I Was Nervous That My Car Insurance Was Expiring. I Hope We Feel That About Life Insurance, Too.

I know that my car was delivered to me last August 7, 2018.

I know that its insurance was valid until August 3, 2019.

I may not know where I got all the minor scratches on almost all of its sides, which to me doesn't matter, but I have memorized the details above.

And on the third week of July, I was already coordinating the renewal of my car insurance with my agent. 

Why?

First, still being on loan, that is a requirement.

Second, imagine going out of the house, being behind the wheel, with or without passengers who are usually family, knowing that anything can happen on the road, and not having car insurance. 

Imagine the hassle and the cost that may entail. It was an uncomfortable feeling for me.

The same feeling I had knowing that my driver's license was expiring back in June, which made me renew before my birthday.

For my car's first year, I had an insurance claim

I am a safe driver. And I am a slow driver. I think this is the compliment I hear from my mother the most! (Thank you, Nay. I love you.)

But still, I had an insurance claim.

Luckily, it was not due to an accident I met on the road; but it was an accident which occurred while my car was parked, doing absolutely nothing, one Saturday evening.

We live in a safe neighborhood. That is as far as I know, since I only park outside of our house for the past ten years or so. But one night, we heard boys shouting as if there's a fight. For safety purposes, my family and I opted to stay inside the house.

The next day, while my father was doing his daily morning routine of cleaning outside, he saw a big dent on my car's rear door. Apparently, the kids threw rocks at each other and hit my car. I was thankful that it was just a dent and not a broken window. Why? I drive my kids to school everyday. I will not be able to do that with a broken window. But with a dent, it's fine. No big deal.

I asked for an estimate for the damage from the car company and it was close to Php27,000! Imagine if I do not have car insurance. That would have been  Php27,000 out of my hard earned savings. Worse, it meant paying for something which was not my fault!

Thank God for insurance!

Now, imagine going out of your house, for work or for leisure, knowing that anything can happen, and not have LIFE INSURANCE.

Actually, you don't even have to go outside. Many people die in their sleep. (Forgive my morbidity.)

But my point is, everyday is a risk. 

There is risk when you cross the road.

There is risk while you patiently fall in line at the MRT station, or while you drive on your way to work.

There is risk of you being critically ill.

There is risk of your company or employer going bankrupt and you losing your job, no matter how secure it may seem to be. Believe me, there is no such thing as job security. I have seen competent and tenured employees lose their jobs overnight. 

And in any of these situations -- accident, critical illness, loss of job, death -- can cause your financial situation to fall like a house of cards. 

The truth is, majority of us are walking through a financial tightrope in our daily lives, whether we see it or not. Many of us are just one unexpected bad event away from a catastrophe, and not all of us have rich relatives who can rescue us in a pinch. I have rich relatives but I do not want them to carry the financial burden of something they have absolutely nothing to do with, which was how I felt if I had to pay for the Php27,000 car damage.

And imagine the stress in your life caused by these things that you cannot control.

And this is where life insurance comes in. 

Simply put, insurance is risk transfer. 

The insurance company, like Insular Life which I proudly represent, takes the risk on my behalf. 

If I meet an accident, they pay.

If I get disabled, partially or totally unable to work, they pay.

If I become critically ill, they pay for my treatment and income replacement.

If I retire, they pay.

If I die, they pay my chosen beneficiaries.

Best part? Everything is TAX FREE.

And believe it or not, the amount which they will be paying me or my family is not small. It costs millions of pesos. I encourage you to get as much insurance as you can because I have never heard anyone complain about receiving so much money from insurance. Have you?

And the premium that I am currently paying is only a fraction of the value I am getting. I may not have any claims yet, but simply living every single day free from stress is already worth it. 

Ironically, car insurance is more expensive than life insurance -- and yet, more people are willing to pay

On its first year, I paid Php31,000 for my car insurance at its Php988,000 value.

A year after, I paid Php23,000 for my car insurance at its Php889,000 value.

In one year, my car depreciated that much; but still, I was willing to pay that price for insurance.

And if I do not have a claim within that year, my insurance premium simply goes down the drain. 

But that is okay. No complains. 

But when it comes to life insurance, your Php30,000 for one year can give you as much as Php3M coverage, depending on your age and health.
And unlike car insurance, if no claim was made within the year, a part of the premiums you paid accumulates and grows as your future funds, and is also added to the insurance coverage. 

This means that the longer you pay, the bigger future fund you get, and the more insurance money you leave for your family.

Please stop asking for the minimum premium.

Because like a car, you would want to consider yourself as a Land Cruiser and not just a Wigo. And Land Cruisers don't ask for the minimum coverage, because they know that they deserve the highest possible coverage instead.

As a matter of fact, you are so much more than a Land Cruiser.

Why?

Because you are an asset. No questions asked.

You do not depreciate in value. Rather, you appreciate in value over time. 

And if you allow that to sink in, you would realize that you are worth more than just the minimum.

Protect your assets through insurance.

Protect your car and your house.

But more importantly, protect yourself, your income, your health, your wealth and your future with a life insurance policy.

Allow an Insular Life policy do that for you.

Talk to your Insular Life Financial Advisor TODAY or you may send me an email at financialplanningforpinoys@gmail.com.