Myth: “I already have savings; I don’t Need Insurance”
I used to believe this too.
During my early days in the insurance Industry, I was surrounded by the policies, plans and financial discussions everyday- yet, ironically, the true importance of insurance never really felt personal to me. Like many others, I thought: “I already save money. Why would I need Insurance?”
In fact, whenever someone asked me, “Do you have insurance?” I would confidently (and sometimes quite bluntly) reply: “No. Why do I need Insurance? I already have savings.”
Looking back, that wasn’t confidence- it was misconception. A Myth that many people still believe in today.
But time has a way of changing perspectives.
As one year passed, and then another, my understanding of insurance began to evolve. Working in the insurance industry exposed me to the real-life situations-unexpected events, financial struggles, and families trying to cope with loss or uncertainty. Slowly, I began to realize that savings alone are not a complete safety net.
Then came a turning point in my life-motherhood.
When I gave birth to my child, everything changes. My financial thinking was no longer just about me; it became about her future, her education, her health, her security. Earlier, I believed my savings would be enough to provide her with the best opportunities. But as she started growing, I began to see reality more clearly.
Quality education comes at a rising cost. Healthcare expenses are unpredictable. And life itself is uncertain.
That’s when it truly hit me-
What if something happens to me? Who will ensure her dreams don’t stop halfway?
This is where insurance stepped in- not just as a savings tool, but as a financial protection plan.
After spending 8 years in the insurance industry, my biggest realization is this:
Savings help you grow your money. Insurance protects your future.
They are not substitutes- they are partners.
Today, I no longer see insurance as an optional expense. I see it as a responsibility- towards myself, and more importantly, towards my family and my child.
Having said that, this is not only about mothers, children or promoting child life insurance. The purpose is simply to encourage readers to break the common myth: “I already have savings, so I don’t need Insurance.”
In reality, life insurance is equally important for every responsible adult- with a various role whether he/she’s is a father, mother, husband, wife, son, daughter/in-law’s or anyone who carries responsibilities for their family. Financial protection matters just as much as financial growth.
Being a mother, I deeply understand the emotional and financial responsibilities carried by a woman -as a wife, mother, daughter, daughter-in-law, employee, employer or caregiver. But at the same time, I can equally understand the silent emotional rollercoaster many adults carry within themselves.
At some point in life, many people quietly ask themselves:
“What will happen to my family after me?”
“Who will repay the loans and liabilities I leave behind?”
“Will my savings alone be enough during crisis?”
And honestly, these are real questions.
Let me share a moment that truly changed my perspectives.
One day, while scrolling through my phone, I came across a real courtroom program broadcast on CNN. An elderly old man aged 70 years was standing before a judge after being fined for breaking the traffic rules. When the judge asked for an explanation, the old man humbly replied that he could not afford to pay heavy fine. But judged further added, traffic rules must be followed. Then the gentleman explained the real reasons behind his action.
He has rushed through traffic to save his 50-year-old son, who had to undergo dialysis every week. And that particular day, his son urgently needed extra blood due to which he tried to reach hospital in time.
Entire courtroom fell silent.
What touched me even more was when the judge replied: it is proud moment for me to hear that you are taking care of your older son. Judged further asked him how he managed all the expenses. Then the old gentleman replied: “Sir, all my savings were already used during my son’s treatment. But thankfully medical expenses are covered by the Insurance.”
For a moment, I paused.
That single statement carried a powerful truth.
Savings can slowly disappear during long term emergencies or unexpected life events. But insurance becomes the financial support system that help families to standby and fight back the difficult situation without losing everything they have built.
That moment further helped me completely set aside the myth: I already have savings, so I don’t need insurance.”
Because the truth is – Life Insurance is not just about saving money. It is a risk protection tool.
And at some point, in life, every possible adult should invest a small portion of their earned penny into protecting the future they are all working so hard to build.
Shristi Shrestha
UW Dept
