Below are 5 suggestions that can help you make the right decision for you and your family.
- Research and compare. Use the web to shop. Ask for insurance quotes that include all options or riders so you know exactly what is available.
- Ask questions so that you know what you are getting. Agents or insurance organizations should be able to fully explain exactly what you are buying and why.
- Choose the type of insurance that fits you. Rates will depend on your age and health status.
- Consider life insurance for the whole family. Expenses that follow a death or serious illness or accident will add more stress to an already devastated family.
- Consider your life insurance as a fixed and non-negotiable expense in the same way you would your mortgage or car payment. It’s easy to consider life insurance as an 'investment' rather than a need.
|Choosing the right key. Credits: Tamahaji|
I found this article from the internet and I thought it best described life insurance.
I AM A LIFE INSURANCE POLICY
I am a piece of paper, a drop of ink, and a few pennies of premium.
I am a promise to pay.
I help people see visions, dream dreams, and achieve economic immortality.
I am education for the children.
I am savings.
I am property that increases in value from year to year.
I lend money when you need it most, with no questions asked.
I pay off mortgages so that the family can remain together in their own homes.
I allow people to dare to live and to die responsibly.
I create money where none existed before.
I am the great emancipator from want.
I guarantee the continuity of a business.
I conserve the employer’s investment.
I am tangible evidence that a man is a good husband and father, and that a woman is a good wife and mother.
I am a declaration of financial independence and economic freedom.
I am the difference between an old man or woman and an elderly gentlemen or lady.
I provide cash if illness, injury, old age, or death cuts off the breadwinner’s income.
I am the only thing that can be bought on the installment plan that a family doesn’t have to finish paying for.
I am protected by laws that prevent creditors from assessing the money I give to loved ones.
I bring dignity, peace of mind, and security to the family.
I supply investment capital that makes the wheels turn and the motors hum.
I guarantee the financial ability to have happy holidays and the laughter of children—even though father or mother is not there.
I am the guardian angel of the home.
I am life insurance.
*Courtesy from the Life Foundation site.
|Insurance. Credits: lifeinsurance89441|
Last year, I attended a Financial Literacy Workshop at the Philippine Supreme Court hosted by Mr. Rolly Robles, my RFP teacher, along with his team. It was a great workshop because it made the Philippine Supreme Court staff learns how to save, spend as well as understand the importance of investing their money wisely.
One of the activities in the workshop caught my attention. It is about a person’s perception.
Check the the image (fig 1) below. What do you see? Make a wild guess.
Yes, I also see a frog. What comes into your mind when you think of a frog?
- It is ugly.
- It is slimy and gross.
- It eats mosquitoes and flies; so, it is in a way helpful to us.
Aside from the frog, what else do you see? At that time, I thought I saw a fried chicken. I guess hunger could be a factor why one can see a chicken with the image of the frog. :)
When you angle the image above, below (fig 2) is the image of what will appear. What do you see now?
Yes! It is a horse. What comes into your mind when you see a horse?
- It is elegant.
- It is powerful.
- It helps human in travel and labor work; so, it is helpful.
To perceive is “to become aware of through the senses.” The above sample is just a preview on how human minds perceive or conclude an understanding of any objects based on what is seen by their naked eyes.
The dual view also presents how some people perceive financial planning and insurance. Often times, we thought saving for retirement or buying an insurance policy is an added expense to the already piling expenses we have at home.
Like the Frog or Horse illusion above, there are a lot of misconceptions or negative thoughts attached to "insurance".
- Life insurance will bring misfortune to ones’ lives since it talks about death, disability and sickness.
- Life insurance is just another expense on the list.
- Life insurance is only good for the beneficiaries since money will be claimed upon death of the insured.
Concept of life insurance:
- To protect those who depend on your paycheck, such as your wife, children and quite possibly, your parents.
- To provide ongoing income to your dependents, until they are able to live comfortably without it in case you die prematurely.
- To provide emergency support (in some cases) for legal, medical and funeral costs, should family savings not be sufficient to cover them.
At this stage in your life, if you still don’t have life insurance, maybe it’s time to consider getting one.
The top 40 richest in the Philippines are:
- Henry Sy - $9.1 billion (SM Prime)
- Lucio Tan - $4.5 billion (Phillip Morris Fortune Tobacco)
- Enrique Razon Jr. - $3.6 billion (International Container Terminal Services)
- John Gokongwei Jr. - $3.2 billion (JG Summit)
- David Consunji - $2.7 billion (DMCI)
- Andrew Tan - $2.3 billion (Alliance Global)
- Jaime Zobel de Ayala - $2.2 billion (Ayala Corp.)
- George Ty - $1.7 billion (Metropolitan Bank)
- Roberto Ongpin - $1.5 billion (Atok-Big Wedge)
- Eduardo Cojuangco Jr. - $1.4 billion (San Miguel)
- Roberto Coyiuto Jr. - $1.3 billion (National Grid)
- Tony Tan Caktiong - $1.25 billion (Jollibee Foods)
- Lucio and Susan Co - $1.2 billion (Puregold Price Club)
- Iñigo and Mercedes Zobel - $1.15 billion (Ayala Corp.)
- Emilio Yap - $1.1 billion (Philtrust Bank)
- Jon Ramon Aboitiz - $955 million (Aboitiz Equity Ventures)
- Andrew Gotianun - $825 million (Filinvest Development)
- Manuel Villar - $720 million (Vista Land and Lifescapes)
- Beatrice Campos - $700 million (Unilab)
- Vivian Que Azcona - $690 million (Mercury Drug)
- Alfonso Yuchengco - $570 million (Rizal Commercial Bank)
- Mariano Tan Jr. - $420 million (Unilab)
- Enrique Aboitiz - $400 million (Aboitiz & Co.)
- Eric Recto - $365 million (Alphaland)
- Jose Antonio - $300 million (Century Properties Group)
- Gilberto Duavit - $270 million (GMA Network)
- Menardo Jimenez - $265 million (GMA Network)
- Frederick Dy - $260 million (Security Bank)
- Manuel Zamora Jr. - $255 million (Nickel Asia)
- Alfredo Ramos - $$250 million (Atlas Consolidated Mining and Development)
- Oscar Lopez - $245 million (ABS-CBN)
- Felipe Gozon - $240 million (GMA Network)
- Betty Ang - $235 million (Monde Nissin)
- Wilfred Uytengsu Jr. - $230 million (Alaska Milk)
- Juliette Romualdez - $200 million (Banco de Oro)
- Bienvenido Tantoco Sr. - $195 million (Rustan Commercial)
- Jacinto Ng Sr. - $190 million (Rebisco)
- Tomas Alcantara - $160 million (Alsons Consolidated Resources)
- Michael Cosiquien - $150 million (Megawide Construction)
- Edgar Sia II - $140 million (Mang Inasal)
Forbe's listing of world's top 10 billionaires:
- Carlos Slim Helu & family - $69 B (telecom, Mexico)
- Bill Gates - $61 B (Microsoft, United States)
- Warren Buffett - $44 B (Berkshire Hathaway, United States)
- Bernard Arnault - $41 B (LVMH, France)
- Amancio Ortega - $37.5 B (Zara, Spain)
- Larry Ellison - $36 B (Oracle, United States)
- Eike Batista - $30 B (mining, oil, Brazil)
- Stefan Persson - $26 B (H&M, Sweden)
- Li Ka-shing - $25.5 B (diversified, Hong Kong)
- Karl Albrecht - $25.4 B (Aldi, Germany)