Opinion – Grain in Grain: Most ignore the importance of this element in financial planning

Financial planning is nothing more than building a route that takes you from where you are today to where you want to be. Making an analogy, it would be as if you were planning a trip from the south to the northeast of Brazil, by land. In this long journey, most Brazilians ignore an essential element.

Note that in planning this trip, some points are fundamental and we are all aware of them.

For example, you need to know exactly where you are leaving and where you want to go. It is also relevant to outline the roads to be followed and the risks involved in each one.

You must have read I write of these factors. Today, I’m going to address an element that, admittedly, most Brazilians ignore.

On the journey between the two extremes, you will cover close to four thousand kilometers. A long way.

Your life journey, too, is long.

On such a long road trip, do you think it would be reasonable to think that something could go wrong?

Do you think it would be appropriate to have protection in the event of a car accident?

Remember, in this analogy, the vehicle is your asset and your family depends on it, as the car will take you where you planned.

We know that life is not a completely smooth road, but it is more like a road full of holes, speed bumps and detours.

We all agree that a car traveling on a road this way is subject to accidents and mechanical problems that can inhibit you and your family from reaching your goal.

Research in the USA, presented by the site bankrate, points out that 54% of Americans have some life insurance. In Brazil, this proportion is significantly lower. According to Fenaprevi, only 17% of Brazilian adults have some life insurance.

I understand that in relation to the American citizen, most Brazilians do not have any conditions to even think about insurance. They are covered by social security, the INSS. So I don’t mean them, but me and you.

Just as a car on the road can break down and compromise your family’s entire trip, the same can happen with us compromising our families’ income.

For this, there are personal accident and disability insurance. To have an idea of ​​the value, insurance with a premium of R$ 1 million for disability due to accident or illness costs less than R$ 129 for a 40-year-old individual.

This is just an example. There are several ways to protect your journey. The choice is customized according to need and desire.

Just as when we plan our trip we think about what can go wrong, in the same way, in financial planning it is important to think about how to protect ourselves and our family if the trip does not go as planned.

Michael Viriato is an investment advisor and founding partner of Investor’s House

(Follow and like De Grão em Grão on social networks. Instagram.)

If you have questions or suggestions for topics that you would like to see commented on here, please feel free to send them by email.