Unlocking Financial Security and Peace of Mind for You and Your Family 2024
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A Quick Guide to 99 Most-Asked Questions About Life Insurance: Exclusive for Pinoy (Filipino) Millennials & Gen Zs.
What is life insurance and why you may or may not need it??
Now, we've answered your most pressing questions, from "What type of life insurance is right for me?" to "How much coverage do I need?" and everything in between.
Today's millennials and Gen Zs are multi-passionate, entrepreneurs, hardworking, love to travel, and want to retire early.?
Hence, we are more open to the mindset of financial planning. And getting a life insurance plan is one of them.?
Life insurance can protect yourself and your family from financial stress in case something SADD (sickness, accidents, disability, and or (untimely) death happens.
If you already have a policy and you want to review some technical stuff or are planning to get one, and you might have some questions, I have prepared this essential guide for you.?
These are the most frequently asked questions on the internet about life insurance. So, you can finally make a more informed decision before buying one.?
It doesn’t matter which insurance company you buy, since most of their products offer personalized coverage based on your needs and budget.?
As a financial advisor, it’s my purpose to provide my clients with the necessary information about the purpose and benefits of life insurance.?
Here are the FAQs you need to know:?
What is life insurance?
Life insurance provides financial protection for yourself or a loved one in case of uncertainties that may result in financial worries.
1. Why should millennials and Gen Zs consider life insurance?
Life insurance offers security for you and your family's future and helps cover expenses in case of unexpected events such as sickness, disability, and or untimely death.?
Depending on your plan, it may provide additional coverage for sickness, disability, hospital income, etc.?
Millennials and Gen Zs have to break the cycle of generational poverty or debt repayment trap brought by financial losses because our parents may or may not have the opportunity to prepare for solid financial planning available in their time.?
2. Why do you need life insurance?
You may need a life insurance plan if you’re a breadwinner, business owner, or a financially savvy person who wants to protect your income and build a solid financial portfolio (while you are young), that you can use in the future for a business capital, travel, education, or early retirement plan.
3. Which one offers better life insurance in the Philippines?
Most life insurance products offer similar coverage and benefits. It matters to your financial assessment of your needs and budget.?
Start with the top ten insurance companies in the country today. In no particular order, they are:?
4. What are the best insurance plans in the Philippines?
A plan that focuses on health protection with a bonus investment is preferred. But it depends on your goals and financial assessment.?
If it is your first time buying a life insurance plan, it is best to get a plan that protects your income in case SADD events hit you.?
You can own several policies later on based on your specific need or financial goal. For example, a kid's education, business capital, or early retirement plan.
5. Why do you need several plans??
Because one plan cannot maximize the benefit you intended it for.
6. Can I buy life insurance anywhere in the Philippines?
Yes. You can buy life insurance as long as you and your financial advisor are both in the Philippines at the time of your assessment and signing of the contract.?
You CANNOT buy a plan if you or the agent is outside the Philippines' jurisdiction at the time of signing a contract.
Now most insurance companies partnered with GCash to make it easier for us to buy any income protection plan.?
And many licensed financial advisors today are posting on their Facebook accounts that allow you to buy one.
There is no need to meet face to face, a virtual meeting will do, and it is legal as long as both parties are in the Philippines.?
However, when payment is asked, you shouldn’t provide cash or any form of payment to your agent directly because it is prohibited (unless your agent can provide you with a provisionary receipt).?
Once a link is sent to you by your agent to confirm your plan purchase, you will be directed to a partner payment merchant.?
Your official receipt will be sent to your registered email address every time you pay your premium.?
7. What is the cheapest life insurance for kids in the Philippines??
At GCash - GInsure, you can check affordable term insurance for you or your family as low as Php. 49.95 a year.?
8. What are the basic life insurance terms in the Philippines??
Here are the most common terms you should know:
9. What is a premium?
The premium is the amount of money paid by the policyholder to the insurance company for the coverage provided by an insurance policy.?
It is usually paid regularly, such as monthly, quarterly, or annually.
10. What is a policy?
A policy is a legal contract between an insurance company and a policyholder that outlines the terms and conditions of the insurance coverage.?
It specifies what risks are covered, the premium amount, the duration of coverage, and other relevant details.?
Once your policy is issued, core benefits such as death may start from day one.
11. What is the sum assured/ maturity benefit/ face amount?
These terms refer to the guaranteed amount (sum assured) that will be paid out by the insurance company in the event of a claim, upon the maturity of the policy (maturity benefit), or the insured's death (face amount).?
12. Who can be the insured person?
The insured person is an individual whose life or property is covered by the insurance policy. In life insurance, the insured person is typically the person whose life is being insured.
13. Who can be the policy owner or the beneficial owner?
The policy owner is the person who holds the rights to the insurance policy. The beneficial owner is the person who receives the benefits of the policy, which might be the same as the policy owner or a different person.
14. What are riders?
Riders are additional features or benefits that can be added to an insurance policy to enhance its coverage. Riders provide additional protection beyond the basic policy and can be tailored to the policyholder's specific needs.?
These riders can be hospital income, critical illness coverage, waiver of premium in case of sickness or disability, etc.
15. What is a revocable beneficiary?
A revocable beneficiary is a person or entity named by the policy owner to receive the policy's proceeds in the event of the insured person's death.?
The policy owner can change or revoke this designation without requiring the beneficiary's consent.
16. What is an irrevocable beneficiary?
An irrevocable beneficiary is a beneficiary designation that cannot be changed or revoked without the beneficiary's consent unless certain conditions specified in the policy are met.
17. What is a standard risk?
A standard risk refers to an applicant who meets the insurance company's underwriting criteria without any significant health issues or other risk factors.?
They are considered a normal risk to insure and can be approved in 1-7 working days.?
18. What is a substandard risk?
A substandard risk (also called a "rated" risk) refers to an applicant who presents higher-than-average risks to the insurance company due to health issues, lifestyle factors, or other considerations.?
These individuals might be offered coverage at a higher premium rate.
19. What is underwriting?
Underwriting is the process by which an insurance company evaluates the risks presented by an applicant and determines whether to offer coverage, at what terms, and at what premium rate.?
It involves assessing the applicant's health, lifestyle, and other relevant factors.
20. What do you mean by a free look?
The free look period is a specified period (often 10 to 30 days) after the policy is issued, during which the policyholder can review the policy and decide to cancel it if they are not satisfied.?
If canceled during this period, the policyholder is entitled to a full refund of premiums paid.
21. What is a reinstatement?
Reinstatement is restoring a lapsed or terminated insurance policy to active status. This usually involves paying any outstanding premiums and meeting certain conditions set by the insurance company.?
Reinstatement can be applied within 2-3 years, and the proposed insured may shoulder medical expenses when applicable.
22. How does life insurance work?
You pay regular premiums, and if you pass away during the policy term, your beneficiaries receive a lump sum payout based on your plan.
23. What types of life insurance are available?
Term life and whole life are the most common standard options.?
The term covers a specific period, like one month, six months, or one year, and is renewable up to the age of 60 or 85. Its premium increases as the insured ages.
The whole life provides lifelong coverage, price-locked, payable until age 100 or alive, but can pay a minimum of up to 10 or 20 years, depending on the plan.?
A whole-life plan offers maximum coverage and builds cash value.
These are often called investment-linked insurance products or VUL (variable-unit linked).
24. What is the difference between term and whole life insurance?
Term offers temporary coverage, usually for a year, hence it’s more affordable.?
While the whole life plan combines insurance and investments (cash value), so it has a higher premium.
25. What is a policy's cash value?
Whole-life policies (or regular plans) accumulate a cash value over time, which can be borrowed against or withdrawn. This is the investment-linked insurance type.
26. How much coverage do I need?
The rule of thumb is up to 10 - 12 times your annual income. Calculate based on your debts, future expenses, and income replacement needs.?
Your financial advisor will help assess your coverage based on your needs and budget.??
27. How do I know if I need life insurance?
If you have dependents or financial obligations, life insurance can provide security and peace of mind against SADD (sickness, accidents, disability, untimely death) events in your life.
28. Can I buy life insurance online?
Yes, many insurance companies in the Philippines today offer hassle-free online application and purchase options.?
Browse through different websites, reliable Facebook pages, and GCash for partner merchants/insurance companies.??
29. Should I get life insurance if I'm single?
Yes, and not because it depends on your financial goals. If you want to protect your savings and assets in case of sickness or disability and build more retirement funds, then it’s recommended to get a plan while you are single since you can take advantage of a lower premium, considering your age and health.?
30. What factors affect my life insurance premium?
Your age, health, coverage amount, term, and lifestyle choices impact premiums. Hence, it is preferable to get life insurance while you are young and healthy.
31. Can I get life insurance with pre-existing medical conditions?
Yes. It is possible to get approved even if you have some pre-existing conditions.?
You may be required for a full medical exam, some blood and urine tests, physician’s notice, etc. and the underwriting determines your insurability.?
Some conditions may affect premiums, but coverage is possible in many cases.
32. What is a beneficiary?
A beneficiary is a person or entity who receives the policy payout upon the insured death. If you are single, your parents or siblings are your immediate beneficiaries.?
Legal spouses or children, and legally adopted, are primary beneficiaries if you are married.?
Those living together for over five years but are not married may or may not have children, and may be allowed to have their partners as legal beneficiaries, provided legal documents are submitted when necessary.?
33. What is a beneficiary designation form?
It's a document where you specify who receives the policy payout. Beneficiaries can be immediate family members or an entity chosen by the policy owner.?
34. Can I name multiple beneficiaries?
Yes, you can beneficiaries who are going to share 100% of the guaranteed benefits.?
If you assign two beneficiaries, their share of the benefits is 50-50. In the same way, if you declare 5 of them, each one will receive a check amounting to 20% of the total proceeds.
35. Can I change my beneficiary??
Yes, you can update beneficiaries anytime. There are two types of beneficiaries: revocable and irrevocable. If they are revocable, you can remove or replace them without their permission.?
Otherwise, you need their permission if you opt out of them and they are irrevocable. Certain conditions apply.
36. How do I choose the right beneficiary?
Choose someone you trust whom your death would financially impact. For single policy owners, parents or siblings are the immediate beneficiaries while for married ones are their husband, wife, or children.
If the insured passes away, and they do not have any beneficiary, the state will assign any person or entity to manage the proceeds of their policy.?
Proceeds can be used to pay lenders, medical, and funeral expenses or can be donated to a charity. Proceeds can also be instituted in the will of the testament.?
Please note that NO insurance agent can be the beneficiary of their client's policy.
37. Is life insurance taxable in the Philippines?
Generally, life insurance payouts are tax-free for beneficiaries.?
38. How does inflation impact my coverage?
Adjust your coverage over time to account for inflation and changing needs. Usually, life insurance protects your money from inflation since it is price-locked.?
And your coverage is 100% guaranteed, meaning it does not decrease until you file a claim.?
39. What happens if I miss a premium payment?
You have a 30-day grace period to make payments, but missing them for over 30-60 days could lead to a policy lapse.?
If you are buying a whole-life plan that builds cash value, units of your investment will automatically be canceled to cover your default.
Over time, you may still be insured as long as your policy now earns a considerable cash value.?
It is your responsibility to regularly track your plan online or through an app and keep in touch with your financial advisor for updates on your insurability.
40. How do I calculate how much life insurance I need?
The rule of thumb is at least 10 to 12 times your annual income. So, in case uncertainties such as sickness hit you, you are assured of surviving for the next ten years without an income.?
Also consider debts, lifestyle, education expenses, and income replacement needs.?
41. Can I get life insurance if I have a risky job or hobby?
Riskier activities may lead to higher premiums, but coverage is possible. Risky jobs include driving, firemen, police, politicians, seafarers, army, pilots, etc.
42. Can I change my coverage amount later?
Usually after your policy anniversary, some policies allow adjusting coverage, often with underwriting. This, in effect, will lower your premium.
43. How do I pay for my life insurance policy?
Premiums can be paid monthly, quarterly, or annually. Pay through online banking, auto-debit, check, or digital banking.?
44. Can I have multiple life insurance policies?
Yes, you can have multiple policies to suit your various financial needs. A person can have up to 5 - 7 policies to cover each of his or her specific life stages of financial planning.?
45. How long does the application process take?
Depending on medical exams and underwriting, it varies but can take a few weeks. Sign your application, pay for the initial premium, and wait for its issuance.?
Once issued you are now covered by your core benefits such as death, accidental, or disablement.?
Your policy can be issued in less than 5 minutes as long as the underwriting does not find any evidence of pre-existing conditions and other requirements such as financial statements, if necessary, are met.
46. What is underwriting?
Underwriting is the process insurers (companies) use to assess risk and determine premiums.?
They will communicate with the agent if they need additional requirements of the proposed insured such as financial statements or a full medical exam.?
47. What is a medical exam and is it required?
A medical exam assesses your health; not all policies require it. Usually, those applications with pre-existing conditions.?
If they require you for a full medical exam, your medical expenses are paid by the insurance company.?
48. Can I get life insurance if I'm an OFW (Overseas Filipino Worker)?
Yes, there are options for OFWs returning to the country.?
However, certain countries such as the Middle East have restrictions due to their higher incidence of war.? Ask your financial advisor for specific restrictions on this.
49. How does my health affect my premium?
Better health usually leads to lower premiums. That is why it’s better to get a plan while in your early 20s or 30s.
50. What if I had a family history of medical conditions?
It might impact your premium, but coverage is still possible.?
Generally, you do not need a medical check if you haven't been diagnosed with a critical illness or hospitalized in the last two to five years.
51. What do you mean by critical illness?
Critical illness is a life-threatening disease that may include cancer, heart attack, organ transplant, kidney failure, pneumonia, and AIDS, among others.?
Cancer, heart attack, and stroke are considered top critical illnesses in the country because they have the highest filed claims in most insurance companies.
52. Can I get life insurance if I've had surgery?
It depends on the surgery and your overall health. Usually, a doctor’s certification, full medical exam, and blood, ECG, or urine test are required by the underwriting.?
It’s critical to disclose any health conditions or recent surgeries and honest answers to some questions asked (including if you engage in extreme sports) during your application to prevent future denial of claims.
53. What if I have a chronic illness like cancer?
It might affect your premium, but coverage is still possible. Some insurance companies require you to have at least five years cancer-free before you can be approved.?
Underwriters can decline an application and when they do, you will receive a full refund of your initial payment.
54. Can I get life insurance if I smoke or vape?
Yes, but smokers typically pay higher premiums. Some of its applications may be postponed for six months if the proposed insured smokes heavily or is already complaining about certain health conditions.
55. Can I get life insurance if I engage in extreme sports?
It can result in being denied but coverage is possible, but it might affect your premium. Such extreme sports include skydiving, bungee jumping, surfing, rafting, paragliding, etc. Ask your insurance company or financial advisor about certain restrictions.?
56. How does my weight affect my life insurance premium?
Age and weight are indicated in your application. Higher weight might lead to higher premiums.
57. Can I get life insurance if I have a history of allergies?
Allergies generally don't impact your eligibility.
58. Can I get life insurance if I'm an expatriate living in the Philippines?
Yes, expatriates can typically get life insurance in the Philippines as long as they have been residing in the country for the last two years and they meet other requirements.?
59. Does my life insurance cover suicide?
A suicide clause limits the payout if the insured dies by suicide within a specified period. Upon investigation, the insurer may pay for a death benefit if they find no other reason to contest a claim.
60. Can I get life insurance for my parents or grandparents?
Yes, you can buy life insurance for family members as long as they are insurable. Some companies accept applications from the insured up to the age of 60 to 75.?
Usually, this is a term insurance plan that offers no cash value but provides the insured with minimum death and accidental coverages.?
61. Can I buy a policy that is payable for a short time only?
Yes. There are limited pay policies you can buy that allow you to pay for 5, 7, 10, and 15 only and you are covered till age 100. But usually, they are higher in premium because the length of the payment period is shortened.?
62. Can I get life insurance if I'm a student?
Yes, students can get life insurance coverage. If you are below 18 years old, you need a parent or guardian to contact you on your behalf, who will probably pay the premium.?
Your parents are called policy owners/ or beneficial owners while you are insured.
63. How can I lower my life insurance premium?
Maintaining good health and minimizing risky behaviors can help lower premiums.?
You can request to lower your premium after a year or the policy anniversary.?
64. Can I get life insurance if I'm unemployed?
Yes, you can still get coverage, but your financial situation might influence the amount. Unemployed wives or husbands can get a minimum coverage of up to Php. 500,000.00 as long as their spouses have an income and a life insurance plan.
65. What is a no-medical exam life insurance policy?
Some policies don't require a medical exam but may have higher premiums. This is called a Guarantee Issue Offer (GIO) and some insurance companies regularly offer this plan with a minimum and one-time deposit of Php. 1M and up.
66. Can I get life insurance if I have a history of substance abuse?
Substance abuse history may affect your premium, but coverage is still possible.
67. How often should I review my life insurance policy?
Review annually with your agent or call them when major life events occur such as marriage, kids, etc. Usually, life milestones happen every 2-3 years, so always keep in touch with your servicing agent.?
A regular review is essential to upgrade your income protection when necessary.?
Now let’s dive into one of the most popular (controversial, and sometimes misunderstood) insurance plans in the country today: the Insuravest or VUL (variable-unit linked).
68. What is a VUL (Variable-Unit Linked) policy, and how does it combine life insurance with investment components?
A VUL policy is a type of life insurance that offers both life insurance coverage and an investment component.
A portion of the premium goes towards insurance coverage, while the remaining portion is invested in various funds that you have chosen based on your investment appetite.
You can choose from the Philippines, Asia, or the Global stock market.?
Thus, the VUL type of income protection plan provides financial security and potential investment growth in the long term.?
69. How does a VUL policy allocate premiums between insurance coverage and investment funds?
The premium you pay is divided between the insurance coverage cost, administrative charges, and investment funds you select. The allocation varies based on your preferences and the policy's terms.
70. What are the different investment funds available within a VUL policy, and how do they vary?
VUL policies offer a range of investment funds like equity, bonds, money market, and balanced funds. These funds differ in risk levels, potential returns, and asset allocations.
71. What are the potential benefits of investing in a VUL policy compared to traditional life insurance?
VUL policies offer potential investment growth (but are not guaranteed) alongside life insurance coverage (100% guaranteed), allowing policyholders to potentially accumulate cash value over time.?
The longer you pay for your plan, the higher its potential to earn a dividend or cash value, which you can use for business, emergency needs, a kid’s education, or retirement.?
72. How does investment growth within a VUL policy affect the policy's cash value and death benefit?
Positive investment performance can increase the policy's cash value and potentially lead to a higher death benefit. However, poor performance can also affect both aspects.
73. Can I choose how my investment funds are allocated within my VUL policy?
Yes, you can usually choose how to allocate your premiums among the available investment funds based on your risk tolerance and financial goals.
74. What are the risks associated with investing in a VUL policy, especially considering market fluctuations?
VUL policies are subject to market risks, meaning the value of the investment funds can rise or fall based on market conditions, potentially impacting your policy's cash value.?
As long as the policy is enforced (active), your income protection benefits are guaranteed 100%, (regardless of the market conditions) less any approved filed claims, if any.
75. How can I determine my risk tolerance and choose the right investment strategy within my VUL policy?
Assess your comfort level with risk, investment goals, and time horizon. If you don’t have experience in investing yet, you may consider conservative to moderate-risk stock options.
Consult with a financial advisor to tailor an investment strategy to your needs.
76. What do you mean by fund value (FV)?
Fund value (FV), often associated with variable life insurance or variable annuities, refers to the current value of the investments held within the policy.?
It can fluctuate based on the performance of the underlying investment funds; thus, it isn’t guaranteed, which should be explained by your insurance agent.
77. Who can receive a dividend?
In the context of insurance, dividends are payouts made by certain types of insurance policies, such as participating whole life insurance policies.?
Dividends are a share of the insurance company's profits and are paid to policyholders, whether quarterly or annually.
78. What is the role of a financial advisor in helping me make investment decisions within my VUL policy?
A financial advisor can guide you in selecting income protection, suitable investment funds, managing risk, and aligning your investment choices with your overall financial plan.
79. How can I monitor the performance of my investment funds within my VUL policy?
Many insurance companies provide online platforms or statements where you can track the performance of your chosen investment funds. You may switch funds once or twice a year (with or without a fee) depending on the terms of your plan.
80. Can I make additional contributions to my VUL policy's investment component beyond the regular premium?
Some VUL policies allow "top-up or add-on" contributions, allowing you to add extra funds to enhance your investment potential. The minimum top-up may be Php. 20,000.00.
81. Are there any tax advantages associated with the investment component of a VUL policy?
Tax treatment varies by jurisdiction. In some places, the investment growth within a VUL policy may be tax-deferred or tax-free, providing potential tax advantages.
82. How does the insurance coverage of a VUL policy work, and how does it differ from other life insurance options?
The insurance component of a VUL policy provides a guaranteed death benefit plus the fund value of investment to beneficiaries upon the insured's death.?
This differs from traditional insurance as it's linked to investment performance.
83. What happens to my VUL policy's investments and coverage in the event of a market downturn?
A market downturn can lead to decreased investment fund values and potentially affect the policy's cash value but income protection remains the same as long as the policy is enforced or active.
84. Can I withdraw or borrow from the cash value of my VUL policy, and are there any implications?
Most VUL policies allow policyholders to withdraw or borrow against the cash value, but these actions can impact the policy's performance and death benefit.
85. How do charges associated with a VUL policy impact its investment growth and overall returns?
Fees, such as premium allocation charges and fund management fees, can reduce the overall returns of your investment component. It's crucial to understand these charges.
86. Can I switch between different investment funds within my VUL policy, and are there any limitations?
Most VUL policies allow you to switch between investment funds, often with certain restrictions or a limited number of free switches per year.?
87. How does the death benefit of a VUL policy interact with the investment component in terms of taxation and payout?
The death benefit is generally paid tax-free to beneficiaries. However, the investment growth portion may have different tax implications.
88. What are some alternative investment options I should consider alongside a VUL policy?
Depending on your goals, consider options like traditional investment accounts, retirement accounts, and real estate.
89. How can I effectively integrate a VUL policy's investment component into my overall financial plan?
Work with a financial advisor to align your VUL policy with your broader financial goals, risk tolerance, and investment strategy.
90. How do I buy VUL (variable-unit linked) life insurance?
To buy a VUL policy, you typically need to follow these steps:
91. Is insurance savings or an investment?
The primary purpose of insurance is to provide income protection for breadwinners in case something happens and their family depends on them to maintain their lifestyle and survive financially in the long run.
Generally, most insurance policies offered only death benefits to beneficiaries while others offered guaranteed cash for certain years.?
Now VUL is another option for millennials and Gen Zs to consider since it offers cash value that they can enjoy while alive, although not guaranteed because it is based on market fluctuations.?
But when invested in the long run, like for 10 - 20 years or until alive, it can potentially earn higher cash value that increases your sum assured.?
The good thing about the VUL plan is that in the event of default, your policy may remain intact and you are still covered by your benefits 100% because your investment can now pay for its premium.?
92. Is life insurance a secure income protection platform for Filipinos?
Yes. Life insurance companies are regulated by the government - the Insurance Commission. Its role is to help eliminate the financial risk of Filipino families from the untimely demise of breadwinners.?
93. What are the qualifications of the agent I should choose??
When choosing an insurance agent, look for the following qualifications:
94. What happens if my agent resigns from the insurance company?
If your agent resigns from the insurance company, you can continue with your policy. The insurance company will assign a new agent to assist you.?
Your policy remains intact, and you can contact the company's customer service for any inquiries or assistance.
95. What do you mean by top-up?
A "top-up" refers to an additional contribution you make to your insurance policy's investment component beyond the regular premium. This can enhance the growth potential of your policy's investments.?
The minimum top-up is Php. 20,000.000 and it’s more preferred to top up when your plan reaches 5 years and up.
96. What are the charges of my policy?
Term or whole life policy may incur minimal charges from the first to five years of the plan and some of them are:?
97. What is the best way to start investing?
Begin by setting clear financial goals, such as saving for retirement, education, or buying a home. Build an emergency fund first, then start investing in line with your goals.?
Educate yourself about different investment options and consider consulting a reliable financial advisor.
98. How about investing in the stock market?
Investing in the stock market can offer growth potential but also carries risks.?
Consider your risk tolerance and invest for the long term. You can invest directly in stocks or through mutual funds and exchange-traded funds (ETFs) that provide diversification.
99. What are the best ways to invest money?
The best investment strategy depends on your financial goals, risk tolerance, and investment horizon.?
Common options include stocks, bonds, mutual funds, ETFs, real estate, and retirement accounts.?
Diversification is key to managing risk.?
The best way to protect all your savings, investments, and hard-earned money from SADD (sickness, accidents, disability, or untimely death) events is through?
LIFE INSURANCE...
Because you and your family deserve peace of mind and quality of life more than ever!
Earn, save, protect, and invest as early as in your 20s and 30s now so that sooner or later, you can enjoy that dream vacation, start your dream business, fund your kid’s education, and have the option to retire young!
These might be some of your questions now:?
Good for you, since not all companies provide that benefit. However, most HMOs provide only a substantial coverage of Php 50-120K. Some may reach up to Php 500K if you stay in the company for many years.?
Mahal magkasakit, ika ‘nga. That is why you need private insurance to complement your existing coverage and if you decide to stop your current employment, you remain covered in case of untimely events.
If you are on a budget, it is wise to buy a term or traditional insurance first since it offers supplementary coverage at an affordable price.?
It is better to pay on an annual (not monthly renewal) basis so you will have full coverage for up to a year. It’s wise to enroll your premium to auto-debit and make sure your funds are good so you remain covered for the following year.?
If you can afford to do the same, you can do both. If not, save first for your emergency fund at least 3-6 months of your regular monthly expenses.?
Life insurance premiums need consistency of payment because if you miss one or two months of premium, your policy could lapse.?
If they are a VUL plan, and it’s already five years old and up, your policy may remain intact as long as your account has remaining units or fund value.?
Your Action Steps!
There you go! Congratulations!
That was a lot to digest but review them regularly so you familiarize yourself with general information about life insurance's purpose and how it helps you and your loved ones have peace of mind because you're financially ready for life’s uncertainties.??
Disclaimer:?
Some answers to these frequently asked questions may or may not apply to your specific plan or insurance provider's terms and conditions.
Now it’s your part to do your research:
All the best on the journey to a financially future-ready YOU!
About?
As a millennial, I often feel the weight of responsibility on my shoulders. You know, the need to secure not just my future but also my family's, just in case life throws one of those curveballs like losing a job, falling ill, or an unexpected accident, especially when there are dependents to consider.
Thanks to my network of financial advisors and their influential networks, they truly opened my eyes to personal finance and the ultimate purpose of life insurance.?
It was a real eye-opener.
Since that moment, I've been reflecting on how I spent my 20s and early 30s. I should have started my financial planning journey earlier – saving for a rainy day, safeguarding my future, and making smart investments.?
Instead, I made some less-than-ideal choices that had a significant impact on my current situation. SSS loans, Pag- IBIG loans, company loans, credit cards – you name it, I've been through it.
Why? Because I simply didn't have a grasp of personal finance back then. I was wandering in the financial wilderness, so to speak.
That's why I'm here, sharing my journey and the valuable lessons I've learned with my fellow millennials and Gen Zs.?
My goal is to help you and me alter the course of our financial futures while we still have ample time.
So, what exactly is personal finance, you ask??
It's quite straightforward.?
It's about managing hard-earned money in a way that shields you from financial uncertainties and keeps you from falling into the debt trap.?
And personal finance includes assessing your behavior about money.
It’s personal and something you and I will find success in if we continue to educate ourselves and our family.
Let's embark on this journey together! ????
P.S.
Email me with more of your questions or for a free financial assessment now.
RESOURCES
Other essential resources you should check out right now:?
HOW MUCH INSURANCE COVERAGE DO YOU NEED? | Choosing a company, advisor, plan | Life Insurance 101 Ph
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10 个月Fantastic initiative, Maria Pajuleras! Empowering people with knowledge about personal finance, especially insurance, is so important. It's great to see a guide tailored for millennials and Gen Zs. Looking forward to diving into these insights and sharing them within my network!