Most of us don't talk often about life insurance. It never crosses our mind until someone we know or perhaps we ourselves experience a life-changing event. It is not our consideration until big events in our lives happen such as getting married, having kids and fulfilling our long term and short term goals, and even mishaps like death and illnesses. Life insurance is not that important until we start to think more about our responsibilities and obligations.

A few days ago one of my co-employee in our company suffered from a critical medical conditions that needed an operation. I was sad when I heard the news, I thought he just resigned from work. While talking about him, my other co-worker said to me "why not offer him insurance, he needs it". When I heard that I started to think about how ironic it is. That most Filipinos will only realize the importance of life insurance when its too late - when those unfortunate events already happened.

Even if I try to insure our ill co-worker, the insurance company will not accept him anymore because he is already sick.

People are not immortals

Even though we don't know the exact time, we know for certain that we are all going to face death. It may be due to natural causes, illnesses or accidents. When these things happen, the most affected ones are those people who are depending on us. Aside from the emotional crisis, our loved ones will most likely suffer financial struggles as well if we don't prepare for it.
Do You Really Need Life Insurance?
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Life insurance helps people prepare for those unexpected events. It is a tool that mitigates the impact of life's uncertainties on our families. Our dreams for them - the life that we want them to have may still come true even we are not at their side anymore.

Why people don't buy life insurance

As an advisor from Pru Life UK in the Philippines, I already talked to a lot of people and find out what are the common reasons why people don't buy life insurance. The common reason why people don't buy life insurance is that they feel that life insurance is the least of their priority and the other one is that they think life insurance is not affordable.

Life insurance is not the priority

People I talked to often told me that having life insurance is not their priority that is why even though they can afford it, they don't take action in having one. They want to enjoy life now and think about it later, Y-O-L-O as they say. Whenever people tell me this I always say to them that it is totally fine. We are here in this world to enjoy life, to love, laugh, to live. And besides, it's their money and life after all. 

But I also try to explain to them why delaying the purchase of life insurance will have a negative impact. The more you procrastinate, the more it is hard to get coverage. In insurance, your age (and health) is directly proportional to your premium or the amount you pay for insurance, and inversely proportionate to your coverage. Meaning, the more you age, the more it will cost you to have life insurance. Plus the risk that unexpected events happen without you being insured. If that happens before you buy life insurance, your family will not have a safety net when they need it, and that is so unfortunate.
Life insurance is not affordable

Affordability is subjective. To some who have money the price of life insurance is not a big concern. But for those who are struggling financially, indeed life insurance may not be that affordable. This is why I do not offer life insurance to those people whose problem is earning income rather than protecting income. Because if I sell them insurance or "income protection", what protection it may serve the fact that those people lack income? Make sense isn't it? There are many advisors I know who sell insurance forcibly, even to those who genuinely cannot afford it. 

I always advise people NOT to get life insurance if they "genuinely" can't afford it. Because if they do buy, it does more harm than good. Often I told them if they get life insurance in that situation the drawback is that they may not have food in the table anymore because they are paying for something they cannot afford. So, my best advice to them is to improve their income first before protecting that income or buying life insurance.

How about those people who "JUST THINK" they can't afford it? There are people that have a presupposition that life insurance is expensive. Well, that is true a couple of decades ago. But today is different, the insurance industry has changed. Life insurance today is not only for the rich who own big businesses. Life insurance now is very affordable and can now be acquired by those people who want to protect their income from life's uncertainties.

In fact, life insurance today is not only about life and health coverage. It has evolved to become an investment too! In the Philippines way back in 2002, Pru Life UK pioneered the sale of Variable Unit-Linked Life Insurance or VUL. From then on many insurance companies offer the same product as well. In having a VUL plan you can protect your income and grow your money at the same time. And it comes with affordable prices, you can start your plan for about 2,000 pesos a month.

Life events that make people buy life insurance

The following events lead people to the realization that they need life insurance. And these events make people consider having their own life insurance policy. These are just three of many life scenarios that made people realize the importance of life insurance.
1. Having a business - people who have a profitable business usually consider buying life insurance. It is so when they know that they are an integral part of the business (a business partner for example). That if ever something happens to them, the business may be affected and cannot survive.

2. Staring a family - Imagine, if you are the breadwinner and something happens to you how will your family survive? Will your family continue the standard of living you provide for them when you are still at their side? Will your kids go to college and fulfill their dreams without your support?

3. Buying a home and other long term goals - If you died too early will your family have that money to continue paying for your house mortgage? Will they have enough money to cover for the payment of your car loan?

Talk to a sincere and trusted Advisor

 If ever you find yourself considering to buy your own plan. The best thing you can do is to talk to a sincere and trusted insurance advisor. An insurance advisor can guide you through all the things you need to do. He/She will explain to you the features and benefits of life insurance in detail.

There is beauty in life insurance. It brings comfort to our loved ones in times of uncertainties. Having a plan will protect your family in financial hardships should any unexpected event happen.

So, do you think you really need life insurance? I hope this article helps in figuring out.

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