Life Insurance: More About Life Than Death

It is not a surprise that the Philippines has one of the lowest life insurance penetration in the world. It is because most Filipinos have a shorter view of the future. Most of us only think about the next payday, the next bills to pay, the next vacation that we will take, the next gadget that we will go to debt into.

Only a few think about the next five, ten, or even twenty years. That is why most Filipinos don't see the value of life insurance. They can't see the idea of getting it as early as possible so they can use it when they are taken out of the picture, involved in an accident, or get into sickness and disability. However, life insurance is more about life than it is about death, accident, disability, and sickness.

Here are the two most important reasons why:

Life Insurance gives you a comfortable future in case you live for too long.

It is natural to think of a life insurance product as a risk management tool so we can leave a significant amount of money to our loved ones in time of our death. However, as per the World Bank, Filipinos' life expectancy is increasing each year.

In 1962, Filipinos' life expectancy is at 58 years. Fast forward to 2016, Filipinos are expected to live for 69 years. Now, you might think that living for too long shouldn't be taken seriously as dying too soon.

However, living for too long brings its own risks. If you live for too long and you are not prepared financially, you will spend your golden years struggling to survive each day because you'll be most likely out of work because of your old age and the only source of income that you'll have is probably your SSS/GSIS pension or your children.

Life Insurance with an investment component will allow you to enjoy your retirement days because it will allow you to finance your golden years without ever needing to work again or depend on your loved ones. However, this will only be possible if you will acquire your own investment-linked life insurance as early as possible to give your investments enough time to produce results.

Life Insurance isn't just about you. It is more about your loved ones' lives.

We work hard every single day so we can give our loved ones the life we've been dreaming for them. We want them to continue to enjoy life and improve the way they live no matter what happens to us. But can we continue to provide for them financially if we are taken out of the picture, get involved in an accident, or if we are diagnosed with a critical illness?

If your answer is no, then you need to start considering getting a life insurance plan because you'll never know when you'll be affected by life's risks. Remember, a life insurance plan isn't solely about you, it's about your loved ones too.

We can never predict the future accurately. That is why we need to make sure that we secure the life that we are building, not just for ourselves, but also for our loved ones. Life Insurance is a financial product created so you can still provide when you are already gone and unable to work for your family. It will also allow you to enjoy life in case you are blessed with too much time.

About the Writer

Alfred Cardenas is a Licensed Financial Adviser and Certified Investment Solicitor. Follow him on social media for more practical money tips and advice.



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