Why Parents Should Get An Insurance

March 07, 2024

In this article, I delve into the details of why it's important for parents to get an insurance policy.

Insurance is possibly one of the best ways to get financial protection for oneself or their family. However, it was only fairly recently that people began to see the importance of getting insurance. Before that, insurance is often viewed as unnecessary expense and you would often hear people say, “I don’t have immediate need for it, why should I get insurance?” or “I’m still young and healthy, why should I get myself insured?” or “I’m not going to benefit from my insurance money, I should just enjoy my earnings while I’m alive.” Not only that, but insurance was also seen as morbid because it was like planning for your death plus you are just giving your loved ones a reason to wish for your demise in order to get your insurance money. It’s also worth mentioning that the approach of old insurance agents to use death or getting people paranoid as a reason for getting insurance have not been an effective sales strategy.

Why Parents Should Get An Insurance

Why Parents Should Get An Insurance


    Recognizing the value of insurance


    Thanks to educational campaigns and the popularity of social media, people have begun to realize the importance of getting insured. At the core of it, when you get insurance, you are essentially transferring the risk of financial loss to another entity (the insurance company). As such, when something untoward happens to you (such as getting critically sick or if you pass away), the money that you will lose from your inability to work will be given to your beneficiaries (the death benefit).

    At the very least, the money that will be given to your beneficiaries would be equal to your sum insured (the amount that the insurance company is obligated to pay you). In most occasions, however, the money that will be given to your beneficiaries is a lot higher than the minimum sum insured.

    Furthermore, with the introduction of different types of insurance products in recent years, people are sure to find a product that will cover their needs such as health, education, protection against accidents, and even insurance with investment. Depending on your chosen insurance policy and coverage, you can customize it to fit your budget and payment term.

    Of late, insurance, particularly microinsurance has been made available in online channels and even online shops, making it more accessible and more affordable to more people. Imagine this, you are able to buy insurance for as low as P100 and you already have protection against accidental death and critical illness for as much as P25,000 coverage for one (1) year. If you are still not convinced, you may check it HERE.

    What benefits can parents get from insurance?


    When you are a parent like me, your days are most certainly filled with thoughts about your children’s future such as their education and being able to provide for them in case something untoward happens to them. Aside from having job security and investing, one of the best ways to protect your finances is getting insurance.

    Here are the reasons why it’s advantageous for parents to get insurance:

    1. If you get an insurance with critical illness coverage, you can file a claim when you get sick to cover your medical treatments and even during recovery.
    2. You’d have a fairly large amount of money to leave your family if something happens to you, hence, ensuring that hey get financial support even if you are gone.
    3. You can also get an insurance with education plan for your children. This type of insurance is the anticipated endowment type in which you will get a sum of money starting at your child’s particular age.
    4. If you have an extra sum of money, you can also buy an insurance with guaranteed yearly payouts if you want it to grow more as compared to putting it in a bank.

    Epilogue


    Those are just some of the benefits of getting life insurance. I always believe that having insurance is a wise financial decision because of its many benefits, hence, giving parents like me great peace of mind. It’s easy to access these days and you can also find a policy that is suited to your payment capacity.

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