What To Consider When Getting Insurance
Patricia Aira R. Sales in Tips and Advices
Jun 19, 2020 • 3 min Read
The pandemic gives us time to ponder about our future.
Insurance plays an important role in one’s life. Investopedia defines insurance as “a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company.” You would see different offers of insurance packages from different companies everywhere. You might feel overwhelmed by a lot of numbers that seem to be floating in the air.
Getting insurance is not just a spur-of-the-moment decision, it is a long-term commitment, and you have to think about it and prepare for it thoroughly. You must have the financial cover to aid you in the present and protect you in the future. Your age plays a big factor when getting insurance. An insurance policy gets more expensive as one person matures because it has more risk for the insurance provider.
Here are some tips you may want to consider if you’re thinking of getting your life insured.
Look for a trusted and credible insurance company. The credibility of the insurance company is very important. Make sure that the insurance company is financially stable. Examine the credit ratings as well as feedbacks from clients.
Identify your needs and your goals. Life insurance is designed to either last a certain period or a lifetime. You have to analyze what you have in your life right now that needs protection and what you want in the future.
Age plays an important factor when getting insurance because the older your age is, the higher the premium payment is. Other factors to consider include mortgages, car loans, credit cards, burial wishes, education, childcare, and health care.
Choose a premium you can afford. Insurance is a long-term commitment, and while more coverage means more protection, consider your paying capability. A lot can change over time, what you can afford now may not be what you can afford tomorrow. You can start small with your insurance, then just add more coverage as time goes by and as you become financially stable.
In the Philippines, annual life insurance premiums can range from Php 24,000 to Php 55,000 or higher if you choose to have supplementary benefits.
Talk with a trusted financial adviser. A financial adviser will help you come up with comprehensive coverage that can fit into your budget and lifestyle. If you decide to make changes with your policy, your adviser will be the first person you can call.
Know how your insurance works. You should know full well of the different circumstances under which you can make claims on your insurance policy. This saves you from the frustration in the future after you find out your policy does not cover certain things. If you’ve secured life insurance, remember to regularly check your policy especially if any big changes have happened in your life like getting married or having children.
The future is full of uncertainty but there are certain ways you can protect yourself and your family. Insurance is not just a piece of paper, it’s a paper that contains security and stability in the future. We’ll never know what life has in store for us so better secure your future.
