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Life Insurance 101 page 1

Life Insurance is a unique contract where an insurance company guarantees to pay sum of money to your beneficiaries upon your death, in exchange for the premium you pay.

“Yes kapatid! Nobody wants to think about death, but it is inevitable.”

“Lahat naman tayo papunta sa kamatayan. Hindi lang natin alam kung kelan at kung paano mangyayari ito sa atin.”

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Think about your family…your aging parents, your spouse, your children and other family members. Is your family financially prepared if you die unexpectedly? Life goes on after you’re gone.

Life Insurance promises to take care of your family.

The proceeds from your life insurance policy can be used by your loved ones to do the following:

  • Pay for your funeral costs
  • Pay-off debts
  • Pay monthly living expenses
  • Continue a family business
  • Send your child to college one day.

Here’s another thing to consider… How about if you get disabled or seriously sick? Are you prepared? Do you have the money to pay for hospital bills and expensive medication? Getting into an accident or getting sick is also uncertain. Life insurance can be your back up plan. You yourself can claim for disability and critical illness benefit.

“Hindi ka magiging pabigat sa pamilya mo dahil protektado ka. Think about it!”

Why would you hesitate in getting a life insurance for you and your family, when you know every day that you don’t have life insurance, the future of your family is being threatened?

“Di ba para kang nakikipagsugal kay kamatayan o sa aksidente kung ganon?… It’s too bad enough to die, why would you do it for free?”

(Oo nga ano, kaya lang mahal ata ‘yan? -you might ask..)

How much does a Life Insurance policy cost?

Buying a life insurance for yourself is not as costly as you think. You only need to pay a small amount of premium regularly in exchange for the coverage that the insurance company will provide.

“Walang fixed price sa life insurance.”

There are factors that determine the cost:

Age

Price of a life insurance is cheaper when you are young. As you age, it can become much higher over time.

Gender

Women cost less than men. That is because on average, based on statistics, women tend to live several years longer than men do.

Smoking habits

Higher premium price is charged for smokers because of their higher health risks.

Amount of Coverage

The more coverage being purchased, the higher the premium rate will be.

Health Condition

If you have already acquired certain illnesses or diseases or if you have family history of cancer, heart disease or diabetes, you may have a higher premium rate.

Lifestyle

Risky or dangerous habits such as skydiving, hang gliding, scuba diving, or race car driving can pose higher risk -hence, higher premium.

In this page, we talked about life insurance and we now understood that it is a contract! Continue reading to learn what are the types of life insurance.

Want know your actual rates? Talk to our financial advisor!