Life insurance is probably one of those financial products you might not want to spend your hard-earned money on. Sometimes, we believe fate dictates what’s going to happen, and we end up enduring what is there to suffer – physically and financially. We say “bahala na” as a means of accepting what lies ahead of us. However, it is time to consider how life insurance could protect us against the ill-effects of accidents and untoward incidents. With several life insurance providers already here in the Philippines, it is about time that we consider it as an option to secure not just our fate but also our loved ones.
Why should you buy a life insurance plan?
Life goes on, and as we get older, raise kids, start a business and tread that road to aging, we only wish the best for our spouse, parents, and children. We don’t want to leave them behind financially drained. Life insurance secures our loved ones if something unpleasant happens to us. The money we pay for the plan today will provide us with peace of mind knowing that our loved ones will be monetarily sound.
When is the right time to get insured?
Getting a life insurance plan requires no age. You can be insured as early as the time when you were born into this world. In reality, the older you get, the pricier life insurance policies are. Younger people are entitled to more affordable premiums compared to older people. However, because life insurance is income-dependent, most people take out a plan when they’re around 20-30 years old. This age range is considered as the earning age when one becomes capable of paying for the premiums.
Here are a few conditions to know the right time to buy life insurance plans:
1. On or before you reach 30
Life insurance plans are generally age-banded, making it more expensive as you grow older. At 30, you are at your life’s peak – probably employed as one of your company’s mid-senior employees or have gotten a business that’s been running for a while now. At 30, you are beginning to ponder about life choices, including getting married or having children. You begin to decide which direction to choose. Securing your life at this age prepares you for the worse to come, especially when medical conditions start to develop.
2. When you start to have a family
The responsibilities of a married life go beyond raising kids and providing for the family at the moment. Planning your children’s future includes protecting them against financial problems when something terrible happens to you. Life insurance premiums make sure that your loved ones get some financial help should you lose your job, or should you suffer from health problems. It will significantly help if you plan for your life insurance before your first child is born. You invest in a premium way before you start spending for diapers.
3. When you have a secure job
In the Philippines, it takes six months before private companies secure your employment. However, credit institutions consider job security if you have been working in the company for two years already. Having a guaranteed job does not only open opportunities for you to invest and pay off debts but also for you to ensure a brighter future for your family. Having a job that pays enough for your needs and for you to support your family is a good sign that it is time to pay for that life insurance plan.
4. When you’ve got assets and savings
Whether it’s a piece of land, a condo unit or a car, accumulating assets shows how smart you are in handling your finances. Some insurance policies pay off your unpaid mortgages as part of the coverage. On the other hand, borrowing money to pay off insurance premiums may be unwise. Plan your finances right, start saving, consider investing, and then buy a life insurance policy you could afford.
What can life insurance do for you?
Life insurance is a form of investment that could protect you and your family against financial woes as you age. Getting covered with a life insurance policy lets you secure your loved ones primarily if they rely on you financially. Death is unpredicted, and when this time comes, your family would no longer worry about your medical and burial expenses. Depending on the coverage you choose, your burial pre-payment ensures everything is paid off and in place after you die.
Debts will also no longer be a problem for your spouse or children. Life insurance makes it possible for you to take care of financial accountabilities, even when you are no longer around. Some policies could also help you with college planning, diversifying investments, business planning, building of cash value and plan for your retirement.
All these and more could ensure your peace of mind knowing that you’ve prepaid for the worse and leave your family with the best possible assistance they could get from your chosen policy.
As years pass, more and, more Filipinos are buying life insurance plans. Although a few remain to be unwelcoming of it as a beneficial investment, buying one wouldn’t hurt your finances much. Check out the best life insurance plans and talk to a qualified agent to understand which coverage best suits you.
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