PinoyShares: “My life insurance gave me peace of mind”

A young professional shares how she started planning her financial goals

I was 25 years old when I felt like I needed to plan out my financial goals. I was earning a bit more than enough to treat my family from time to time and give back a portion of my salary to my parents as well. Then my office mate told me to start getting a life insurance for protection and investment. I decided to learn more by talking to his financial advisor.

I was quite shy to talk about my finances because even if I was earning a bit more than enough (~PHP16,000), I had no savings. When he explained to me that if I keep about 20% of my income (PHP3,000) every month for 15 years, I'll have around PHP785,000 when I hit 40. At the same time, my future family will be secured with PHP1.4M if ever God says "time's up". It was like hitting two birds with one stone - if I die early, my love ones will still be provided or if I live up to 40 (which is very likely), I will have almost a million pesos

I can simply save PHP3,000 monthly and put it in the bank but I knew myself well. I will just end up spending it. So I have to make a commitment with someone/something to make me keep the money monthly. Also, if I put the money in the bank, the interest rate is just 0.5%. If ever I die anytime, that money in the bank will instantly be frozen and will be subject to tax. So better put it in a life insurance policy to be invested in stocks and be accessible to my family if ever I die. 

After much thought, I got myself insured.

Fast forward to three years after, I was married and was about to give birth. I was quite fearful of what might happen during labor. I’ve heard of stories (and watched it a couple of times in telenovelas) that mothers may die while giving birth. Then, I remembered my life insurance. I told my husband where my policy book was so if ever something happens to me, he would know where the documents were. I felt assured that my child will be provided no matter what. My life insurance gave me peace of mind. 

Well, I survived giving birth. And I just got another life insurance policy for my future and my family's protection. 

*Notes/definitions:
FUND VALUE - withdrawable amount of money invested in insurance
DEATH BENEFIT - the amount of money that my family/beneficiaries receive if I die
CRITICAL ILLNESS BENEFIT - the amount of money that I will get if I am diagnosed with a critical illness (listed in the policy)

If you also want to secure your future, request for a life insurance proposal now. Just send a personal message through our Facebook page: https://www.facebook.com/pinoywealthbites or e-mail: leonard.c.tome@sunlife.com.ph.