Not so long ago, when people talked about insurance, the image that comes to one’s mind is that of insuring against death or accidents.
There is a good reason for this. The jobs that people used to do were more physically intensive and the best paying jobs used to be the ones that put immense strain on the body, which meant they were risking their health for a good day’s wages. That was a world where the economy was far more labour intensive.
Today, in the information age, many of us don’t work like that anymore. The physical work has been replaced by machines. In fact, the highest paying jobs are not physically demanding but rather, they are mentally and/or emotionally stressful.
Simply put, many of us are being paid to handle stress—stress in the form of deadlines, working long and odd hours or even having continuous information flickering on the screens of our smartphones that require our immediate attention and decisions.
This has affected every area of our lives and most certainly, our financial planning. It has been my observation from working with clients that, while they are able to earn a fairly substantial income, their biggest concern is not being able to do the same work for the next 20, 15 or even 10 years. Gone are the 30-year “iron rice bowl” expectations.