Life Insurance is a very unique and very powerful product if it is owned for a specific purpose.
Did you know that for every life stage, there are reasons to get yourself a specific type of insurance?
Let’s take a look at how you can position life insurance on every life stage and utilize its power to fulfill your specific goals.
- When you are on your first job, enjoying your paychecks, and in your 20s, life and health insurance are at its cheapest. Take advantage of that by getting your very first life and health insurance. What’s good about the products that are available when you consult with a Professional Financial Adviser is that it can be customized to fit your budget.
- Do you have family members depending on your income? You need life and health insurance! Imagine if you were taken out of the picture, how would they maintain their everyday needs? Also, what if you are not able to work due to sickness? Insurance gives you peace of mind. It will provide you and your loved ones with a financial safety net in case your ability to earn your income is affected.
- This is also the best time to develop good savings habits. The good money habits you build during these years will definitely set you up to be a good steward of future blessings that you will receive later on in your career. You can opt to buy and own your life and health insurance plan with a savings component. The savings will be invested in a professionally managed fund and you can withdraw from it after a certain number of years.
- One way to concretely show your love to your spouse is by having adequate insurance. Now that you have leveled up your commitment to each other, it’s also time to level up your financial security. Protect each other by both getting life insurance.
- Housewives and Househusbands also need life insurance. Why? Because what they do at home while the other is working is also a full-time job. Plus, it doesn’t mean that if you are staying at home that you don’t have the risk of getting ill.
Professionals with Kids (Full Nesters)
- Kids are dependent on your income until they graduate from college and get a stable job. In the Philippines, that’s until around age 23. This means that, as a parent, you should make sure that they are financially taken care of whether or not you are there with them. A Professional Financial Adviser can help you compute how much life insurance coverage you need in order to give your kids the financial protection they deserve.
- Aside from protecting your income to support their day-to-day needs, life insurance can also protect the college fund of your kids. Yes, life insurance will instantly fill up the college fund of your kids if in case you meet your untimely demise while saving for their college tuition! Again, whether you are here or not, insurance will fulfill your dreams for your family.
- Your kids need protection too! Health and medical insurance for kids are also important. You want them to be always healthy but it’s still possible that they might get ill. Better to be prepared than to use up their college fund for medical bills, right?
- This life stage may also be the time that you settle down and get your own home. Insurance also protects your dream home from being foreclosed. If you are getting a home loan, you can use life insurance to fully pay your loan in case of untimely death during the loan period. Adequate health insurance, on the other hand, can create a fund for you to create the cash flow needed to pay the amortization if ever you get sick and cannot work. Remember, the institutions that loaned you money will still ask to get paid back even if your income stops.
Matured Professionals with Grown-up Kids (Empty Nesters)
- Congrats for setting your children up with a good start in life by giving them a good education! Now that they have already graduated and on their way to succeed in their chosen careers, it’s time to re-allocate those funds to add to your retirement! Protect your retirement fund by assessing if you have adequate health and medical insurance. Do you know that you might be one hospitalization away from being bankrupt? Worse, you might have to sell all that you have built all these years for you and your family.
- At this point, you can also have the option to trim down your life insurance coverage so that you can enjoy part of the savings. Why? Because your dependents are now independent! You may have to check with your Professional Financial Adviser to know which of your insurance policies have savings that you can redeem or withdraw in order to add to your retirement fund (and also enjoy a part of it too!)
- Now that you have retired, it’s time to plan your legacy. How do you want to be remembered? Life insurance can be a way to fully control the memories that you want to leave behind. It’s one kind of vehicle to distribute your wealth without the hassles of going through lawyers.
- As a retiree, you also want to make sure that your family will not have problems with estate taxes. Although the estate taxes have been significantly lowered, that’s not just the expense that need to be handled when you pass on. Create a significant clean-up fund using life insurance so that all your final expenses (Burial expenses, Medical expenses, Debts etc.) are all addressed and your loved ones can focus on grieving.
By now you can clearly see, every life stage has a specific need for life and health insurance.
I might have missed some reasons to buy life and health insurance but these are the points that I’ve thought of as of now. My question is…
What life stage are you in now?
If you have any questions or if you want a custom life/health insurance plan that’s designed for your needs, don’t hesitate to contact me. I’d be glad to help you out!
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