You can insure your home, car, income, health, and even your own life.
Among Filipinos, talking about insurance connotes something bad will happen. When in fact, insurance should be synonymous to protection!
Life insurance will ensure that your family will be taken cared of in the event that the breadwinner dies.
Most families don't get life insurance as its a taboo thing talking about death. There's a superstition that its like wishing for a person's death, so it's a big no-no to talk about it. In here, we are teaching you to "take term insurance and invest the difference" strategy. Most insurance companies will sell you 'whole life insurance' which is so expensive. It will be very difficult for start-up families to afford this so we recommend to take term insurance instead. Besides, taking term which is affordable is like winning a lotto in case the insured really dies. Well, we know everybody dies, that's a fact, its just a matter of when! For a premium of 7 to 9 thousand pesos a year for a late 20's guy your family will be assured of a million pesos ... just like winning a lotto! Compare this to how much you will pay for a whole life insurance which will cost you about 55 thousand a year for the same age plus if you miss to pay your premium, then your insurance is gone so as your money. The whole life insurance has an investment part attached to it that's why its expensive. So, if you do the investing yourself of the difference in premium between the term and whole life then you will still be enjoying your invested money even if you miss paying your premium. That's the secret.
Health Insurance will ensure that you have coverage in case you or your family members gets sick and has to be hospitalized. You should have a health insurance protection as hospitalization will devastate your finances. Aside from your emergency fund, one has to prepare for eventualities like sickness, birth of a new child, and even for your dental health thru a health insurance. Having a health card, will guarantee that the hospital will admit you and provide you with the necessary medical attention you will need. You wont have to worry about hospital deposit which is what hospitals will require you before they will treat you. If you don't have a health insurance and you get sick, the more sick you will get as you will be worried and stressed out thinking or figuring out as to where you will get money to pay for your medical needs. But if you have health protection, you will be less stressed and you will also enjoy the annual free medical and dental check-ups included in your plan.
Disability Insurance is also necessary to protect you against loss of income. Most of the time this comes as a rider to your life insurance coverage.
Non-life Insurance refers to insurance for your car, home, jewelries, and other assets. If you get a loan to buy a motorcycle, or a car, or a house, the bank will first ask you to buy an insurance. Normally, most people insure their new car or motorcycle, but not their homes. My advice is to insure all things or assets that is of value, to protect your investments. Just like term life insurance the premium is not so high and depends on the value of the property. You have to be aware of what coverage you want and/or offered to you ... like for cars, make sure you have coverage for 'acts of nature' especially if you are in a flood prone area for one and for homes, that you are covered against earthquake or floods , etc. if your circumstance need it.
Insurance is the thing you need to have but wish you don't have to use!!
Health Insurance will ensure that you have coverage in case you or your family members gets sick and has to be hospitalized. You should have a health insurance protection as hospitalization will devastate your finances. Aside from your emergency fund, one has to prepare for eventualities like sickness, birth of a new child, and even for your dental health thru a health insurance. Having a health card, will guarantee that the hospital will admit you and provide you with the necessary medical attention you will need. You wont have to worry about hospital deposit which is what hospitals will require you before they will treat you. If you don't have a health insurance and you get sick, the more sick you will get as you will be worried and stressed out thinking or figuring out as to where you will get money to pay for your medical needs. But if you have health protection, you will be less stressed and you will also enjoy the annual free medical and dental check-ups included in your plan.
Disability Insurance is also necessary to protect you against loss of income. Most of the time this comes as a rider to your life insurance coverage.
Non-life Insurance refers to insurance for your car, home, jewelries, and other assets. If you get a loan to buy a motorcycle, or a car, or a house, the bank will first ask you to buy an insurance. Normally, most people insure their new car or motorcycle, but not their homes. My advice is to insure all things or assets that is of value, to protect your investments. Just like term life insurance the premium is not so high and depends on the value of the property. You have to be aware of what coverage you want and/or offered to you ... like for cars, make sure you have coverage for 'acts of nature' especially if you are in a flood prone area for one and for homes, that you are covered against earthquake or floods , etc. if your circumstance need it.
This post is from the series Six Steps to Financial Freedom. You can read the start of the series by clicking here.
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