The first week of October is LIFE INSURANCE AWARENESS WEEK, and with this, I thought of sharing some things you may not know about Life Insurance.
1. Life Insurance cost is cheaper than your favorite signature coffee.
Yes, everytime I tell my friends just how much they are paying for insurance cost, they are in awe. To give you an idea, a healthy individual pays for Php100/month for a Php1M insurance coverage. Yup, just that. And this amount increases as we age as the risk of dying also increases.
2. You will not always be insurable.
Today, one of my client's insurance application was declined. She was willing to pay a Php160,000 annual premium, but unfortunately, she is no longer insurable because her health is already compromised.
For the record, she is my third client in my career as a Financial Planner whose insurance application was declined. The first one was willing to pay Php240,000 annual premium, while the second has a Php200,000 annual premium on the proposal.
This is proof that we may have the money, but we will never be as healthy as we used to be. Unfortunately for these clients, they only realized the value of getting a life insurance when it was already late. I encourage you to apply for life insurance NOW while you are still young and healthy. And that is not just a cliche.
3. Everyone who buys a Life Insurance policy will use it eventually.
Remember how we make purchases and most of them just end as part of the clutter because we don't end up using them at all?
This is what I tell my friends: I like selling Life Insurance because it is the ONLY purchase that will definitely NOT go to waste. Sooner or later, you and/or your beneficiaries will gain from it.
While there is a one in 43 million chance of winning that 800 million jackpot in the 6/58 lotto, there is a 100% chance of claiming proceeds of your Life Insurance policy.
4. You don't have to be dead to benefit from your Life Insurance policy.
A Life Insurance policy is not only synonymous to "death benefit." Your life insurance policy has "living benefits," too.
You can add riders to your life insurance policy which includes disability, hospitalization and dreaded disease coverage. This way, you are completely covered.
Final Word
If people only knew what a life insurance policy can do for them, we will no longer be needing Financial Advisors to offer them. But reality is, most people do not know.
Your Life Insurance policy is for income replacement in the untimely death of a breadwinner. It will also pay off existing loans and other debts. It also makes sure that the kids will finish college. It is also used to pay for the insured's death expenses and estate taxes.
Yes, a single document does all that! And that is PEACE of MIND.
Considering getting a Life Insurance policy? Send me an email at financialplanningforpinoys@gmail.com for adequate Insurance Planning.
