Four hazards of a Person’s Life: the importance of Life Insurance.
As we
get older, we begin to understand the importance of income. It is essential
that we earn it to support our families. While a man is strong and healthy, he
still has the financial means to provide for his family and dependents. As long
as he can continue working and earn an income, his family will continue to have
the basic needs met.
While a
man is healthy and strong, he still has economic value to his family and
dependents. As long as he can keep working and earning an income, his family
will continue to have the comforts and needs that they have.
Four Hazards of Life: Threats to Continuity of Income.
Premature
Death.
A premature death is when a person dies before he or she can fully actualize his or her earning power. For instance, if a husband dies at age 32 and wants to work until he is 65, the family would not be able to provide him with the income he expected to receive during his lifetime.
Disability.
When a person is totally disabled, he or she cannot perform the material or substantial duties that he or she has been trained to do. He or she can also be partially disabled due to an accident or sickness.
Critical
Illness and hospitalization.
The cost of critical illnesses in the Philippines will definitely drain the family income. Without protection, the family will have the hard time coping with the desperate life condition. Instead of focusing on healing of the body, the ill person will have to torture himself/herself to look for source of fund to pay off bills.
Retiring
as Old Age without money.
This is the time when a person stops being productive due to a decline in mental and physical vigor. Retiring without money is a fact of life in the Philippines.
How to
solve the problem of losing continued income for the family?
This
method of saving and investing is done by individuals who are more concerned
with providing a future source of income. The person who achieves this can rely
on his or her current income for a long time to accumulate funds. It is not
guaranteed that he or she will live long enough to accumulate the amount
desired. Life insurance is the most advantageous way to achieve financial
security. It is usually not required for other savings and investment plans.
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Disclaimer
The Author is advising readers to consult with your respective Financial Advisors before venturing into any investments. Investing your money is dependent on your goals and your risk tolerance. You should know the risks and rewards of investing before you actually do the same. The illustrations above are for educational purposes only and any risks or losses that you may incur are imputable to your respective decisions.
The author does not in any way provide a guaranty as to the effectiveness and quality of the products and services that are featured in this blog. The products and services were advertised based on personal experience and product and service reviews that the product/service received.
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