The Importance of Life Insurance

Plans fail for lack of counsel,
but with many advisers they succeed.
Proverbs 15:22

Preparation is very important in life. Once you fail to plan, you plan to fail. Without intentional preparation and mistakes arrive, you may not recover financially. But if you do your homework, you can avoid huge headaches and financial disasters.

Insurance is simply the transfer of risk. Once a person understands the importance and the need of insurance, it is easier for him to buy. But some people make big mistakes in buying insurance. Some are very important, but some insurance are wasteful.

Here in the Philippines, there is a stigma for people because of the failure of a company during the early 2000’s called CAP or College Assurance Plan. Even my mother was about to get it for us. Many people bought it and later on had their investments dissolved. First, CAP was a pre-need company and was only conceptualized in the Philippines. It became bankrupt because when children reached college, CAP wasn’t able to prepare themselves for the rising tuition fees and they were not able to grow the money of the plan holders. Another reason is that CAP also spent on constructing brick buildings.

Sunlife, however, is not primarily a preneed company. It is a life insurace company. It rarely buys expensive and prime properties, but rather stays on rents.

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The most crucial kinds of insurance are: life, health, auto and fire insurance. You must always better understand the odds of life. Look forward. We do not know the future, but it is always good to give preparation to face some possible risks. Few people do. Solomon says, “Make the ant your example, they prepare their meat in the summer so when rainy days come, they are prepared.” Ants are wise. It’s good to follow them. But it’s important not to overthink and be so fearful about the future rainy days.

One good thing is that Insurance has also evolved. Before, only traditional coverage is available. When the coverage lapses, your insurance or payments disappear.

There is now what they call as VUL or Variable Universal Life. It hits multiple birds in one stone. You are insured, you are also invested as well. There are fund managers that will invest your money to find the best sources of growing them through time. You won’t bother yourself spending much on learning the nosebleed Stock Market.

Besides SSS and PhilHealth, Life insurance will be of great help to people, especially in the future, in retirement or in “rainy days.” It also gives peace of mind to breadwinners whenever the thought of being taken out of the picture comes to mind. Death is inevitable. It may come at any moment.

Only few Fathers ask the question, “what if something happens to me unexpectedly? What will happen to my dependents? Where will they go? How will they cope up economically?” The state of people we will leave behind especially young children, their education and their needs are important, we better think of availing Life Insurance.

As for Life Insurance, it is always best to consider the following factors:
1. What stage of life you are in?
2. How much is your desired coverage?
3. What are your financial goals?
4. How much can you afford per month?

After you have written these goals down, you need to find a Financial Adviser or a representative to help you.

Here’s my blog about why it’s important to get a life insurance as early as possible in life.

According to Philippine Insurance Corporation, Sun Life is still the #1 and Oldest company in the Philippines for 2014. Sun Life exists since 1865. The company survived two world wars by His grace and many recessions, depressions and other challenges.

No one sold me Life Insurance. I just sought for it after I have learned the importance of it.

As a Sun Life Financial Adviser, you can schedule me an appointment so I can provide you with financial advise and recommendation to help you with your needs. 

Update: Sun Life Financial named one of the 2016 Global 100 Most Sustainable Corporations in the World

Do not wear yourself out to get rich;
do not trust your own cleverness.
Proverbs 23:4

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