The love month ain't over yet, and so I thought of writing this timely post. Besides, love does not only happen during February; but every single day, for the rest of our lives. It does not only mean love for a significant other, but love for parents, siblings and children as well. Okay, enough of the sweet stuff now. Let's get to the point.
Almost everyone in our family has insurance -- my husband, myself, our two kids, my brothers, and my nephew -- everyone except our parents aged 62 and 72. Why? My father can no longer apply for insurance because of his age. Valid issue ages is up to 70 only. On the other hand, my mother can still apply, but it will be very expensive, again, because of her age. Last time I checked, her premium would have to be Php80,000/year, to have a Php400,000 life insurance benefit with investment through a VUL.
My mother is no longer working, meaning no one depends on her financially. She is also in her 60s so no need to "prepare" for retirement as she is already in that stage. Practicality speaking, getting her a VUL (insurance + investment) wouldn't make sense since it costs that much. I know she would just tell me to save that money for other future expenses -- same words she said when I got her an HMO.
And then shift happens. Why?
Insular Life, the first and largest Filipino insurance company, offers this new product called Solid Cover. It is a peso-denominated, regular pay, investment-linked insurance product that offers maximum protection for as low as Php55 per day or Php20,000 per year. It also provides a 10 year guaranteed coverage, and living benefit to cover lifestyle expenses of family bonding expenses in the future.
A couple of weeks ago, I told my mother about Solid Cover. For only Php20,000 per year, she can have the same Php400,000 life insurance plus a little investment. Actually, our conversation prompted me to write this blog post. Also, it felt weird talking about life insurance and death planning with someone you love.
I told her that the insurance money may be used for the final expenses, so that it may not dig a hole from our pockets or worse case, ask money from relatives. My mother replied, "Di ko na kailangan kumuha ng insurance. Kasama naman ako sa HMO ng Kuya mo at kilala ko naman ung sa Funeraria."
Well, yes. But, what if my brother's current employer changes their health benefits? Or what if my brother moves to another company with a different health package? Or what if my brother is no longer employed? And what if my mother's friend from the funeral parlor is not there anymore? Or he/she may know my mother but not us? Your life insurance policy addresses ALL of these what ifs.
But my mother being persistent with what she believes in, she still said NO. But you know what made her say YES and eventually asked where to sign for the application?
I told her, "Pamana mo sa amin yun." Php400,000 may not be much considering inflation and all, but I realized that parents would still want to leave a legacy for their children -- and a life insurance policy can also do that for you. It is something that my mother doesn't have to do as taking care of us all these years is already so much of a legacy, but it is something that she wants to do.
And honestly, that conversation with her struck a chord in my heart. I felt her love in a totally different way. And indeed, LIFE INSURANCE is a GIFT of LOVE. As for me, my insurance policies is an assurance that the people I love will be well-taken cared of financially in case something happens to me.
In the Philippines, only 15% of those who are working are insured. Why? Because we are not comfortable talking about death. But reality is, it will happen as no one gets out of this world alive -- so we might as well plan for that, too.
Imagine how will your family's life look like in case you will no longer be in the picture because of what ifs? What if you become disabled after an accident involving a drunk driver from the other side of the road? What if you were diagnosed with a critical illness because of your family's medical history? What if untimely and premature death occurs?
If you do not have a life insurance policy as your safety net, will your wife need to work again to make ends meet? Will your kids need to transfer from a private to a public school because they can no longer afford it? Will your eldest son or daughter stop from college to take on your role as a breadwinner? What if you still have very young kids?
If you love your family, which I am very sure you do, I encourage you to talk to your InLife Financial Advisor TODAY. And if you are not comfortable talking about it, you can at least send me an email instead at financialplanningforpinoys@gmail.com. I would love to hear you out!
P.S. My goal is to spread financial literacy as far as the Internet can. Kindly help with that through sharing this post. Thank you very much!
