Insurance and Your Financial Plans

Financial planning means managing your money to meet your goals. This includes tracking your income, expenses, assets, and liabilities and investing in different investment vehicles to meet your goals. Inflation has caused inflationary pressures and rising costs; therefore, it’s no surprise that we say insurance is inevitable.

As a first step toward financial security, you should create a plan. The first step is to identify your goals, estimate how much money you’ll need to achieve them, and then decide how to get them. Next comes the fun part: choosing among the many investment options available for those Shillings. But in all your planning, don’t forget the importance of insurance. Shielding your investments is a crucial part of future financial stability. Not many people consider insurance a viable option. However, this thinking pattern can lead you through a dark path. 

 Insurance like underwear and jogging shoes is essential in any financial portfolio. Here are some reasons why:

Insurance Has Got Your Back

 Insurance protects you from financial devastation if an unforeseen calamity such as a house fire or a hospitalization. Unexpected events such as house fires and medical bills could drag your financial plan back decades. It is a good idea to hold all the cards in your hands by giving yourself a way out.

Financial Immortality

Life is uncertain. You never know when an emergency could strike, and it is good to know that your finances are covered if something happens. Like a security blanket for your finances, insurance helps you plan for the future and meet your long-term goals. It is reassuring to know that your insurance policy has you covered in the event of unforeseen circumstances.

Cover Your Angles

 As the saying goes, an ounce of prevention is worth a pound of cure. You can choose to protect yourself from different risks by purchasing insurance plans. A life insurance policy will cover the risk of your premature death, while a health insurance policy will cover medical emergencies. You can also purchase motor insurance plans to cover the risk of road accidents or theft of your car—and travel insurance plans to cover trip-related contingencies.


Insurance is a financial safety net, protecting you against unforeseen accidents and calamities. This action gives you peace of mind knowing your savings are safe during emergencies.

Choice of Insurance Policy

The choice of insurance policies depends on you. You should assess the financial risks you face and then buy suitable plans to cover such risks. But some insurance plans are universally relevant and demand a place in every person’s portfolio. Here are some basic insurance policies to get you started.

Term insurance

Term insurance is your basic, stripped-down life insurance policy. It covers you in the case of premature death—you die during the tenure of the policy, and your family gets the money. This is important because death is uncertain and could happen at any time, which would cause your family to suffer financially.

Health insurance

Health insurance plans are relevant because of the incidence of medical contingencies and the coverage that these plans provide. If you suffer an illness or are injured in an accident and require hospitalization, a health plan covers your medical bills.

Motor insurance

A motor insurance policy is like a security blanket for your car. Whether you’re driving a two-wheeler or a four-wheeler, it is essential to carry one of these policies. These plans protect you financially if you hurt someone else or damage their property. If you opt for comprehensive plans, you’ll also be covered in case of theft or damage to your vehicle. These three policies are an absolute necessity for anyone who owns a car—don’t forget to include them in your financial portfolio!


Planning your portfolio is like building a house. You cannot build a secure house without first laying a strong foundation. Similarly, you cannot plan your investments without first taking care of the basics. Insurance is the insurance for your financial planning needs; it lays the foundation of secured financial planning, immune to life’s unexpected shocks.

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