The 3 Life-Changing Advantages of Life Insurance

Many people in the Philippines ignore buying an insurance policy because they think it is an unnecessary investment until a sudden mishap or accident brings them to realize the importance of it. Life can be quite unpredictable, and although you cannot predict uncertainties of what might happen, you can be well prepared to deal with it. One of the best ways to cope with the uncertainties of life and ensure that your loved ones are protected financially in the face of adversity is to invest in a good life insurance policy. There are three primary reasons why getting life insurance should be a priority. Let’s look deeper into each one of these factors:

1. Income to Your Family

This is the most important aspect of life insurance that one needs to factor in. Your family is dependent on you even after you’re gone and you certainly don’t want to let them down. Whether it’s for replacing lost income, paying for your child’s education, or making sure your spouse gets the much-needed financial security, life insurance could save the day for your surviving dependents.

Calculating the premium costs involves health risks, life expectancy, and lifestyle habits. Avoid delaying buying life insurance as the quality of life deteriorates with age. The earlier a person buys life insurance, the lower the premiums will cost.

Your family feels secured because you bring in regular income to cater to their needs. The income you earn aids in paying the load for rent, daily bills, child education, and other household expenses. Certain life insurance policies provide regular pay-outs, which can compensate for the loss of income due to your death.

2. Peace of Mind

Death is unavoidable. In the face of tragedy, the least you can do for your family is to secure their financial future. Even if it is a small policy, you know that you’ve done all you can to help them tide over difficult times. 

It can also provide you peace of mind that life insurance can supplement your retirement goals. With a life insurance plan, you can ensure you have a regular stream of income every month. Putting money in an annuity is like a pension plan- put in some money regularly in a life insurance product and enjoy a steady income every month even after retirement.

3. Cover your Debts

Your life insurance policy can be designed to make sure your loved ones aren’t shouldered with hefty repayments or reduced inheritance. Some policies have features that allow you to increase your cover easily when certain life events occur. These events might include getting married or applying for a mortgage. You may be able to increase your life insurance to reflect these big milestones, by or up to certain amounts, without having to provide new evidence of your health or hobbies, where you have taken out a policy that includes this feature

Throughout life, it’s very normal to accumulate a certain level of debt, whether this is in the form of a mortgage, credit cards, a university, or a study loan. However, when a person dies, their debts will generally still need to be paid. This can affect families and loved ones left behind. For example, a mortgage that they and their partner were paying off together could become the responsibility of their partner to pay off. Having life insurance will also help cover your debts.