The core of every financial plan
There were approximately 6,000,000 economically active citizens in the Czech Republic in 2019. In the same period there were approximately 5,500,000 life insurance contracts. With this information we can say that almost every economically active Czech citizen has some kind of life insurance.
It might be surprising, but only roughly 10% of insured people have functional income coverage. Also, many expats are insured here with an insurance company without knowing that if something happens, the insurance company may not pay them due to various exclusions.
It is very important to think about what "being insured" really means. Most people prefer to cover short-term health issues because there's a higher probability they'll receive something from the insurance company. Unfortunately, they frequently forget about the disastrous effects of less likely but serious health issues which can cause permanent loss of working ability.
Disability comes in different grades, and each grade means a different monthly reduction in income. That missing income could persist for the rest of your life — money that won't be available for decent living, children's education, or a dignified retirement.
Approximately every 15th Czech citizen is on some kind of disability benefit.
People frequently think that if they have "accident insurance" then they are safe. Unfortunately, so-called "accident insurance" covers only a minority of disabilities. Accidents cause disability in only 2–5% of cases. All other disabilities are caused by various kinds of serious illnesses.
My goal is to find out what risks can affect you and prepare a plan for income coverage that is truly dependable. You can be sure that if something really bad happens with your health, at least you won't have to worry about how to pay your monthly expenses.
It is also very important to consider nationality — for foreigners living in the Czech Republic, specific rules apply that can significantly affect insurance payouts.
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