Essentials for the future: A guide to life insurance

By Rommel Bong R. Fuertes Jr.

Life comes at you fast—and that applies whether you’re young, working or on the verge of retiring.

With the unpredictability and uncertainties of life, one of the main things to consider is readiness. It’s not enough to build for the present and the future without anticipating the unexpected, like death.

Life insurance is the answer or the essential needed to prepare for untimely deaths. Not only will some bank savings be insufficient for the family of the departed, they may even be in debt if dealt with minimal planning.

The Philippines is a country that houses a lot of companies that offer life insurances. With a matter of deducting an establishment that caters to your liking and financial capability and carefully spectating the risks of getting one, then it is attainable to find an insurance plan for you.

The Basics

When you’re working for a company, then chances are your establishment offers you a life insurance per office policies. However, not having a job does not mean you can’t apply for one.

When you apply for an insurance, it is important to know the amount of money you put in every other month or so, preferably on days where you get your salary. Treat it like a worst-case scenario piggy bank; except it can only be broken when that particular unfortunate time comes. It’s straight to the point but has a laudable purpose.

When applied, you, the policyholder will pay recurring amounts to the insurance of your choice which is called a premium. Overtime, you’ll be required to add and add to this policy/insurance almost in a bank-like manner.

Now here’s the kicker, since it is after all called “life” insurance, when your time comes, then the insurance company will give all the premium to the bereaved family to handle financial woes and help with the money needed for the burial services.

Coming back to the first point, it does feel like a piggy bank, but it isn’t just for you, but for your family members.

However, life insurance isn’t just for the untimely death most policyholders are preparing for, as it has also a lot of benefits.

Insurances can help on medical costs and ensures you that the expenses you’ll have when hospitalized will be paid covered.

With long-term maturity options present in several insurances, having a policy makes you more stable at life after work or your retirement phase.

Another thing to note is life insurances come in many ways. It has several types and you can review the type that best fits your future agenda. Of course they all have their pros and cons, but proper planning and aligning of interests can make whatever type you choose fit your own needs perfectly.

An endowment is requires the policy owner to pay a premium until a predetermined age. It has guaranteed returns upon maturity and is expendable enough to allow savings for retirement or college funds. However, this type demands higher premiums which may not be the optimal choice for people who are aiming for full life protection.

A term policy is the simplest form of insurance simply because it has low premium requirements, and is easy to understand. One thing to note in term insurance is the premium usually gets higher with every renewal.

The whole life insurance covers a person until the age of 100 years old or as long as they live, hence whole life. Other companies proved whole life policy holders with living benefits and has fixed premiums. However it also poses as one of the more complex types of life insurances.

Which life insurance company should you pick?

Each insurance company in the Philippines are required to submit their unaudited quarterly statistics every year.

According to a December report, PRU Life UK held the top spot with over 7.95 billion pesos in new business annual premium equivalent, while Sun Life came second with 7.80 billion pesos in NBAPE. Philippine Axa, FWD Life and BPI-Philam followed to round out the top five.

The other five in the Top 10 are Manufacturers Life Insurance, BDO Life Assurance, Allianz PNB, Philippine American Life & Gen. and United Coconut Planters Life Assurance.

For more information on how they handle their life insurances and their proclaimed premiums, it would be helpful to contact them for easier pickings. Conversing with the people over at these companies will help you map out the proper policy for the type of life you and your family aim to live in the future.

Topics: Insular Life , PRU Life UK , SunLife Philippine Axa , FWD Life , BPI-Philam , Manufacturers Life Insurance , BDO Life Assurance , Allianz PNB , Philippine American Life & Gen , United Coconut Planters Life Assurance
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