Life Insurance: 5 Reasons Why You Should Get One Now

Life insurance, as defined by Investopediais a contract between an insurer and a policyholder in which the insurer guarantees payment of a death benefit to named beneficiaries upon the death of the insured. The insurance company promises a death benefit in consideration of the payment of premium by the insured.

In short, life insurance is an act of love to ensure your living loved ones will still continue the life you let them experience even when you’re gone.

Based on the research of Sun Life Financial Philippines Inc. (SLFP), only 16% of middle- to upper-income Filipinos actually owned life insurance products. Even though they are aware of the product, it is just not on top of their priority list because of three excuses: a) too expensive, b) lack of trust and c) morbidity.

READ: Insurance or Investment: What Should I Get First?

ALSO READ: Seven Money-Saving Tips for Minimum Wage Earners

In this article, I’ll share with you the 5 reasons why buying life insurance can be a life-changing decision you’ll ever make and definitely leaves a legacy to your family.

1. Life insurance lets you buy time.

Acquiring life insurance doesn’t always mean getting it when you just need it. Sometimes, getting a life insurance while you are earning enough, has no dependents yet, very young and healthy is better rather than getting it when you are already settled, just started a family, or worse, already suffering from a bad illness.

It is not only cost-effective but it also lessens the process of approval for your application.

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2. It avoids your family from suffering financial loss.

A loss of a loved one, especially of a breadwinner of the family not only hurts you emotionally. It also gives you worries about how to start and spend the rest of your life without the family’s main provider. It makes you think of your children and how they are gonna be in the future. That’s why preparing for life’s uncertainties ahead of time minimize the risk of suffering from financial losses like these.

3. It provides financial security.

Life insurance is an income replacement tool that can sustain your family’s daily living expenses including food and education of your kids in the case of death. Your living loved ones will receive a guaranteed amount that can definitely help them get back on their feet, stand up and continue living the life even when you’re not around anymore.

4. It gives you peace of mind.

Life insurance gives you peace of mind that your family won’t suffer financial burden even when God calls you home today.  You are assured that your family’s standard of living remains intact, they won’t go hungry, and most of all, your kids will still be able to continue their education.

5. Life insurance can give you a fund that you can use in the future.

Nowadays, most insurance companies offer cash values in the form of investment when acquiring a life insurance plan. This plan is popular among millennials as it gives them more options and flexibility on how they can manage it. Insurance companies continue to develop customized plans that will suit their client’s needs. Today, not only your beneficiaries will enjoy the benefits of a life insurance but most of all, it’s you.

 

I hope that these 5 reasons have convinced you of getting a life insurance as early as possible. Getting interested is not enough but taking action is. The more you delay your plan of getting protected, the more you lose time. Remember, time is our most valuable asset. We need to take advantage of it while we still have more.

Find an insurance advisor whom you can trust your life plans and you’ll surely have a #brighter life!

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Christine Caranyagan

Licensed Financial Advisor
Christine Caranyagan is a millennial Licensed Financial Advisor who graduated from the Polytechnic University of the Philippines and a degree holder of Bachelor in Banking and Finance. She's been in the financial industry for more than 4 years now and been aiming to spread financial literacy thru her blog http://mymoneywisetips.com/ to help more Filipino people achieve financial freedom.

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