Tips on getting Life Insurance in the Philippines 2019

Filipinos are getting more keen to invest in life insurance in 2019. Many people are quickly coming to the realization that life insurance is a need. However, many people do not really know why.

What is life insurance?

The most basic part of any life insurance plan would be the death benefit. This would be the compensation that your family would receive when you die. This component is present in any type of insurance plan. But what more does it have to offer?

Life insurance should be put in place to ensure that the surviving relatives and beneficiaries will be able to continue life free from debt and financial strain even after the policy holder (who is most of the time the sole breadwinner) dies.

Life insurance will allow the family members to grieve in peace, because they will not be worried about where to get the money for a decent funeral and memorial service for their lost family member.

Life insurance will also cover the income that was lost because of the death or sudden disability of the breadwinner. Many people do not account for these costs and if there is no life insurance plan in place, the results of this miscalculation can be grave.

Families could lose their house because they are unable to continue paying for rent or payments for their housing loan. They could put themselves in serious financial risk because they would need to borrow money because the breadwinner would be gone. These are the small reasons why life insurance would be very important for a family.

Tips on getting the most out of your life insurance investment

Check your health. 

The trick to getting a good price for your premiums (these are the incremental payments you pay for your life insurance policy) is to start your investment while you would be healthy. Insurance companies would put a much more expensive price on your premiums if they know that you have an illness.

This is why you would be starting your investment while you are healthy would give you much more value for your money. Bear in mind that once you have started paying for your policy, should you suddenly be diagnosed with an illness later on, your premium price will not go up.

Note: insurance companies sometimes refuse to take in clients who already have a chronic illness at the time of starting the investment.

Get a policy you can afford. 

Some people agree to very high premium prices at the beginning only to find out that they will not be able to continue to make payments later on because they cannot afford it in the long run. 

Note: It is more advisable to sign a policy that you are sure that you can continue paying for, and if you would like to “top up” or add to your premium payments when you have the extra money to spare, you can do so. But it is important that you start with an amount that you can continue paying for 

Pick your riders according to what your needs are.

Many policy riders will be available for you to gain the most out of your life insurance policy. Riders like waiver of premium, accidental disability, and education assurance would be available. Just ask your insurance agent about all the available riders so that your insurance will cover everything you need (and everything your family needs in case you die.)

Note: You can customize your riders, most people just rely on what their financial adviser will tell them. But it would be a good idea to do advance research to see what your family needs, what kind of lifestyle you currently have and make a list of all of these so that you can discuss with your life insurance agent or financial adviser to see what riders would be the most advisable for your family.