“Every man has problems that only life insurance can solve. In the young man’s case, the problem is to create cash; for the older man; to conserve it.” -Ben Feldman
Life insurance is an imperative element of your personal finance, and yet a lot of people seem to be hesitant in getting one. More often than not, getting someone to purchase life insurance would be met with much resistance. After all, most individuals do not see the benefit and advantage of paying for something they would not be able to take advantage of. This line of thinking stems from the fact that money is no longer needed when they die. While this might be true, it is a selfish concept. You may not need money, but your family or your business might–this is where life insurance comes into the picture. Getting yourself insured would mean allowing your family a semblance of financial protection the moment you can no longer provide for them. However, once you do decide to get life insurance, how should you go about in your journey in getting one? Well, let this article serve as your guide to getting life insurance in the Philippines.
1.) Understand what you need
Prior to getting insurance, it is crucial that you know what you need as this would serve as your road map in knowing which policies to select. To have a clearer picture of what you need, your initial step should be to have an inventory of all your assets and liabilities which would include the cash in your bank among others, some investments, liabilities and the like. Knowing these would help you determine where you are financially. After that, you need to know your cash flow—your income sources so that you will have a better understanding of how much money is coming in. From there, you can determine how much you can set aside on your monthly budget and determine what kind of premiums you can pay. Lastly, you should list down your financial goals and know what you are trying to accomplish and how you intend to meet those goals then you can finally determine just how much life insurance coverage you would need.
2.) Select a life insurance company
The Philippines is rife with insurance companies, but that does not mean you should just pick the first one that appeals to you. Consider your financial goals and your budget then do your homework by researching about the insurance company you would like to deal with. Before doing any transaction, be sure to check the website of the insurance commission and get a list of legitimate insurance companies here in the Philippines. Regardless of whether you are transacting with Sun Life Financial, PRU Life UK or Paramount Insurance, it would be in your best interest to know whether they are reliable or not.
3.) Look for a financial advisor
Transacting with a chosen life insurance company would require you to find an insurance advisor/insurance agent or a financial advisor. This person should ideally be a family, a friend or a relative, however, if you do not have any friends or relatives working in insurance companies, just make sure you are transacting with a reliable one who would help you accomplish your financial goals. Some of the characteristics you should look for are trustworthiness, visibility, and accessibility as well as competence. These are the characteristics of an advisor that would aid you every step of the way. Additionally, your financial advisor should also be willing to share their expertise and knowledge to you through websites and other platforms.