Beginners Guide to Life Insurance 2019

In recent years, the financially literate population in the Philippines has drastically improved. But there are still many newbies in the life insurance world. There are still many people who ask “Why life insurance?”, many would argue that they have savings accounts in their respective banks. Why would they even nice a life insurance policy?

The most obvious answer would be that life insurance would be for monetary benefits. However, there are many more lesser-known benefits that life insurance can offer. Knowing these benefits would benefit the people who are new to investing in life insurance.

Retirement fund. Many people don’t realize that having a life insurance policy is a way to make sure that you have something set aside for your retirement. Many Filipinos rely on SSS or GSIS, but then that is not nearly enough to cover all the expenses when you will be retired.

The retirement benefit of a life insurance policy will keep you from financial trouble, and it will also be useful so that you will not have to be asking for funds or support from your loved ones. 

Savings. Having savings in the bank is one thing, but a life insurance policy would be another form of savings. The cash benefit that would be included in some life insurance packages would be able to earn much more interest than if that amount was in a bank.

You will be able to gain access to the amount that has been accumulated after a certain amount of time, and you will be able to withdraw against this amount for any emergencies or when you will be in sudden need of cash.

Protection for the policyholder’s family. Many people do not realize that a life insurance policy would help safeguard the financial security of the policyholder’s family.

In case of the event of sudden death or permanent disability of the policyholder, there will be a cash benefit given to the beneficiaries of the policy. This will be given to make up for the income that was lost. This will be the replacement of the funds that the family members or beneficiaries were receiving from the policyholder. 

Companies are stable. Many beginners think about some negative events that have happened in the past with insurance investment. A certain college insurance company that went bankrupt in the past has tainted the memories of many Filipinos, and that is part of the reason why many are hesitant to invest.

But many people do not realize that the insurance providers of today are very stable. They will not go bankrupt and they will take care of your money well, even invest it for you to help the amount grow before the time comes for the amount to be given back to you.

This all brings us back to the original question. Why life insurance? Investing in life insurance is the only way to put money toward the future of your family. If you invest your money in stocks, or a business, there is a chance that the money might go to waste, because there is always a risk in those things. However, with life insurance, there is very minimal risk, and you will be sure that the money will be set aside for you and your family in case of emergencies.

In short, if you start investing in life insurance in 2019, you will be able to set your future in stone. For an affordable amount each time you pay, you will be able to give yourself peace of mind, a great investment as well as a bigger savings amount for you and your family.