Buying insurance will not ensure that all the problems of the deceased are well taken care of. The might be some unforeseen problems after buying the insurance. I had helped some clients to solve the following problems which usually never being thought of by most parents with young children.

Parents with young children normally bought adequate life insurance policy to replace the income loss in case something happens. Usually the father nominates the wife as beneficiary. Meanwhile, mother nominates children as beneficiaries. Most of the time both parents travel together, whether on vacation or just driving to the nearby shopping center. What happen if both parents can’t make it home? Who will get the policy money? A simple nomination of your policy can’t really solve the above problem.

Who shall be the guardian of your child? How do we provide a constant cash flow (example: RM2000/month) to the guardian to pay for the living expenses of our children? Writing a simple will is certainly not the perfect solution for the above situation.

When we are taking care of our children, we make sure they are provided with the best education. We also try our best to make them study hard. We wish that someday they will accomplish Bachelor’s degree, master degree, etc, and earn a good living. How do we ensure all that if we are no longer around anymore? Leaving a lump sum education fund for them can’t really ensure that they will study hard.

In fact, all the above challenges can be overcome with proper arrangement. Moreover, it is so affordable! If you can afford to have a hand phone, I am sure that you can afford this arrangement.

For details on managing the risk of double tragedy, please read this article.


Personal finance author and trainer

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