The Reason Why I Got a Life Insurance

Why I Got a Life Insurance

I was 20 years old when I got my first life insurance policy. It was in the year 2012 when I was a newly grad and had just got my first job when I decided to do so. The first quarter of my policy premium payment actually came from my first thirteenth month. And for me, it was one of the best decisions I did.

However, when I told my family that I got a life insurance policy, I was confronted with many questions and comments like:

“Ang bata mo pa, bakit ka kumuha?”

“Wala ka pa namang pamilya ah?”

“Aanhin namin yang pera na yan pag namatay ka?”

“Sana inipon mo na lang muna yung pera.”

“Sana pinuhunan mo na lang ng pang negosyo.”

Still, though, I knew I made the right decision. Why? It’s because I made sure that I knew what I’m investing my money into. I knew its importance, its benefits, and the reasons I have for getting one.

life insurance quotes

“Ang bata mo pa, bakit ka kumuha?

Well, that’s exactly the reason. Bata pa ako, so the earlier I get a life insurance plan, the better. The younger you are, the lower your premium is. And the older you get, the more expensive it gets as well. This is why financial advisors recommend millennials to get a life insurance plan as early as possible. When you’re younger, you’re healthy, and it’s easier to get your policy approved. Mine got approved in less than a week.

So why would I have to wait?

Most people think the right age to get a life insurance plan is around your mid-30s when you have settled down and is starting to build your family. But really, you can start way earlier than that. The best thing about the policy I got is that it comes with investments, so a certain portion of my fund goes exactly to stock funds. According to my policy, my projected fund value at the age of 65 at 10% will be more than 5 million. If I chose to wait until 30 before I applied for my policy, my projected fund value would just be around 2 million.

“Wala ka pa namang pamilya ah?”

Yes, I wasn’t starting my own family, but I have my Mom and my grandparents. Although they don’t depend entirely on my income, there’s nothing wrong to presume that whatever might happen to me, they will be left with enough money that can help them with their expenses. Aside from that, if I start my family in the future, I can still use the insurance and make them my beneficiaries.

“Aanhin namin yang pera na yan pag namatay ka?”

I think one of the reasons why Filipinos are so hesitant in getting life insurance is because we’re so afraid to talk about death. A lot of Filipinos are very superstitious, which sometimes become a setback. Yes, my family doesn’t seem to need the money now, but what if they need it later. What if the money they get from my life insurance actually help? Like they say, it’s better to be ready than not.

“Sana inipon mo na lang muna yung pera.”

Well, that’s exactly the case. A portion of my money goes directly to investments, which I have no plans of spending any time soon. The reason why I got a VUL plan is that I want to use my investment funds as a retirement fund for my future. The Sun Maxilink Prime policy I got actually had a projected fund value of up to 5 million pesos at 10% growth when I reached 65 years old. That’s way enough for me to enjoy my retirement.

“Sana pinuhunan mo na lang ng pang negosyo.”

Well, I can still start my own business but not before getting life insurance, securing my emergency fund, and have enough saving to make sure that even though my business doesn’t go well, I’ll still have money to pay its expenses. You see, you can’t just enter a business without thinking of all the possible consequences first hand. Remember that planning is very important when starting a business.

So again, in my opinion, buying a life insurance plan early on is a smart decision especially for millennials. It’s better to start being financially ready when you’re young. It also gives you a lot of opportunities to diversify your investments, later on, knowing that you already have your life insurance.

How about you? Have you got yourself a life insurance plan? If not, then there’s no better time than now. Talk to financial advisor you trust!

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