Life Insurance: A Good Investment

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A life insurance is a form of protection against the financial consequences of the sudden death of the insured individual. The beneficiary, which is usually the spouse or children, will receive the proceeds. When you buy a life insurance, you are actually buying protection, security and, of course, peace of mind.

However, some people dislike the concept of paying a company for something that they won’t have a use of at present. For them, obtaining an insurance policy is and will never be a sound investment.

Is that really the case? Let’s explore the topic further.

Financial security through life insurance

Before anyone must purchase a policy, he or she should consider his or her current financial situation. What is your current standard of living? Do you want your loved ones to maintain such? Do you have enough savings so that your dependents can continue living the lifestyle that they want? Coping with a death in the family is serious enough, and abrupt lifestyle changes can only interfere with such. Further, it would take years before your children to cope with these changes.

Even if you think your family will adjust well after you’ve been gone, there will be major financial responsibilities. Who will foot the final hospitalization bill? What about your funeral costs? On average, you will need about $5,000 to $8,000 to cover the funeral expenses. Such amount is hard to come by unless you and your family have emergency funds.

What about the ongoing expenses such as education and amortization that is well covered when you are still alive? When you die, future income is already lost. Even if your spouse and elder children are already earning, there is still a difference when there are at least three family members who contribute to the monthly expenses. Will you risk your dream home or your children’s dream of becoming somebody someday?

From these considerations, we can say that a purchase of a life insurance is indeed a good investment. Investment in the sense that we are protecting the future of our loved ones even after dying. A coverage is the simplest yet most essential protection available that also ensures that future needs of every family member are met.

True enough, the only certain thing in life is change, and death is a major inevitable change that we had to face. We all have an adversity contemplating our own death. However, a life policy presents itself as a proactive death planning tool. If you care about the future of your dependents, it is surely worthy to invest in one.

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Five Reasons Why College Education is Important

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“Education is what remains after one has forgotten what one has learned in school.” -Albert Einstein

 

One of the sentiments that is echoed all over the world when it comes to education is that it is that one thing that cannot be stolen from you. In fact, so many adages have been written which extols the necessity of education in our lives and in the lives of our children.

In a sense, education is the best gift we can give to our children if we want to secure their futures as it is that sole aspect in life which would prepare them for what lies ahead. It shapes their dreams and helps them mold their plans of what they want to be.

Unfortunately, getting a degree and having your children finish college is not as affordable as we wish it to be. For this reason, parents would often send their kids to school but would forego sending them to college as they see it as an unnecessary expense.

However, with wise financial planning, parents can actually prepare for their children’s college education. In fact, there are innumerable policies in insurance Philippines that would offer extensive educational plans. If you are thinking of sending your kids to college, here are some of the motivating factors that might convince you and fortify your decision to enroll them:

1.) Learning how to learn

In the Philippines, most employers would require at least a college degree from any course of their potential hires. Others might find this a bit discriminating, but there is an apparent reason for this.

Employers tend to have a preference for college graduates because these are individuals who understand and appreciate the learning process. New jobs mean new responsibilities and new environment which is why it is essential for potential hires to have the willingness to learn.

2.) Dealing with adversity

Regardless of whether the economy is performing well or not, degree holders tend to find jobs better and easier. It is without a doubt that they are more in demand than those individuals without degrees.

Furthermore, they can better deal with career adversity and they have a multitude of resources should they want to get back on their feet.

3.) Better earning potential

Education is an investment, and you will see how true that would be once you apply for your first job. People with degrees tend to earn more than those without as it is reasonable to expect a certain skill set, talent or expertise from you seeing as you have successfully hurdled through a two or four-year college course.

It matters not whether you only get as far as a two-year degree, you would still have a better chance of landing a job and out-earning someone who only holds a high school diploma.

4.) Learn skills before employment

Your college education will inevitably teach you some skills where you would learn abilities that can be useful for your future employment. College courses are career oriented in a manner that they prepare students for what it would be like in the actual working field. These are not just ordinary classroom lectures either, but in depth explorations of what you would go through should you ever be employed by the industry you choose to study in.

As a result, your potential employers do not only reasonably expect theoretical knowledge from you, but also that you would be able to perform well beyond your classroom experiences.

5.) Personal Satisfaction

Holding your college diploma and earning that degree is a major life goal and a milestone for many. If you have survived your college years in trying to earn that diploma, it will bring you a great deal of personal satisfaction—one which you can relish for years to come.

After all, pushing through college and making it through all the lectures, classes and internships are no easy tasks. Indeed, accomplishing such a goal is an achievement—one that empowers you. Along with this sense of empowerment comes a feeling of confidence—the confidence to step and take on the world and feeling like you are ready for anything.

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Insurance Philippines: Importance of Insurance to Filipino Families

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“If a child, a spouse, a life partner, or a parent depends on you and your income, you need life insurance.” -Suze Orman

The Filipino family is considered as the basic unit of society. In fact, the family is such an integral part of the community that individuals should take the necessary measures and precautions in order to make sure that the family is adequately protected. Unfortunately, when it comes to the guarantee of the future and better welfare for the most important persons in our lives, we often fall short in securing just that. Our first brush with insurance may be when a relative or a friend would approach us to propose selling a coverage plan for our families.

More often than not, most individuals would see this as another encumbrance on their finances and an unnecessary addition to mounting expenses that they would decline without giving it a second thought. Or if we do, we shop for policies and coverages we do not fully comprehend. We buy because we want to accommodate without truly understanding its value.

Life insurance is a pivotal financial product that safeguards the family from pecuniary ruin should anything happen to you in the event of your untimely death. Unfortunately, death and sound investment do not really present an optimistic sentence, and as a consequence, it is a sensitive topic to discuss. Indeed, life insurance may be one of the products hardest to sell among Filipinos, but that should not be so.

Insuring yourself carries a lot of benefits to your family and would protect their future as well. But before scouring the market for the best life insurance in the Philippines, it might be wiser to know why your Filipino family would need it:

1.) Income Replacement

While you might take all the necessary measures to guarantee your safety in your everyday life, you can never entirely prevent an accident or sickness from happening. In the event that this happens, your family would not only grieve over the loss but would also experience the significant financial impact of losing what you have been providing them.

If your family gets by without your income, they will face innumerable financial problems such as wondering where to get the money to pay for a myriad of bills. With insurance, you can alleviate the financial blow to your family as they grieve and commence practicing proper financial management.

2.) Educational Fund

If there is one thing Filipinos firmly believe, it is that education is the best and greatest inheritance they can give to their children. Considering as it is one thing that cannot be taken away from you, Filipino breadwinners ensure that their children get the necessary education to get by in the future.

Unfortunately, if breadwinners can no longer finance a dependent’s education, what would happen to them? Education in the Philippines is not exactly affordable, and in the event of an untimely death, this could bring serious repercussions. One way to address this is to have an educational plan as with this, children are guaranteed the financial backing to finish school and can look forward to a brighter future.

3.) Medical and Funeral Expenses

In the event of your untimely death, your family would not only have to suffer through the brunt of losing you, but they would also be left with the responsibility of defraying funeral and medical expenses. At a time of grieving, this can be incredibly stressful and at times, would not have adequate funds to pay for it. They might be constrained to used college funds or savings just to finance these expenses.

In the Philippines, death is expensive and the financial blow your family will experience can be detrimental. With this in mind, it would make great sense to at least be prepared financially.

4.) Emergency Fund

You will never know when an emergency strikes and when it does, it is best when you are financially prepared. Some life insurance plans would allow you to withdraw from the accumulated cash values and dividends should any emergency occur.

You might want to think of your insurance policy as a secondary savings plan or a forced emergency saving—much like the ones you have in the bank. Seeing as this is not as readily accessible as the ones you have in the bank, it cannot be easily touched and would only be used for emergencies.

You should not wait around for the unexpected to happen. After all, there is no better time to be insured than now. Be financially prepared and get yourself insured today.

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Five Reasons You Might Need Car Insurance

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“She is not just four wheels and an engine. She is home” -Author Unknown

Owning a car is possibly one of the biggest investments you can make. And what do you do with your investments? You protect them with insurance. Protection aside, there is a myriad of reasons why you would need auto insurance—in some cases, it is required by law, and at other times, it is also for your own protection. Seeing as the car is already a big investment by itself, you might think that having auto insurance is just another unnecessary expense.

But take note, if you can afford to buy a car but not insurance, then you cannot afford to purchase a car. In any case, before you buy a car insurance in the Philippines, here are some excellent reasons to strengthen your resolve to do so:

1.) It is required by law

In the Philippines, traffic mayhem is rife which makes auto insurance essential. By law, you are required to get basic Compulsory Third Party Liability car insurance (CTPL) to protect against possible liabilities to third parties. Third parties could be anyone but the driver, passenger, family member or household member of the one who owns the vehicle.

CTPL is necessary as it would protect any pedestrian from potential damages or injuries that might have resulted from driving and use of an insured car. The coverage extends from body injuries to deaths that could be up to a hundred thousand pesos. However, damage or loss of property is not covered by CTPL and is limited in this regard.

2.) Your car is an expensive asset

The average brand new car in the Philippines would cost you almost half a million. As a result, it would be the second most expensive purchase most individuals would make in their lives.

Furthermore, most people would buy cars as it would make any of their trips convenient owing to the service they provide to their owners. With all this combined, you can easily see how protecting it adequately is paramount. Getting yourself car insurance is one way to protect this new asset.

3.) You cannot have a new car without it

In some cases, you cannot purchase a new car that includes a loan as you would not qualify if you do not have a full auto insurance policy. Additionally, you would not qualify to lease a vehicle either.

Most lenders would want the assurance to be paid. So, as a necessary consequence, if you figure in an accident without car insurance to defray the repairs, you would not be able to pay the company that provided you with a car loan. To ensure you keep paying this, you should get your car insured.

4.) Cars are important

If you use your car on an everyday basis and skip on car insurance, you would not be able to use your car if you get into an accident while driving it. This is especially the case if it sustains damage wherein you cannot afford to have it repaired.

Repairs and fixes are things covered by auto insurance and would help you get to where you need to be and make your necessary daily trips more convenient.

5.) Provide legal protection

No matter how cautious and mindful we are, accidents are an inevitable consequence of driving—whether we like it or not. Furthermore, accidents that involve third parties would likely land you in a legal snag—regardless of whether it is your fault or theirs.

This means that there is nothing stopping anyone from suing you and even if you do win the case, you would still have to pay the necessary fees in litigation. Your auto insurance would help you and serve as a buffer between any legal claims and your wallet. Some coverages would include providing an attorney to handle lawsuits arising from automobile accidents.

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Five Things You Should Know About Auto Insurance

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In the Philippines, the average brand new car costs almost half a million pesos nowadays. Considering the exorbitant price you pay, it is readily assumed that your vehicle is one of the biggest investments you would ever make in your life. To protect this expenditure and asset, getting an auto insurance should not be a matter of the question when—but rather, it should be automatic.

For this reason, it is imperative to include an auto insurance when you are calculating your budget. After all, you would not only be paying bills to defray the cost of your car loan—but your car insurance as well.

However, do not just simply buy whatever auto insurance you can immediately find. You need to be a little meticulous about how you select an insurance for your car—take into account more than just the monthly premium you will be paying and think about what the insurance policy actually covers.

Experts may encourage you to buy as much auto insurance as you can afford, but this is not necessarily helpful. To have a better understanding of what you are paying for, it is best if you know the basics of how it works and which coverage you should have and skimp on. Understand what the best auto insurance coverage is for you and select that.

So, if you are planning to buy a car insurance in the Philippines anytime soon, here are a few things you should know:

1.) Some of the most helpful coverages are the cheapest

Typically, liability insurance would be the most expensive and as it should be. Most common coverage limits would mean that your insurance is on the hook for a great deal of money for any kind of damage that you do. However, not all coverages are the same, and most of them would be capped by the value of your car.

You might neglect to get optional coverages such as roadside assistance, rental reimbursement, and gap coverage but these are actually necessary for optimal protection with just a little price increase. Paying a bit more than usual would not be all for naught. After all, it could potentially save you a lot of money in the future.

2.) Many factors would affect your insurance rate

Your car insurance rate does not only depend on the make and price of your car. Depending on the auto insurance company, the criteria can mean a myriad of things when it comes to evaluating an insurance application.

Guidelines in each company differ in the sense of which drivers they want to accept and how much they would charge those groups they consider to be at a higher risk. Underwriting is the term given to the process of evaluating an application. It is usually done automatically and by a software behind the scenes.

3.) Insurance prices vary by company

Much like how life insurance prices differ from one company to another, auto insurance prices vary a lot by the company as well. This is because each company has its own formula to assess and evaluate a risk. From there, they will evaluate how much you pay for the coverage.

As a consequence, no two insurers would offer the same price for the same policy. Considering this, comparing prices is paramount to choosing the best insurer. After all, if you do not compare rates, you would likely end up overpaying or lacking in some coverages.

4.) You will potentially pay more if you let your policy lapse

Auto insurance companies view drivers who have licenses but without car insurances as reckless, irresponsible and risky. Considering this, letting a policy lapse means that you are likely to pay more when you do buy insurance.

Prevent this, make sure to acquire and pay for your car insurance before your current policy is canceled.

5.) Discounts can make a significant difference

You might think a safe driving record, anti-theft devices, and car safety features are negligible things, but it actually contributes to a significant difference in what you pay for your auto insurance.

Many companies would offer you discounts for this such as this—most especially if you opt to pay in full.

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Six Signs of a Dishonest Insurance Agent

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“I detest life-insurance agents: they always argue that I shall someday die, which is not so.” –Stephen Leacock

Insurance in the Philippines has been something most individuals have been avoiding like the plague. Whether they do wish to accrue an extraneous expense or simply do not see the necessity for it is up to their reasoning, but what happens when you do decide to purchase insurance? How can you guarantee that your insurance agent is someone you can trust?

Well, it might not be easily evident, and there are no concrete signs that would warn you. However, there are definitive red flags you can watch out for that would likely tell you that you are dealing with a dishonest agent who might be doing some under the table dealings—or worse, downright illegal.

Have a keen eye out for these signs and avoid getting yourself into insurance scams:

1.) An agent that is incredibly aggressive

While agents are expected to be enthusiastic about their work, they are not supposed to be overly aggressive in pushing you to buy a policy right away. Whether they bully you to it, sweet-talk you with “only today” deals or the like, your insurance agent should never pressure you into buying a policy immediately. Instead, a proper agent would be more patient in explaining the various options available and would give you as much time as you need to evaluate each and every one of them.

Instead, a proper agent would be more patient in explaining the various options available and would give you as much time as you need to evaluate each and every one of them.

2.) An agent thirty quotes a seemingly low premium

Be wary of agents who would sell policies at incredibly low premium prices (or even ones that seem much lower than your previous premium). If it is too good to be true, it probably is so it would do you well to be meticulous and double check.

Take note, insurance premiums may vary from one insurer to another, but they usually fall within a close range of rates.

3.) An agent who is hard to reach

Your agent does not have to be at your beck and call at all times, but a legitimate one would respond to your phone calls or emails within a reasonable time (within a day or two). Furthermore, your agent should have a valid email address.

Avoid the ones that communicate to you exclusively on the phone or his or her personal email address.

4.) An agent who avoids being questioned about his experience or credentials

While your agent can be relatively new, he or she should be able to provide their license numbers which you can then verify by contacting your state’s insurance authority.

If an agent balks at being questioned about his experience in the field or his credentials, there is something potentially fishy going on. It might be wiser to find another agent.

5.) An agent that adds coverages to your policies that you did not approve

Agents would earn commissions from insurers on the premiums you purchase. For this reason, unscrupulous agents would try to get you to buy premiums that have a hefty price tag as this would mean more commission for them. Particularly notorious are those agents who would add coverages to your policy without your knowledge have not requested or did not approve.

Considering this, it is always best if you scrutinize your policies carefully and see if it contains anything you have no request, approved or wanted.

6.) An agent that asks you to pay for premiums payable to him or her

This is a definitive red flag. Whatever premium payments you make should always be payable to the insurer and should be directed to the same. Your checks should not be payable to the agent and if you leave any payments to your agent at all, demand for a receipt.

In the worst case scenario wherein an agent would run off would your premium payments, you would at least have the receipt to serve as evidence.

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Four Basic Insurance Mistakes to Avoid

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“You would not cancel your insurance policy in the middle of a hurricane; you should not sell silver when it takes a tumble. Like any insurance, silver’s value will pay out over time, not day by day.” -Howard Ruff

Insurance is the metaphorical safety net you purchase to protect your family and yourself should any untoward incidents happen. While many have largely resisted getting themselves one seeing no absolute need for it, there has been a massive influx of individuals availing themselves of insurance policies. Most individuals make the mistake of not insuring themselves as they see this as an extra expense whose payoffs they do not get to enjoy unless they die or sick. In other words, they see insurance policies as physical manifestations of delayed gratification.

However, the reality is, having yourself insured is a significant investment and is actually more cost efficient—just think of the piling bills your family would have to contend with if you are uninsured. However, even if an individual does decide to get insurance, it does not automatically mean he is safe from committing any mistakes.

Remember, if you do not want to pay more than what you need, you can always keep insurance costs under control by avoiding making elementary mistakes. So, if you are planning to get insurance in the Philippines anytime soon, here are some mistakes you should avoid:

1.) Not shopping around for policies

One common mistake among people who buy insurance is that they do not shop around for insurance. They would usually take a look at the one offered to them and buy that one outright. If you are in the market for insurance policies, make sure to widen your options. Much like how you buy your household items or clothes, look around, choose the best one with the most reasonable price.

So, read the insurance guide given to you by the agent, make a few calls to several other companies, and you would see how this would make such a huge difference in the price you pay for insurance.

2.) Only comparing rates

While the price and rate are paramount considerations when it comes to buying an insurance policy, it should not only be the only considerations you have. Keep in mind that some insurance policies may be more expensive than the others because it offers a more expansive scope and coverage than the one you are looking to buy.

Furthermore, apart from the policies and packages offered, it would bode you well if you also examined the companies complaint ratio and saw if they have had any complaints in the past. Generally, a company with favorable reviews has a higher customer satisfaction—these are the companies you would want to get insured at.

3.) Not comparing agents

You should be as meticulous in selecting your insurance agents as you are with your insurance policies. Remember that not all agents are created equal, and there is certainly a fair share of charlatans in this industry who are just looking to rob you out of your hard-earned money in the guise of selling you an insurance policy. You should always make sure that your agent is properly licensed.

Additionally, it would be a great help if you could get referrals and if you asked them some questions. Ask them to explain what they are trying to sell to you and how it adds value to your life.

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Just as you would thoroughly read a contract, you should always read the fine print of the policies you are looking to buy. In fact, it is a consumer’s biggest mistake to overlook that and fail to know what their deductibles are. More often than not, if you fail to read your policy meticulously, you would not know what is covered until after disaster has struck.

Apart from thoroughly reading your policy, it would also be a good idea to talk to your agents and find out what is covered. Additionally, do an evaluation each year.

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