I love budgeting. I love saving. I love investing. I first built a rock solid savings account and just added up more and more on my investments from mutual funds, bonds, money market instruments, and my favorite of all — stocks. This are all good things as they all help meet my financial goals.
However, I really believe that in order for my investments to fly my financial house needs to be in order. A skyscraper built on a bad foundation will not stand! What does this mean? It would be irresponsible for me to save and invest without protecting myself and my love ones. Getting life insurance is one of the most the responsible things to do, it’s not about being morbid but it’s about letting your dreams go on for your love ones no matter what happens. I have seen good investors lose a lot not because they made the wrong investment but because they did not build their financial house in order. As your investments and responsibilities grow the more you should have insurance!
It’s my heart’s desire for more Filipinos to learn and enjoy the benefits of having life insurance! It’s time for financial freedom! Enjoy!
In the recent Asia Pacific Life Insurance Congress, a glaring statistic was bought up during a panel discussion: the penetration of life insurance in the country is less than one percent. It means that in a population of 90 million, less than 900 thousand Filipinos have a life insurance policy of some sort being offered by 30,000 insurance advisors nationwide. That is a far cry from Taiwan, which only has a population of 30 million, but serviced by 300 thousand advisors.
The sad reality is that there is still an aversion towards life insurance. Yet, life insurance has tremendous advantages for practically all kinds of people with different financial objectives. It is just a question of which feature will benefit you the most. Here they are:
1. To replace lost income
This is the main benefit of a life insurance and exactly why life insurance was created to begin with. When the breadwinner untimely dies, there is an economic impact on the survivors. The proceeds of the life insurance can continue supporting the family so that they continue enjoying the lifestyle they are currently experiencing. Or if they do have to adjust their lifestyle, the change would not be drastic. Life insurance could provide the cushion. That is why the insured should get a sufficient coverage that will ensure the continued financial support for is or her family.
2. To save regularly
If you have difficulty in saving regularly, getting an insurance plan can help address that problem. Since you will be billed regularly for your premium due, you have to pay that just like any other bill. You are forced to save through the payment of premiums. Some insurance companies even provide auto-charge or auto-debit service so that you would not miss a payment; or offer any excuse not to pay it. The premiums you are paying will accumulate over time and provide you with living benefit when you decide to cash it out eventually. This can be used as part of your retirement funding.
3. To fund critical illness
Contracting a critical illness can instantly wipe out your savings or put you in a financial hellhole. Statistics show that 90 percent of the Filipinos will either dip into their savings or borrow money to pay off medical bills associated with the treatment. A Health Maintenance Organization (HMO) helps offset some cost but the critical illness insurance solves that problem by paying out a lump sum when you contract one. The proceeds can be used to fund for the cost of treatment, and the medicines thereafter; or travel around the world before you bid it goodbye.
4. To fund education
Since the fall of College Assurance Plan and Pacific Plans in early 2000′s, the public has been looking for alternative means to fund their children’s education. After all, the need to obtain a good education is still imperative with or without these pre-need companies around. And through the years, there is a growing interest in life insurance plans as a means to provide education funding. Specifically, an endowment plan can provide guaranteed endowment benefits at a predetermined time that can serves as education fund for the child, not just in college but even in high school as well. Better yet, in case the policy owner dies prematurely, the company pays out the proceeds so that his beneficiaries can realize their dreams of obtaining good education.
5. To transfer wealth
For the rich who wish to transfer their wealth to their heirs, a single-pay life insurance policy is a sound investment. It guarantees that the heirs will receive their share of inheritance upon the death of the insurer. The amount invested is guaranteed up to 125 percent when the insured dies. What is even better is the tax protection a life insurance product offers. The investment becomes tax free as long as the beneficiary is designated as an irrevocable beneficiary. That way, your heirs receive the full amount that you want to leave them without the government partaking its share. Furthermore, the investor remains in full control over the policy since he is the insured. This prevents the heirs from accessing the money and spending it prematurely. Re post from Chinoy TV host Kendrick Chua
Shared by Coach Amos
0923-1520501Like: http://www.facebook.com/coach.amos
Follow: http://twitter.com/coach_amos
Visit: http://coach-amos.blogspot.com
No comments:
Post a Comment