Mr. Mehta was very happy with his job, his family and life in general. He was very particular with his finances. His 8 year old daughter and 9 year old son were doing well in one of the best schools in India and his wife had the financial comfort she wanted. However, Mr. Mehta will concur that one can never tell when fate will tarnish a pretty picture. He suddenly suffered a heart attack, with a few complications, and was admitted to the hospital. Three weeks in the ICU and an angiography and angioplasty struck him with a serious financial blow. His modest medical insurance covered some of his expenses but he had to dip into his savings for the rest. He thought his current financial plan was solid, but he was wrong. What if the next time his medical expenses are even higher? What about the money he has to keep aside for his daughter’s wedding, or his son’s higher studies? What if he doesn’t pull through the next time? Who will take care of his family and support them financially? Another disaster like this will destroy his long term savings plans.
That was it! He had to re-assess his financial structure. Statistics showed him that if he saved a little money every month in a life insurance policy he would be in an even better position to deal with any unforeseen setbacks in the future. His family will have financial security if he isn’t lucky enough to survive the next time.
He also decided to take into consideration the expenses for his children’s higher studies and marriage. Mr. Mehta was thinking very clearly in the long term now.
Although we don’t want to think of these situations, preparing for them with the right financial planning will only help our long term goals. Mr. Mehta realised this the hard way. Luckily, we have the chance to learn from his mistake and better prepare ourselves from now for an uncertain future.