult life events. However, the financial burden can become lighter for your family if you had an insurance policy or a pension. Funeral expenses can be taken up by an insurance company and so can your children’s education if you had an insurance cover for them. Further, your family may also be entitled to a lumpsum of your pension.