You may have heard how important life insurance is, but just how important is it really?
More often than not, our first foray into insuring ourselves is not an endeavor we actively sought out, but rather it was something sold to us by a friend or a mere acquaintance. In fact, some of us may even remember having reservations and a moment of hesitation before buying life insurance for ourselves. The truth of the matter is that most of us dismiss life insurance as another thing to add to our already long list of expenses. As a result, some of us would not even think of buying it until it is too late. Let us face it; life insurance is not exactly easy to sell, seeing as it compels prospective buyers to face their own mortality. Such a morbid discussion would often deter would-be clients, especially when they are at an age where they feel immortal. Unfortunately, nothing can prepare you for death. It can come knocking anytime, and when that happens, you need to find at least a way to protect your loved ones adequately.
That is what life insurance is for, the protection of your loved ones. To many, buying life insurance is a financial decision, but at the heart of it all, it is an emotional one. After all, most people buy insurance because they love and care about their family and the future. With that said, life insurance should be the first investment you make in life. If you need a little more convincing as to why you should secure your family’s future with life insurance in the Philippines, below are just some of the reasons why it is so important:
1.) To look after your loved ones EVEN after you are gone
In the Philippines, securing the family’s future is a primary concern of any breadwinner. We all look for ways to ensure that our families and their futures are protected, and as such, we work hard to be able to provide them with that. But what happens when you are no longer able to? What would your family have to work with then? With that said, getting yourself life insurance is paramount. Your family is dependent on you–even after you are gone. Whether it is for replacing lost income, paying for your child’s education, or ensuring that you get much-needed financial security, life insurance can save the day for any of your surviving dependents.
2.) It helps you achieve long-term goals
Life insurance is basically an instrument that keeps you invested in the long term. In this regard, it would help you achieve what life goals you may have, such as planning your retirement or buying your forever home. Insurance typically comes with various policies as well ensuring that you have diverse investment options. Be wary, however, and know what you are signing up for. Some products are tied to certain investment products that pay dividends based on their performance. If you wish to have an investment-linked policy, be a little meticulous, and read the fine print. This is so you are aware of the potential risks and returns.
3.) It deals with your debt
Over the course of your lifetime, you will inevitably incur debts for which you would eventually need to pay. Unfortunately, your family will have to deal with the financial liabilities in the event of a crisis. Having yourself secured with life insurance is a way to prepare for this as any outstanding debts you may have–whether that may be a home loan, auto loan, loan on credit cards, and even personal loans–would be adequately taken care of if you buy the appropriate life insurance policy that addresses it.
4.) Life insurance supplements your retirement goals
With the right insurance plan, your retirement savings can last as long as you do. Some insurance policies allow you to have a regular stream of income every month–much like a personal annuity. Essentially, it is pretty much like a pension plan where putting money regularly in a life insurance product allows you to enjoy a steady income every month—even after you retire.
5.) Forced savings
Traditional or unit-liked policies require you to pay a premium each month. Typically, these costs higher than what it costs to insure you. However, you should not worry about where that extra money is going as it is invested and accrues cash value. With that said, you can borrow this very same cash against the policy or choose to sell it or even draw income for it.
6.) It is cheaper when you are younger
Most young people do not think of buying a life insurance policy with their earnings right away, considering most of them are still living off their parents’ money. However, if you have dependents or co-signed a loan with any relative (whether that may be a student loan or home loan), it is imperative that you start considering the benefits of having an insurance policy. Bear in mind that coverage costs are much lower when you are single. Be meticulous about the kind of policy you will be purchasing, however, as insurance agents may sell you policies you do not really need. It is your responsibility, therefore, to do adequate research and approach a financial planner to determine how much insurance you need based on the assets you own. Remember, the earlier you buy your insurance, the better. When you are young, healthy, and have a good family health history, your insurability is at its peak. As a result, you can have the best rates on your life insurance policy.
7.) It affords you peace of mind
Whether we are ready to face the reality of our own mortality, the truth is death is unavoidable. You cannot prepare for it, and there is no way of knowing when it would come. In the event of a tragedy, the very least you can do for your family is to ensure that their financial future is secured. Know that even the smallest policy can already go a long way. Besides, nothing gives you better peace of mind than knowing that you have done whatever you can to help them pull through after you are gone.
