The most popular question you’ll hear from finance is, “where’s the best place to invest my money?” The standard answers would be stocks, savings accounts and even real estate but did you know that your health is an investment. That’s where life insurance comes in.
Did you know that the most preferred insurance product among insurance owners in the Philippines is life insurance? In a recent survey among insurance owners, more than 30 percent prefer life insurance among other insurance products. The statistics of 2019 show that almost 1 million Filipinos with pre-need insurance plans took life insurance plans. So, what is life insurance?
According to Investopedia, life insurance is a contract between an insurer and a policyholder. A life insurance policy guarantees the insurer a sum of money to named beneficiaries in the case of the death of the insurance holder.
How does life insurance work? Depending on your policy or your investment company, you pay an installment of your insurance also known as an insurance premium. A typical life insurance policy can be referred to as your “piggy bank”. This piggy bank is 100 percent safe but you won’t be gaining an interest rate. The best thing life insurance offers in security.
If something were to happen to you, your payouts would help your beneficiaries. If nothing happens to you when your coverage ends, you receive your insurance premiums back. An important note is that life insurance is better to start as young as possible. The older you start, the more expensive the life insurance policy gets.
The great aspect of life insurance policies is that there are so many choices to fit your wants and needs. Some policies offer interest rates while others are solely made for future plans. Whatever plan you decide to get, the most important benefits of life insurance are securing your future as well as providing support to your loved ones if something happens to you.
With the current health situation around the world, this is definitely an investment worth considering. Wouldn’t you want to know that you and your loved ones will be taken care of?