Financial Planning
2026-10-30 3 Min read
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Walk into most conversations about insurance and you will hear a lot of "shoulds". You should buy this cover, you should have that rider, you should not wait any longer. It can all start to feel overwhelming, especially when every plan sounds important. A simple way to cut through the noise is to ask one question about anything you are considering. Is this something I need, or something I want?
The two are not the same, and knowing the difference can help you build a protection plan that actually fits your life, instead of one built on somebody else's checklist.
What counts as a genuine NEED?
If you have people who rely on your income, whether that is a spouse, children or parents, then life cover that would replace your income for them if something happened to you falls firmly into the need category.
The same goes for health cover, since a medical emergency can affect anyone, regardless of age or how careful they are. If you have a home loan or other debt in your name, cover that helps your family manage that liability is also a genuine need, not simply a nice-to-have.
The same goes for health cover, since a medical emergency can affect anyone, regardless of age or how careful they are. If you have a home loan or other debt in your name, cover that helps your family manage that liability is also a genuine need, not simply a nice-to-have.
What often falls into want territory
A want is not a bad thing to have, but it is worth noting for what it is. This might include additional cover that duplicates protection you already have elsewhere, an add-on chosen mainly because a friend or colleague has it, or a plan bought quickly without comparing it to what you already own.
None of this means the cover is useless, only that it should come after your genuine needs are addressed, not before.
None of this means the cover is useless, only that it should come after your genuine needs are addressed, not before.
A simple way to build your priority list
1. Start with what would happen to the people who depend on you if your income stopped tomorrow. This usually points to life cover first.
2. Next, think about what a sudden medical expense would do to your finances. This usually points to health cover.
3. After that, look at any loans or debts in your name, and whether they are protected if something were to happen to you.
4. Only once these are in place is it worth exploring additional riders or plans that go beyond the basics.
5. This order is not a strict rule for everyone, since every household is different, but it gives you a sensible starting point rather than a blank page.
2. Next, think about what a sudden medical expense would do to your finances. This usually points to health cover.
3. After that, look at any loans or debts in your name, and whether they are protected if something were to happen to you.
4. Only once these are in place is it worth exploring additional riders or plans that go beyond the basics.
5. This order is not a strict rule for everyone, since every household is different, but it gives you a sensible starting point rather than a blank page.
Revisiting your list as life changes
Your needs today are not necessarily your needs five years from now. A new job, a marriage, a child, a home loan or ageing parents can all shift what genuinely counts as a need in your life. It helps to treat this list as something you look at again every year or two, rather than a decision you make once and never think about again.
The goal is not to buy everything at once, but to make sure what you do have is actually working for the life you are living, not the life you had when you first bought it.
The goal is not to buy everything at once, but to make sure what you do have is actually working for the life you are living, not the life you had when you first bought it.