Buying life insurance can provide security and relief during unexpected financial emergencies, and even help you meet your financial goals.
However, it’s important to research. There are many types of life insurance and a roster of insurance companies you can buy from. This list will give you a clearer idea of your options so you can confidently pick the right plan for your needs.
1. Match your life insurance policy with “key moments”
Your life insurance policy should align with your current financial needs and your personal and family goals.
Not sure where to start?
Think of the key moments in your life. These are big changes or milestones that can affect your income, expenses and overall financial stability.
During those critical times, buying life insurance can help you build or protect your assets. For example:
- Building Your Wealth. Young professionals can jumpstart success through early financial management. You don’t need to wait until you have a very large income or reach a certain age—it's never too early to start! Your future depends on how well you invest your time and money. Consult a financial advisor or a bancassurance sales executive to find the right options for you, based on your personal financial status, risk tolerance and goals.
- Getting Married. Marriage is one of life’s biggest milestones. It’s important for you and your partner to plan your finances together, which includes managing your household budget and setting financial goals. Learning how to have healthy conversations about money – from saving for a trip or buying life insurance –- is one of the crucial steps to a successful marriage.
- Taking Care of Your Family. You want your child to have a bright future. Look for life insurance coverage that meets the needs of your growing family. It can help you pay for unexpected medical expenses, save for college tuition or build a legacy for them.
- Working abroad. Being an OFW is a big sacrifice. You live and work in a foreign land, away from your family and friends. Don’t let your hard-earned money go to waste—make a smart investment in your health and your future. The right life insurance policy can help you save for your dreams, pave the way for an early homecoming, and even become a source of funds in your old age.
- Planning for retirement. Buying life insurance can help ensure a happy and comfortable retirement. Some insurance plans can accumulate cash value which you can use as a source of income. Others can cover medical expenses, including treatment for critical illnesses and other serious health issues, so you can meet your healthcare needs without depleting your savings.
- Running a business. Insurance can help business owners protect their most important asset: the employees. You can build a comprehensive health benefits program, offer affordable life insurance that employees can voluntarily get for their families, and get protection for workplace or work-related accidents.
2. Know the unique advantages of different insurance policies
There are different types of life insurance. While each provides protection, they come with distinct features and unique advantages.
- Traditional life insurance has no investment element and covers you as long as you are able to keep up with the premiums.
- Term life insurance has a specific end-date — whether it’s one year, five years, 10 years, 20 years, or 30 years.
- Whole life insurance remains in effect for the rest of your life, so your dependents are guaranteed a payout no matter how old you are when you pass away.
- Variable universal life insurance invests a part of your policy in different investment vehicles such as stocks and bonds. However, you’re not guaranteed a fixed interest rate.
Your financial advisor or Bancassurance Sales Executive (BSE) can further explain the pros and cons of each type of insurance policy – including policy's duration, coverage limits, and associated costs like premiums and deductibles.
This can help you pick the right policy for your needs, budget, goals and personal risk factors.
3. Enjoy the benefits of life insurance while living
Buying life insurance protects your finances and secures the future of your family. Beyond providing risk protection, certain policies offer additional financial benefits such as cash payouts in the event of an accident or critical illness.
And with the BPI AIA Wellness Series, you’re not just investing in your wealth, but also your health. This is a range of insurance products powered by AIA Vitality – a program that encourages you to lead a healthy lifestyle and rewards you for it. You also get benefits such as additional life insurance coverage and premium discounts and incentives from partner establishments.
