You Jump, I Jump
Updated: Apr 8, 2020
Remember the Oscar award-winning movie Titanic that was released in1997? A very popular film that got thousands of people watching it over and over and over.
You can never forget the familiar tune "Near... Far... Wherever you are" and the romantic script: "You jump, I jump".
Most of you would know Titanic as a romance film and indeed it is a love story of the main characters Jack and Rose. But do you know Titanic is also an Insurance story?
There are 2,200 passengers on board Titanic and when the ship sideswiped the iceberg during its maiden voyage, disaster happened and it sank.
1,500 passengers did not survive, including Jack. Aww...
Why did so many passengers not survive?
Here' the revelation for you. Titanic was believed to be the biggest ship which could carry up to 3,300 people at full capacity. Because of its believe to be practically unsinkable, there were only 20 lifeboats onboard, where during emergency, it could only accommodate one-third the passengers.
So there goes 70% of the passengers did not survive when the disaster happened because there was an obvious lack of lifeboats.
I came across a couple of wealthy business owners and affluent individuals who gave me a similar responds that they are rich and don't need any life insurance. They will be self-sufficient when crisis strikes them. With reference to the Titanic incident, what they think is not true.
"The bigger your Titanic, the more lifeboats you will
need to deploy."
In fact, the bigger your business (Titanic) is or the more assets/ dependents you have on hand, the more insurance (lifeboats) you will need to deploy. Insurance, besides being a tool to protect your wealth, also brings cash-flow to your business, and release financial burden on your surviving partner/ spouse. Wealth and insurance should not be treated as mutually exclusive.
Do make sure you have adequate lifeboats in place.