The unpredictable Needs should always be addressed first as they can happen any time. Buying a liquid for short term cash flows. Taking a disability or critical illness insurance policy. The first step in building a financial plan is to make a provision for any emergency need. These emergencies could be an accident, illness or unemployment.
Death is a certain events but it is also an unpredictable events.
To protect dependents from the unpredictability of death, life insurance is a must. Predictable needs are capital appreciation or investment planning. The other important predictable need is saving for retirement. Predictable needs also include saving for a house, children's education and children's marriage, or other special needs. When you retire, you should have a pension plan that pays atleast two thirds of your pre-retirement income, every month.