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Top 6 Life Insurance Myths

Posted October 5th, 2016 in Articles by Corporate Communication

Hey, #PrudentPinoy! Did you know that the first week of October is Life Insurance Consciousness Week in the Philippines? In 1997, recognizing how life insurance contributed to providing financial security to the Filipino family as well as its role toward building a stronger economy, President Fidel V. Ramos signed a declaration that this week be used to promote awareness about life insurance and its benefits.

 

21 years later, the Philippines is still considered under insured. But every year, Life Insurance Consciousness Week reminds us to continue promoting awareness of attainable financial security through life insurance.

 

What better way to celebrate and promote awareness than to debunk a few wrong ideas associated with Life Insurance and remove the stigma surrounding it? Below are some of these misconceptions and why they’re not necessarily always true:

 

image source: bossfight.co

1.)  It burns a hole in the pocket

Life insurance is not at all times expensive, although it could be. But in every policy you are purchasing, always keep in mind that your coverage specifications should fit your needs and expectations. How much it will cost will largely depend on these considerations. It is also worth noting that life insurance premiums are cheaper when you purchase it at a young age than when you get it later on in life, so it is highly recommended to plan your financial decisions as early as possible.  

 

2.)  It is just an additional expense

More often that not, people think that life insurance is just an added unnecessary expenditure to their already seemingly-unmanageable list of payables. What’s more, its benefits are not often readily enjoyable by the policy holder. While the latter is somewhat true because of the intangible nature of the product, we have to realize that paying for life insurance also avails us the peace of mind we can’t otherwise afford without a policy. Paying for life protection may be bothersome at times, but it is nothing compared to the grief you or your loved ones could go through should anything unfortunate happen to you.  

 

3.) It is only for people with families and the breadwinners

Heads of the family and breadwinners are not the only people that need Life Insurance. For young Prudent Pinoys who don’t yet have dependents, having a life insurance policy can be of great help to those you will leave behind in case something happens to you. The pay out can take care of your hospital bills, debts, and even serve as a legacy that you can leave to your family.

 

4.)  You can’t refund your money

Even if a life insurance policy doesn’t have the feature a bank savings account does which allows you to easily withdraw your deposited money at any time you want and need, it is important to note that once a policy is in-force, it automatically and continuously offers you and your loved ones financial protection 24/7. Some policies earn cash value which you can loan or borrow after some time to take care of unplanned expenses and emergencies. This feature of a life insurance policy, when used, will not cease your coverage.  

 

5.) You don’t need multiple coverage

Suppose you are already protected by your employer as part of your employee benefits (Great!), the question is: Do you still need another life coverage? Most likely the answer is you do. Employer-provided life insurance doesn’t always equate to your family’s current and future financial needs. Also, your insurance coverage ends when your employment does. So it’s prudent to have at least one other life insurance policy other than what your employer provides. While having more than one coverage may not sound reasonable to everyone, having the peace of mind that your loved ones’ future is secure by getting a separate life insurance policy sounds very reasonable indeed.

 

6.) You’re better off investing or depositing in a bank

Don’t put your eggs in one basket is what they always say. Having different financial portfolios that complement each other is always a good thing and makes for a financially responsible Prudent Pinoy. This means that having life insurance alone or having a savings account alone may not possibly solve all your financial woes. Explore your options and find out what would be best for your lifestyle and put your money where you think will best protect your and your family’s interests.

 

For more inquiries about life insurance, please don’t hesitate to call us at (02)902-2300. Consider Philippine Prudential’s Life Insurance plans today, and take a step towards financial security.

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