Insurance Planning is something that everyone needs to do at the earliest possible time. It is a vital element of any personal financial plan and is especially important for heads of families and those whose current income are supporting a number of dependents.
At its very core, insurance planning is meant to protect you and your family's financial well-being from the potentially heavy costs associated with unexpected events such as illnesses, disability, accidents and death.
Insurance Planning attempts to put in place an income flow that would replace the income that you are providing for your family in the event that you die or are otherwise rendered unable to work. It is thus one of the most important financial planning activity that you can possibly perform.
The Life Insurance Policy is at the very center of Insurance Planning for individuals. A life insurance policy provides a cash payment to your surviving spouse, children and other dependents in the event of your death. The cash is meant to provide them with funds necessary to help maintain their current standard of living, or to help pay for tuition expenses for your children, or to pay for the estate taxes on your assets.
A traditional life insurance policy typically offers a guaranteed cash benefit to your loved ones in the event of your death and also carries with it a cash value that you can borrow against or even cash-in if you need the money. Term insurance costs a bit less, but is usually in force only for a specific duration. For many families, a combo of whole life and term insurance may provide for current and future needs.
Nowadays, many life insurance policies are linked to financial instruments like stocks and bonds. These are called VUL Life Insurance policies or Variable Universal Life Insurance (also sometimes known as Variable Unit-Linked Insurance). While there remains a guaranteed cash payment upon death, these VUL Life Insurance policies attempt to complement the death benefit with a more robust living benefit component by enhancing the Fund or Cash Value through investment placement.
Why You Should Get Life Insurance As Early As Possible
There are several compelling reasons to get life insurance as soon as possible:
"If there is anyone dependent on your income - parents, children, relatives - you need Life Insurance."
VUL Insurance Product
Protection for your family while growing your money through investments. Payable for 10 years.*
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Edwin T. Bartolome
Financial Advisor and Certified Investment Solicitor
Authorized by the Insurance Commission to act as an Insurance Agent.
For inquiries and free assistance on Personal Finance, Investments, Estate Planning and other Money Matters, you can reach him at:
Baobab New Business Office
Sun Life Financial
6/F BTTC Centre,
288 Ortigas Avenue
Greenhills, San Juan City
Tel. No. 7-719-3958
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