Why life insurance is important

[slabdans]

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and now the life insurances becomes un-sured

[myLADY]

agent ka? why take life insurance? why not health insurance instead.

[THE KID]

i have an annual health insurance...just started a life insurance with Axa..but dunno...wa pakoy fix nga huna2 og mo padayon or i cut...lol...

[cebu.opportunities]

Life insurance is a very overlooked and misunderstood concept. Many people think that life insurance is just a waste or money or additional bills to pay. Life insurance is something that everybody can avail when it is not yet needed but one can no longer avail when the need is already there.

Life insurance serves a very simple purpose, to provide protection both for the insured and the beneficiaries (those who are dependent on the insured's income). It provides protection for these three certainties in life (only one will happen):

Dying too soon - Life insurance will provide financial assistance to those who are left behind by the breadwinner. Nothing is more painful than losing a loved one and carrying a very heavy burden financially in supporting those who are left behind.

Living too long - Most people want a long life but how can you enjoy if you don't have money? Life insurance have evolved and have included savings portions in it making the insured enjoy the plan he got in case he outlives the plan. People who outlive their plans turn their life insurance plans to retirement plans.

Getting disabled - Disabilities normally lead to lack of work which leads to lack of income. Life insurance policies provide financial support to the insured just in case he gets either temporarily or permanently disabled.

For a mere P44 a day or around P16T a year, you can already get a life insurance coverage of around P1.5M. Quite a bargain so to speak. Which would you prefer, having P16T in hand or be assured of at least P1.5M coverage for you life and health?

Dying too soon~~ Life Insurance
Getting disabled and Accidental Death~~ Life insurance
Critical illness~~ Health insurance and/or Life insurance
Living too long~~ Retirement, more on investment

Life insurance is important if there is somebody who is depending on your income. If wala, it could not be that useful.

When it is useful to the fullest? During the critical years. Critical years are those years wherein a breadwinner have children who are depending on his income and still doesn't have the capability to earn an income. It is to protect the breadwinner's ability to earn an income so just in case something will happen to him (accident, disability, or death), those who are depending on his income will be receiving a financial support from the life insurance company. Just think of the life insurance company as the extension or back-up of the breadwinner's income generating capacity just in case something unfortunate will happen.

And regarding the agents, yes, we have quotas hence that is why some agents keep on pushing a sale. Being a life insurance agent is a needs-based selling hence we first must get to know the need of the prospect/client before giving offers or proposals. Some agents do the short cut, they immediately show the prospect/client product or policy proposals upon the first meeting which normally ends up not fitting the actual need of the prospect/client.

How to spot if an agent is doing his/her job well or is just chasing after commissions?

If you notice the agent pushing the sale without investigating your needs, keep your defenses up. Agents should investigate first your financial status, ask your needs/priorities, normally ask your budget as well, and draft a plan out from it. The product shouldn't come out without the needs/priority investigation. Doctors don't give out medicines without knowing the cases.

I guess I want Term Life Insurance with Health Insurance and Critical Illnesses Benefit.

My situation right now is, living independently yet without dependents (no family yet). Parents are still alive but they are not dependent on my income but maybe in the near future they will be.

(If everything run smoothly) The least percentage of my annual projected income suggests a significant difference from that of the average (10% p.a.) fund value of Variable Life Insurances. This shows that I'm not for investment or retirement type of client. Maybe you can enlighten me with this.
Note: I'm following the compounding interest computation.

My concern is, I don't have large amount of fund separated or untouched for emergency cases like disruption of health and death by any means (accident, natural due to critical illness). I'm in my mid 20's right now and is currently not feeling anything unusual with my health condition but our family health history suggests my susceptibility of having several illnesses. Some of which are covered under Critical Illnesses.

What do you think is the best insurance policy for me?


I have a younger sister whose age falls below legal age.
What do you think is best for her? IMO, its Variable Life Insurance which focuses on Investments that can be beneficial for her retirement.

If I will be the one who will pay for her insurance policy, do I have the right to impose that the primary beneficiary be locked in to me unless I'll revise it (when living) and in case of my death?

Thank you.

[slabdans]

ari na lng ka nako CO insured ka

Spoiler! 

sa akong kasing2x

[freak_on_a_leash]

Ang pangutana ngano naa may age limit kung magpainsured? ngano kinahanglan dili masakiton?

[domzgnrlover86]

ari na lng ka nako CO insured ka

Spoiler! 

sa akong kasing2x

hahaha love insurance nanang imu father...

[cebu.opportunities]

OT: @ slabdans, diba ganahan mn ka wai kapikas for a lifetime? unless, . . .

OnT: To serve an illustration on one of the importance of life insurance,
kuha na dayon life insurance slabby dayon

Spoiler! 

ako imo beneficiary ha.

[cebu.opportunities]

Ang pangutana ngano naa may age limit kung magpainsured? ngano kinahanglan dili masakiton?

To keep the insurance from bankruptcy, ayaw himua og gatasan nga style ky abi kamatyunon na ayha ra mukuha og life insurance.

Kanang ma remit sa insurance company, ila sad na iinvest to keep the company alive and going. Kung tiguwang na and naa ny sakit, the client is more likely has lesser remaining number of years to live which in turn mas dako ang chances where iyang gi-remit ky wa pa nila na invest og tarong unya dako pajud kaayo ilang loss of your benefits.

[slabdans]

OT: @ slabdans, diba ganahan mn ka wai kapikas for a lifetime? unless, . . .

OnT: To serve an illustration on one of the importance of life insurance,
kuha na dayon life insurance slabby dayon

Spoiler! 

ako imo beneficiary ha.

@CO
cge ugma kuha ko

@domzki
life insurance bitaw na lifetime pa man gani