Life insurance is often viewed as an unnecessary expense until a situation arises where it could truly help. Many people only arrange it when taking out a mortgage or starting a family, despite earlier enrollment offering better terms. Financial advisor David Ječmenka shares insights on navigating insurance options in the “Talk About Money” podcast.
For many Czechs, life insurance remains at the bottom of their financial priorities list. According to Ječmenka, it’s more advantageous to start thinking about this safety net earlier – insurance is notably cheaper at a younger age. “The younger you are, the better chance you have of securing insurance under favorable conditions. Once health problems arise, the policy can become expensive or might not be offered at all,” he warns.
Modern insurance policies have evolved beyond just covering worst-case scenarios. “Today’s policies include various benefits, such as discounts for maintaining a healthy lifestyle. Companies are actively encouraging people to take better care of themselves,” explains Ječmenka. He also notes that many people unnecessarily underestimate the importance of financial protection for harder times.
What insurance actually makes sense? Ječmenka emphasizes the importance of coverage for disability, long-term incapacity to work, and serious injuries. “Minor injuries like a broken arm won’t financially devastate you, but losing the ability to work can be a crucial problem,” he cautions. He also advises clients to fully disclose their health condition to insurance companies to avoid potential claim denials.