One may have a negative connotation when he/she hears the word “insurance”. Naysayers tell people that it is just a waste of money. Traditional insurance only pays the beneficiaries of the insured after his/her death. GOOD NEWS! Time has changed and insurance has already evolved. We now have VUL or Variable Unit-Linked which is an insurance product linked to an investment. It is true that when compared to other investment vehicles the growth of money in VUL is relatively slower. That is when we are talking about ROI or Return on Investment. However, what many people don’t realize is that insurance is not innately designed to make someone rich, rather it prevents a person or a family from being poor.
Why are we working to earn money in the first place? To have the money to provide the needs of our loved ones and buy whatever we want, right? I am sure that we all don’t want everything that we worked hard for be sold for a lesser value because we had it on a “Rush Sale” when we urgently need a big amount of money. These have already happened to some of our fellow Filipinos when they were hit by life’s uncertainties.
What are these uncertainties anyway? Events that we don’t want to happen but may still happen to us like getting critically ill. Heart attack, cancer, and stroke are the top 3 critical illness here in the Philippines and usually requires a minimum of P500,000 for the total cost of treatment. You definitely don’t want all your savings go down the drain for trying to recover from an illness. Other uncertainties include getting into an accident, being disabled, and not being able to work anymore. When any of these happens, are you financially prepared to cover for the cost? If you cannot work anymore, who will earn the money for you and for the people who depends on you financially? What will happen to your dreams? Will they still become a reality? Will you still be able to travel the world, to buy your own house and car, to send your kids to their dream college?
It will definitely be wise to secure a comprehensive (complete) insurance plan with income protection in case of critical illness, disability, and accident. This will complement your existing health card or HMO (Health Maintenance Organization). You can have it as traditional insurance (insurance only) or you can opt to avail VUL (insurance with investment) where your money is also invested in stocks and bonds that gains interest higher than banks over time.
Emerging Rich TIP: Protect yourself as well as your family from the heavy financial impact of life’s uncertainties like death, critical illness, accident, and disability. Have yourself insured while you are still young and healthy. Life insurance is purchased with good health not just with money.