31/07/2018
A glimpse about life insurance
Out of the money financial products available in the market, life insurance is the only financial instrument that could give you a benefit 20 times or more than the amount you placed on it when unforeseen events happens such as accidents, major illnesses or premature demise.
I saw this episode of the famous cartoon from Nickelodeon, Spongebob SquarePants. Where a tv ad pops right after Spongebob was caught in multiple accident as soon as he wake up, he signs the contract out of the television and when his friend patrick came in the contract is already in. They thought that it is s talisman to protect them in having an accident or any major illnesses. It is such a comedic act and I enjoyed it. They only knew that insurance is a form of protection from financial difficulty once Mr. Crabs told them that it is a money to provide for the beneficiary in times of death, accidents or major illnesses.
To cut the story short insurance shall be the foundation of all financial products that we have right now. Why?
Because as we build wealth we are exposed to risks, risks that we won't ever predict. It protects your other financial instruments such as business, investment and real estates. Life insurance is not only for death, it could also be an extension of your income before you touch your savings and other form of investments.
Even businesses follows this formula to protect this major loss in times of unforeseen events. Before you put up a business you would be required to have a fire insurance, to cover the amount of the building itself, there is an accident insurance to protect the company from losses when an employee was caught into an accident in the workplace, theft insurance to cover any loss of equipments in the office this helps them not to shell-out a money to repurchase the lost.
You also insure your high end phones right? So that in case it is snatched at Quiapo or Divisoria, it would be replaced by the network provider right?
You insure your car because you are afraid about the cost in case you got into an accident.
Do you think your phone and car is more valuable than your own self? If you thought that this things could happen to your precious items, what are the chances that this won't happen to you? If you value what you have now, protect it.
Insurance is a privilege and is not a right.
You could buy this when you don't need it, but you can't have it when you need it the most.
Do you agree?
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