How will you know if your insurance is enough? Or worse, you don’t have insurance pa. Well it’s not yet too late coz you are still able to read this post, ibig sabihin you are still alive, and sane to understand how important insurance is for you and most importantly for your family.
FIVE things to consider when buying life insurance.
- Know why insurance is important.
This is very critical before buying one. Because some people might have been just persuaded to buy and you really don’t understand why. If you have an agent, ask him or her, “Bakit ko kailangan ang insurance”. From your agent’s answer, you will be able to understand if it’s important because it is a lifelong commitment from your end.
For additional information, you may read it here.
2. Compute how much insurance you need.
A basic guide to know how much life insurance you need is compute your annual salary then multiply it by 5 at the minimum however it is encouraged for you to get at least 10x.
For example ang annual salary mo ay Php 300,000 then multiply it by 5 then your insurance need is Php 1,500,000. The logic behind why 5 years is that, at least for the next 5 years, your family can continue their status of living while trying to move on from your demise. Kung mas concern ka sa future nila, then by all means you can get an insurance that is 10x your annual salary.
Hindi ka kukuha ng insurance na mababa dahil lang sa mahal at iniisip mong dagdag gastos lng ito. Remember, this is also a form of savings maybe not for you but sigurado ako this is for your family. Isa pa, may mga insurance policy naman na may investment returns so parang maibabalik lang sayo in the future ang pera na ibinayad mo.
3. Budget must include the premium payments
You need to make sure na ang insurance na napili mo ay kaya mong bayaran until the duration of your policy term. Meaning kung 10 years to pay, dapat sigurado ka ngayon pa lng na kaya mong bayaran ang insurance mo for 10 years. Paano mo malalaman kung kaya?
- Una, dapat may source of income ka, either salary or business. This will determine na kaya mong magbayad.
- Pangalawa, may emergency fund ka. This means kung ang unang factor ay panandaliang mawala, may emergency fund ka na pwedeng magbayad ng premiums mo, habang naghahanap ka ng ibang paraan para muling kumita.
- Pangatlo, kung desidido ka talaga at nainitindihan mo ang halaga ng insurance hindi mo hahayaan mag lapse or mauwi saw ala ang naibayad mo.
4. Know how to claim
Kaya ka nga kumuha ng insurance kasi alam mo na in the future eh mgclaim ka. Ang hindi mo lng alam ay kalian tama? So sa umpisa pa lng dapat alamin mo na paano ma-claim ito ng family mo. This must be discussed to you by your agent kasi hindi mo din naman alam baka biglang mawala ang agent mo or mauna siya sayo. I am just being practical here, one can’t serve you forever so you should be responsible for your own policy. Below are the basics that you need.
- Policy copy intact, in case of lost what do you need to do? Ask this important question.
- Office of the company where you buy insurance
- Always update your payments, get SOA to make sure your payments are credited.
5. Review and update at least yearly
As I’ve said, this is a lifelong commitment, thus you need to review and update regularly. This is to make sure things and plans are in order. Your loved ones must also know about this. Kung may changes sa buhay mo, it must be considered in your polisy as well like a newborn child, new priorities etc.
I hope these insights will help make up your mind in buying or maintaining your life insurance.
P.S. The writer is a financial consultant in Prulife UK, if you need free advises regarding life insurance in general, feel free to set an appointment by contacting us at thecristobal@ thecristobal.info or message us in our FB page https://www.facebook.com/TheCristobal.info/