5 Reasons Why You Should Get A Life Insurance

Let's talk about life insurance. 

In reality, the risk of death or disability is higher than what we think and sometimes, we cannot do anything about it. Moreover, in most cases a sudden death of a family member causes severe impact in the family's financial stability which is essential in maintaining their lifestyle. How tragic, isn't? Hence, we should protect our loved ones from that pity situation in case of loss. Let me share my reasons why I bought a life insurance.

1.  Funeral expenses

Creepy as it may be but I think this is something we should also prepare for. I travel a lot, yet I don't have much savings. So in case something happened to me, the funeral expenses will not be a burden to my family because the insurance company will pay an amount enough to cover it.

2. Life & school continues

Most of us will say, since we're dead, everything is no longer our problem. That's pretty acceptable in my case because I'm single. But I think that's very irresponsible and selfish. I have a younger brother who is still in high school. I am not really paying for his school but I will, eventually, when he reached college. No problem. I can provide as long as I am alive but what if something happened to me? So just to be sure, the opportunity of a good future for my bro will not be shattered because the insurance company will pay an amount enough to make him continue his studies.

3. Investments

OK, we sort of think that the probability of items #1 & #2 to happen is very very little. And if that's the case, the insurance premiums I have paid through the years will be a waste of money. Maybe yes, but no. Insurance companies nowadays offer life insurance with investment plans. Mine is called Variable Life Insurance from Sun Life in which part of my payments go to investments. Right now, my investment fund is not even hundreds of thousands yet, but if I'll continue it for the next 20-30-40-50-60 years, I can be a multimillionaire. 

4. Freedom from future debt

I got this idea from a friend of mine and I couldn't agree more to her. In our culture, most of the parents do not think much of the future because their children will be there for them. The result? Inherited debt, hospital expenses from the sick, etc. It's a never-ending cycle in Filipino families. This may sound too early, but I want my children to be, as much as possible, free from the debt that I will cause when I get old and sick. I know how hard it is to earn and save money hence, I don't want my children to spend them away for me because it will block their prosperity.

5. Life Insurance is not a scam

Many people are still unaware of the advantages of having a life insurance. Some even think its a scam. Well, maybe because the premiums paid will be nothing less than a giveaway if a death didn't occur during the coverage period. But if you really want to protect your loved ones, of course you have to pay for it. Nothing is free.