Why Do You Need A Life Insurance?

9/12/2017

If I die, why do I need money? You don't but your family might.

Getting life insurance just make sense; it's one of the responsibilities of having a family you care about. Our family is very important to us. So if we think good for our family then need to go for good life insurance policy. Getting life insurance will give you the maximum benefit in future. If someone you love relies on your income, you need a life insurance. Protect yourself and protect your loved ones.

You Need
Life Insurance Because.....

You never know (Dying suddenly in an accident or unexpected illness)
Funerals are expensive
Protect those you love
Death shouldn't mean debt
Anything can happen
Take care of business
Supplement your retirement
Peace of mind, plain and simple

According to the TV Program: ANC's On The Money, the 13 most important things that you should know when buying life insurance are:

How much will your family get if you die?
How much will your family get if you die through an accident?
How much will your family get if you are disabled or dismembered?
How much will you pay every month?
How often will the policy be renewed if it's a term insurance?
Where do you pay?
How long is the grace period for paying?
Where will be the investment component go if it's a VUL (Variable Universal Life Insurance)?
How much is the commission of the agent and what is the schedule of payment?
When will the policy begin putting your money in investments?
How much is the interest if you borrow from your cash value?
If there are regular cash payouts, when will it be paid and how will you get the payment?
Who do you call if there is a problem?

Who Needs Life Insurance?

Parents with children, especially very young ones
Parents with financially dependent spouses
Breadwinners who are supporting aging parents or young siblings

Anybody who is single and does not have any dependent, does not need insurance, unless for Estate Tax Planning Purposes.

What Kind Of Insurance Policy Should You Buy?

Term Life Insurance

Cheapest option
Covers you only for a specific period

Permanent Life Insurance

With cash value
Policy owners can borrow from the cash value at a certain interest

Variable Unversal Life Insurance (VUL)

Most common permanent life insurance sold
Essentially term insurance married with mutual funds, but with higher commission fees

Permanent Life Insurance and VUL Are For Those Who:

Are not in debt
Can afford to invest but do not have the time or inclination to do it on their own
Need to be forced to save

Things You Should Have Accomplished Before You Turn 30:

Life Goals

By now, you should at least have some idea on how you're going to live the rest of your life
Will you get married?
Are you in the right career path?

Emergency Fund

Insurance

2 Comments

ABOUT THE BLOGGER

Ralph "Rap" was born and raised in the Philippines. A Financial Literacy Advocate. An I.T. by Profession. An Investor. A Business Minded. An Introvert. A Photography Enthusiast. A Travel and Personal Finance Blogger (Lakbay Diwa and Kuripot Pinoy). A Traveler. An Adventurous. A Mountain Hiker. A Dreamer.

Currently works his way towards time and financial freedom.

Aileen

9/30/2017 11:25:03 am

Any single person also needs life insurance, not just for estate tax purposes but also in case of critical illness or disability or even death. Who will take care of ur medical expenses when u have a critical.illness or disability..and how do u want your body be treated when u passed away.You mentioned that funerals are expensive much more a memorial plan esp if ur family is not well off to shoulder all these expenses when something happens to you.
Another, how's your life when u retire?would u expect a confortable amount of pension from your SSS fund... remember not all companies have a retirement plans for their employees to add to your retirement expenses. It is also important to save for your retirement as early as possible and put it in a good investment vehicle to earn well before you retire.
Practically,everyone of diff life stages need a Life Insurance so as not to burden our families.

Ralph link

9/30/2017 02:20:28 pm

Hi Ms. Aileen, thank you for your insight. God Bless.

Personal Development, Finance and Investing For Filipinos