How to choose the right life insurance

Below are 5 suggestions that can help you make the right decision for you and your family.

1. 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.
2. 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.
3. Choose the type of insurance that fits you. Rates will depend on your age and health status.
4. 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.
5. 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.

Life insurance (term, whole life or variable universal life) can let you get on with the business of living while knowing that should the worst happen, your family is protected.

Choosing the right key. Credits: Tamahaji

Life insurance: In simple English

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

What people think about life insurance

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.

 

                                      fig 1

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?

                                  fig 2


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.

Unfortunately, many people don’t realize the importance of life insurance until it’s too late.

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.

Imagine yourself gone tomorrow; what would the immediate impact on your family be – financially speaking? Could they afford the immediate / current expenses? Who would pay the home mortgage? Who would pay for the educational expenses?

At this stage in your life, if you still don’t have life insurance, maybe it’s time to consider getting one.

 

Images from Mo Illusions