Why do you need life insurance?

Many people now appreciate the need for life insurance. But then again, a big part of the population would still say they do not need it. Let us answer the question now, once and for all. Why do people need life insurance?

Dependents. If you have a family, the first and most important reason to even consider taking out a life insurance policy would be because of your family. You would want to make sure that you can be able to have something set aside for them, just in case anything were to happen to you.

In case you are no longer able to work, in case of an emergency, in case you would pass away. A life insurance policy would safeguard your family from any financial trouble.

Financial stability. In line with having a savings account for your family, you will also have an investment. For most people in the Philippines, having financial stability is an unrealistic dream for most people. People live from paycheck to paycheck without being able to save or invest anything.

A worker would receive their salary and seemingly in the blink of an eye, the money will have disappeared. Paying a small premium each month for life insurance would be as good as investing. You would be setting that money aside and then in the future, you would be able to reap what you sow.

Medical needs. This is one of the things that makes saving so difficult in the Philippines. Whenever we think we would have some savings leftover in the bank, a medical emergency would arise and that small amount of savings would be depleted, and in some occasions, it would not be enough to cover medical expenses.

Medicines and doctors’ fees alone would set you back thousands of pesos. A life insurance policy would already include a medical benefit. You would be paying a certain amount in premiums per month but then the payouts you would be receiving would be much higher than the premiums you pay. It would be worth every peso invested.

Invest while you have the means. If you are a young adult who earns an income, should start investing in a life insurance policy. It would be easy to allocate around Php3000 to Php4000 every month into your budget, to ensure that you will have something set aside for you and your family in the long run.

It might seem like another useless expense at first, but as the value of your policy would slowly increase, you will see that your hard work and investment would pay off. While you still have a steady cash flow coming in, you should seriously consider getting a life insurance policy. The value of your policy would also be bigger if you choose to invest earlier.

These are only a few of the reasons why investing in life insurance is a need. 

The bottom line is that there will always be expenses that you will need to pay. Life insurance can be considered part of your budget, but then it is the only part of your budget that will ensure that you have something set aside for your future.

In the year 2019, start investing in your future today! You will thank yourself in the future when you will have the financial freedom you are dreaming about today.