Monday, November 08, 2010
Insurance, why we need it
Majority of Filipinos are not taking advantage of life insurance. It is their least priority resulting to the low penetration of insurance in the country. The less or no exposure in personal finance, the complex requirements and the pushy insurance salespeople aiming only for commission contributed to slow investment in insurance policy.
But life insurance is a must for a Filipino investor. The death benefit that a beneficiary or dependents can collect can make the family of the Filipino investor start all over again. Life insurance is designed to protect the survivors of the insured.
The Filipino Investor should study the companies offering insurance. In the Philippines, I recommend you focus on the top 6 namely:
1. Philam Life
3. Insular Life
4. Philippine AXA
6. Pru Life
source: Business World Top 1000 Corporation Year 2010
In my case, I opted to Insular Life because it is a mutual fund Filipino company which gives dividends every year to all policy holder. It is up to you however to decide which is the best insurance company for you.
As a rule you will need significant amount of insurance if you are:
1. working spouse married to a non-working spouse with or without children.
2. You are a single parent
3. You are a business owner
You will need NO or LITTLE insurance if you are:
1. single person with no children
2. nonworking spouse with no children
3. young child
In the Philippines there are different kinds of insurance such as term, whole life and variable.
In my case, I only need term insurance because it is ideal to be covered for a specific period of time.
Study well what will fit your requirements. just remember as a Filipino Investor you need a death benefit protection in order to provide money to your loved ones who will be left behind.
Again, my best wishes to you.
next topic: The 3 months cash reserve