What most people think about life insurance?
It’s called life insurance not death insurance
MANY people normally react negatively when they hear about Life Insurance. Is this because having life insurance is like signing your very own “last will and testament” or is it because of the morbid idea that your family will only get a significant amount of money upon your demise? Or maybe one sees it as cost, an additional expense and doesn’t really appreciate the value of having one? Are these things facts about life insurance or just misconceptions? Or perhaps just an excuse?
“I’m too young, I’m healthy, I’m not gonna get sick or die soon…”
“Life Insurance is the only necessity that you can purchase today when you do not need it and something that you cannot purchase in the future when you need it the most.” This may be true, but did you know the perfect time to purchase a life-insurance policy is when you’re young and healthy because life insurance is cheaper and you can easily get your application approved. When you’re too old or too sick, even if you have the money, life insurance will not be available. It’s a harsh reality but true.
“Life insurance is expensive, I don’t have the budget”
“You can put a price tag to any item you have, but you cannot put a price to the “peace of mind” of having life-insurance cover, that whatever happens, your family will be taken care of.” How much is that latest smart phone you just bought? How about your laptop or tablet? How much do you pend shopping for new bags, shoes or clothes?
Did you know that you only need to save a fraction of the cost of these items and you can already be protected significantly? You don’t believe me? Think about this, can you save P150 a day? That’s just giving up a cup of coffee from your favorite coffee shop. If you can, then you’ll be able to save P4,500 a month, that’s P54,000 a year. Trust me, this amount can already buy you a significant amount of life insurance cover.
“I don’t like life insurance, the money will only be provided when I die”
It’s called life insurance not death insurance.” Over the years, life insurance companies also developed products that have “living benefits.”
These are benefits that you can actually use when you’re still alive. Imagine if you have savings amounting to a million pesos, then you suddenly you get hospitalized because of a critical illness, you use your savings for your treatment, for your hospital bills and for your medication. You’ll be alive, but you also lose your savings in the process. Now think about this, what if you can pay for your medical bills, and still keep your savings intact, wouldn’t that be better? There are life-insurance plans in the market that gives you additional benefits and coverage for hospitalization, disabilities and even critical illnesses.
And what’s great about this is that when you don’t use these benefits and your policy remains in force, over the years, you can still have a significant amount which you can use upon your retirement.
“I don’t see the need for life insurance”
“Life is a big ‘if’. Either ‘if’ we die too soon or ‘if’ we live too long, either way, having a life-insurance policy can be a great thing to have during these times.”
As long as you’re healthy, earning a living and able to continuously save, then probably you won’t need any life insurance. But how sure are you that you’ll be forever healthy or for that matter, are you sure you’ll be forever alive? Will we ever know? Never! But being prepared never hurt anyone.
What life insurance offers is certainty through life’s uncertainties. It will serve as your “Plan B,” making sure that all your aspirations and dreams, not only for yourself, but also for your family will carry on, no matter what happens. Isn’t that what you need? There’s always a need for life insurance, in fact it is one of the key foundation in financial planning. If you don’t have a policy yet, I strongly suggest that you talk to a life-insurance representative. Keep in mind your life insurance policy is at its best when you are at your worst.
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Carlo Verano is a Registered Financial Planner of RFP Philippines. He is a Training Services Support Assistance and Regional Trainer of The Insular Life Assurance Company, Ltd.
Source: http://www.businessmirror.com.ph/index.php/en/business/banking-finance/33139-what-most-people-think-about-life-insurance
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