If you have a spouse, children, parent or family member who depend on you, or even if you are single, without any dependent, and are living your life to the fullest, you still need life insurance to make sure that there are no unpaid expenses which will burden your family in case something unexpected happens to you. More than that, you also want to "auto-save" your hard earned money. Investing in life insurance is one of the most important financial decisions that you can make.
Ask yourself these questions:
You get life insurance to ensure that your loved ones can continue living even if you're no longer around.
To get a life insurance is to protect, care and safeguard your future. There are several risks in life that hinder the income flow to your family, and life insurance is one of the best instruments to alleviate these risks.
Life insurance may not be able to prevent these threats/contingencies from happening but it can help in cushioning the financial impact any of them could bring.
Life insurance has a simple purpose; to help prepare and protect your family financially if you are no longer around. A life insurance payout or death benefit can be used in any way your family sees fit. It can be used as:
The younger and healthier you are, the easier it may be to secure the life insurance policy that you want. If you have a partner, spouse or family who may struggle to cope financially, then acquiring one today can give you the feeling of security.
If you have a family to support, the insurance provided by your employer or the company you work for may not be enough. What happens to that coverage if you change jobs? If you leave the company, you may have to forfeit the coverage you have. Having a personal policy can ensure your family has adequate protection from the unexpected.
It is important to determine the value of your life insurance in terms of what it will take for your family members to be financially independent in your absence. To estimate that amount, add up all expenses and calculate future liabilities that your family will have to pay in your absence. Your family's needs and goals must reflect in your insurance plan.
Check out Insular Life's financial calculators to help you determine your insurance needs and financial goals!
It is common to encounter financial difficulties which could lead to non-payment of your policy. To keep your policy in active status, you need to pay premiums regularly on or before your policy's due date. However, the policy allows a 31-day grace period. Your policy will cease to be in force if premiums are not paid within the grace period, unless your policy has already earned enough cash values or dividends. If your policy has already earned cash values or dividends, the premium default option you elected in your insurance application form or you have applied for through an amendment, will apply.
a written document that contains the terms of the contract agreement between the insurance company and the owner of the policy
the person who pays for and owns the policy
the person whose life is covered under a life insurance policy or the person who is given the insurance protection
the person named in the life insurance contract who will receive the benefits when the insured dies
the beneficiary/party given the first priority to receive the death proceeds of the policy if the insured dies
the beneficiary/party who receives the death proceeds if the primary beneficiary pre-deceased the insured
the amount payable to the beneficiary, as stated in the life insurance policy, upon the death of the insured
Payment or series of payments, made by the insured to put the policy in force and to keep it in force until maturity
States that for as long as the insured is paying his premiums, his policy will remain in-force and protection will continue.
a specified length of time, usually 30 days after premium is due, within which a premium may be paid without penalty. During the grace period, the policy remains in-force.
Part of the premiums you pay that is set aside as savings under an insurance policy
Grants the policy owner the right to take a loan agains the cash values of the policy. A policy loan may be repaid anytime, in whole or in part. However, a policy loan interest is charged against the loan and is compounded annually.
the date when the policy coverage matures / ends
are return of excess premiums which are paid to policyholders at the end of each policy year if the company has favorable claims and high earnings from investments. Dividends are not guaranteed because these would depend on the actual experience of the company
A provision which allows the policy owner to choose whichever way he wants to utilize his earned dividends. There are five ways: