Bima Bora

In the past, children were expected to cater for their parents once they reached old age, in addition, having many children was considered a source of pride, it was a norm that these children would grow to offer support and security to their parents. This belief and way of life is less reliable in today’s world for some of the reasons that will be discussed below. In this post, we explain why you should not rely on your children for retirement, and how to regain control over your post-work income using pension and retirement solutions The risk of relying on children 1. Financial pressure  Nowadays, children also have own financial problems, for example, paying for education, to buy homes, going abroad and for their own families. They probably might not afford to give such a support to their parents as was offered by the previous generation. 2. Changing Family Structures Families are listed and extended family members are migrating away from rural areas in the search of favorable em...

Noah's Ark The story of Noah and the Ark can be viewed as a symbolic representation of the very essence of life insurance: concerns against the unknown in life. God told Noah to construct an ark to rescue himself, his wife and family and every pair of animal from a flood that would destroy all the world’s life. Though Noah did not know when the flood would occur or how it was going to happen, he built the ark. In this context the ark is the first ‘insurance policy’ Here’s how the story aligns with the principles of life insurance: 1. Preparedness for the Unknown Just as Noah had to construct the ark for a flood no one could imagine, life insurance is preparation for something no one can anticipate. No one can predict when something bad will happen – it could be an injury, sickness, or even a death, however, life insurance enables us prepare for these unfortunate circumstances as much as is possible. 2. Protection against catastrophic events  It may be recalled that the ark was buil...

It is quite rational to think that one’s life is insured in heaven, but life insurance on the earth has quite a different function – It’s not being negative or wishing for something bad to happen but preparing for the unforeseen circumstances that can take place in the world. As with other aspects in life (purchases such as a home, a car or education) there is preparation through buying life insurance to ensure that people who rely on us are not left financially vulnerable in case of any tragedy befalling us. Taking life insurance is a way towards ensuring that our loved ones are taken care of at our expense. It’s love and an act of courtesy. It is not about preference for death but keeping an eye on the financial burden if anything happens. It's like an umbrella, it can't stop the rain but will shield you from getting soaked. Insurance doesn't prevent life's unnecessities but will provide protection when it happens. It offers a peace of mind, you don't know when a ...

Insurance and investments refer to part of managing your financial future, but they have different functions. Here’s how they differ: 1. Purpose • Insurance is made to cover you or your family members against any kind of risk that may lead to a financial loss. It’s about controlling the unpredictable, such as an injury, sickness, or even death. Insurance makes it possible that if anything happens or anyone is involved in an accident you have the backup of an insurance company to fund the eventuality. • Investments on the other hand are used with the aim of achieving an expansion of your pool of own funds. The objective is to develop wealth through the generation of returns (stocks, bonds,real estates) which will grow the initial amount of money for future needs like retirement, purchasing of a home and business. 2. Risk • Insurance is all about minimizing risk. You pay regular premiums so that if something bad happens, it doesn’t have to be so expensive. • Investments include risk bear...

Insurance offered by your employer, for instance, group life or health schemes, come with an employee’s contract. Usually, the coverage is available while working in the position, but if you quit, are fired or get laid off, the coverage ends. This becomes a huge risk if for instance, you are earning a living from your job and you get diagnosed with a life threatening disease such as cancer.   Here’s how it affects you:   1. Loss of Coverage: Once you are jobless, the group life policy ceases and you are without insurance protection at the time when you may need it most.   2. Difficulty Getting New Insurance: If you are diagnosed with a critical illness, it becomes difficult, or you may be denied individual life or health insurance or have to pay an arm and a leg for it.   3. Financial Strain: Without insurance, all costs that are incurred in treating you or paying for bills, go directly to your pocket which is always unfavorable for you. ...