Note: This is Part 7 of a series of blog posts about financial advising. Click here to read all articles in this category.
It’s really unfortunate that there are still a lot of Filipinos who are not yet familiar with insurance. Even more unfortunate is for those who know about insurance, a lot of them see it negatively. They see insurance as just a waste of money because it’s something that they don’t need.
If you love your family and you want to give them a comfortable life even if you pass on, make sure that you read this article. This is also very helpful if you want to live a life knowing that you’re earning money out of helping secure the lives of your fellow Filipinos.
What is Insurance?
It’s a contract (in the form of an insurance policy) that you enter into with an insurance company. The basics of this contract are:
- You will pay premiums regularly for a set period of time.
- You will receive financial protection.
Here’s how it works. You will pay regular premiums. Once you start paying, and you keep your payments up to date, you are ensured protection based on the coverage of the insurance policy.
Yes, insurance is protection. It’s an investment that you make today that can help you and your loved ones later on, especially when you die.
Yes, when you die, and it will happen eventually. We will all die. The question is – who will take care of your family?
If you want to know more, sign up using this form – https://goo.gl/forms/RPQZlaXdqJSJ1Dgx1.
If the basic definition of insurance doesn’t convince you that it’s something that you need, let’s discuss some sample scenarios.
Let’s say that you’re a 40 year old breadwinner of the family. You have 2 kids in school. Your wife is a housewife. Things are good. Your family is living a comfortable life. You get to eat 3 square meals a day. Your kids are in a good school. You live in a great house that you have no problems paying the mortgage for. The needs and wants are provided for.
But then, you die in an accident. What happens then? Who’s going to pay for the mortgage? Who’s paying for the tuition? Where’s your family going to get the money for the basic needs and wants? Suddenly, the comfortable life that they’ve been living comes crashing down.
Add that to the fact that they just lost you and you can just imagine how devastating it is for them.
Let’s say that you have life insurance coverage of PHP 5,000,000. In this unfortunate event, your family is going to get PHP 5,000,000. They can use this money to either:
- Pay for the expenses and get their life going again.
- Pay for the estate tax so they can get the estate that’s rightfully theirs. This helps them get started again.
Let’s say that you have PHP 2,000,000 accident coverage as a rider. Since you died in an accident, your family will get the additional PHP 2,000,000.
Here’s another scenario. Everything’s good, until you were diagnosed with a critical illness. Suddenly, you need to pay for treatments. Unfortunately for you and your family, these treatments can get very expensive.
What if you have critical illness coverage for PHP 2,000,000? Once diagnosed, you will get PHP 2,000,000 that you can use for treatments.
Now, do you understand why insurance is very important? It’s something that you’ll eventually need, so might as well get started right now so you can get protected right away. Remember, death doesn’t usually warn people. It just comes.
Is it Expensive?
In the grand scheme of things, insurance is actually very affordable. There are a lot of products that you can choose from. You can also choose a coverage that you can afford. Besides, you can set aside some of the things that you pay for that you don’t really need so you can afford better insurance.
When should You Start?
The best time to start was yesterday. The next best time is NOW. Don’t fall into the trap of thinking that you don’t have to start today since you’re still young. Remember the accidental death scenario above?
Besides, here are some of the benefits of starting early:
- You can finish the premium payments earlier on in life.
- You still have disposable income.
- You can tap the power of compounding interest.
- You’re young and generally healthier. This means that insurance premiums are more affordable.
Can You Make a Career Out of Helping Protect People with Insurance?
Now that you’ve appreciated the protection that insurance provides, you’re probably thinking of family members and friends who should benefit from it as well. Yes, you can help protect people with insurance. You can actually make a career out of it! If you’re convinced on the importance of insurance just by reading this article, imagine how easier it is to convince people when you’re armed with all the information and resources that you need!
If you have more questions about getting protected with insurance and/or making a career out of helping protect people with insurance, sign up via this form – https://goo.gl/forms/RPQZlaXdqJSJ1Dgx1.
Latest posts by Jay Recinto (see all)
- SM Lipa’s 3-day Sale: Your Summer Shopping List Guide - March 14, 2019
- Splendio Tritus: An Inspiring Band Lipeños can be Proud of - March 5, 2019
- Promil Four i-Shine Talent Camp 7 now in Batangas this Summer - March 1, 2019