In the present, we all know that some people are not yet financially literate enough to think of the things that they MUST have. They often live within their budget, and their savings directly go to their ATM. They may keep some in their piggy bank but just like any other savings, it’s easily use up by certain financial challenges that they face.
People define security in different ways. Some may think that once they have the means, they can always be ready in the future. The sad part here is oftentimes the rest took “Financial Security” for granted.
Have you ever thought why rich people are getting richer while the rest are still struggling in their financials? The answer in that question is FINANCIAL LITERACY.
They know a lot of things about money.
Where to put it,
the best way it can grow
and
when it can be doubled.
Due to this financial literacy gap between classes, people who lives within their budget are skeptical to take risk if it involves money. Little did they know is it needs only a minute of their day to understand what Life Insurance is.
Now to give you a little bit of information about life insurance, here are some details that you can review:
Life Insurance is a type of long-term savings, which compensate the beneficiaries once that Insured person dies (Death Benefit). The beneficiaries are the one designated by the insured person personally. The percentage of the insured person death benefit to the beneficiaries is also decided by him/her.
Anyone who wish to be secured can have their own life insurance. Younger people with no health problems can easily avail it but for those adults who wish to have one but with an underlying health conditions, some company will require a health background check so they’ll know the best life insurance plan for them.
With this information, you can conclude that getting an insurance is very ideal to get if you’re younger. Even though you still have a choice to get one once you are adult, instance is you need to pay a higher amount of premiums since you’re already prone in some health risk.
In getting an insurance, you need to undergo steps before you can avail one. This involves seminar to know your priorities and counselling for them to identify your capabilities to pay.
It may look like everything is a waste of time but doing these steps is very essential to know on what you’re engaging with. Like what Mr. Warren Buffet always say,
So, it’s better to take that opportunity to ASK questions and CLEAR every worry that you have before having your life insurance.
Other than seminars and counseling, you can also choose from payment options that you’re comfortable to do so, such as:
In terms of amount, it will range around PHP1200-PHP5000 monthly depending on the result of your counseling and your capability to pay. You can also choose if you wanted to lower the amount or the opposite one. Like what I mentioned above, everything depends on you so you don’t need to worry about someone who will push you to pay.
The decision will be entirely on you.
In the Philippines, we have a lot of insurance companies that you can choose from. You can simply visit their website to know what they’re offering that you think is suitable for your demands.
Here are the Top 7 Insurance Company as of 2021
(Based on Net Income)
SOURCE: The Wise Guy PH
I had mentioned in my previous blog some of the benefits of life insurance. You can check out this blog about some choices you can do after reaching your emergency fund.
Some of the benefits I mentioned in this blog are:
Most especially in this pandemic, we conclude that anything may happen in the future so it’s very ideal to be financially ready as soon as possible. Once you start paying your premiums, you can assure that your family will be safe no matter what happen to you. You just need to stick with the payments and make sure that you’ll be able to pay it on time.
Some life insurance requires a lifetime payment while others normally have 10 years holding period which you must complete.
Holding period is a time given for your money to grow. By determining the time, it means that the investor is inhibits to withdraw the invested amount to make sure that the higher return will take place after the holding period.
Life insurance is a long-term financial goal. If you are not patient enough to wait for a specific period, then this investment is not for you. To have a lifetime protection, of course you need to keep the plan going. If you choose to withdraw everything, it also means that your life insurance benefits will also stop.
If you choose to pull out your investment within the holding period, you can expect that your investment will not be the same. This is due to the charges incur during that period.
There’s also a probation period for your insurance, so within that period you can’t really withdraw from it. That period normally will last 3-6 months depend on what life insurance plan you choose.
So before you engage in having an insurance, ask yourself first on what goal you wanted to achieve. Is it a long-term goal, medium term goal, or a short-term goal? Take the opportunity to ask your financial advisor so that you’re sure enough before getting your own life insurance.
Insurance is not only for the rich ones. All of us has an access to have one if you really want to consider it. It’s only a matter of deciding which financial goal you need to prioritize and everything will be ready in front of you.
If you’re still skeptical to get a life insurance, this is your cue to have one. The more you feel secured, the more you’ll live your life to the fullest. Don’t let your worries keeps you on doing something that is very important.
Working employee wherein blogging became my side hobby.
Creator of Living Her Own Life which aims to touch people’s heart and inspire them to achieve their own goals in life.
Writing has been my passion for almost 15 years. Last 2020, I made my very own website where I can share all of my thoughts and stories in life.