I had a little conversation with my friend last night over the phone. Catching about how's life going on, particularly in terms of our work. And he ask me this questions, how do i see myself 20 years from now and do i still want to work even at the age of 45 or 50... wow! hypothetical questions, that needs me to have a second thought. How and what really would be "ME" 20 years from now??? grrrhhh!.. That leads the conversation open to the "Insurance things", but sad to say... Globe network was down, connection was cut... PAK!
But, yes! I agree that we need to plan a head of time. Personally, if I have a choice, and God would allow me, I don't want to work anymore at the age of 45 up. With that age, i want also to enjoy the fruits of my labor.
Since now that I'm employed and one of our benefits is, 24 hours life insurance. That is why I'm not mindful with this matter. Plus the factor of being single... I'm always on the go ... hehehe! But because of that conversation, it makes me think to be conscious enough with the future especially in terms of my financial aspects... that leads me to do some research and here is what I got...
This is from Answers.com
Advantages of Life Insurance*
Risk Cover - Life today is full of uncertainties; in this scenario Life Insurance ensures that your loved ones continue to enjoy a good quality of life against any unforeseen event.
*
Planning for life stage needs - Life Insurance not only provides for financial support in the event of untimely death but also acts as a long term investment. You can meet your goals, be it your children's education, their marriage, building your dream home or planning a relaxed retired life, according to your life stage and risk appetite. Traditional life insurance policies i.e. traditional endowment plans, offer in-built guarantees and defined maturity benefits through variety of product options such as Money Back, Guaranteed Cash Values, Guaranteed Maturity Values.
*
Protection against rising health expenses - Life Insurers through riders or stand alone health insurance plans offer the benefits of protection against critical diseases and hospitalization expenses. This benefit has assumed critical importance given the increasing incidence of lifestyle diseases and escalating medical costs.
*
Builds the habit of thrift - Life Insurance is a long-term contract where as policyholder, you have to pay a fixed amount at a defined periodicity. This builds the habit of long-term savings. Regular savings over a long period ensures that a decent corpus is built to meet financial needs at various life stages.
*
Safe and profitable long-term investment - Life Insurance is a highly regulated sector. IRDA, the regulatory body, through various rules and regulations ensures that the safety of the policyholder's money is the primary responsibility of all stakeholders. Life Insurance being a long-term savings instrument, also ensures that the life insurers focus on returns over a long-term and do not take risky investment decisions for short term gains.
*
Assured income through annuities - Life Insurance is one of the best instruments for retirement planning. The money saved during the earning life span is utilized to provide a steady source of income during the retired phase of life.
*
Protection plus savings over a long term - Since traditional policies are viewed both by the distributors as well as the customers as a long term commitment; these policies help the policyholders meet the dual need of protection and long term wealth creation efficiently.
*
Growth through dividends - Traditional policies offer an opportunity to participate in the economic growth without taking the investment risk. The investment income is distributed among the policyholders through annual announcement of dividends/bonus.
*
Facility of loans without affecting the policy benefits - Policyholders have the option of taking loan against the policy. This helps you meet your unplanned life stage needs without adversely affecting the benefits of the policy they have bought.
*
Tax Benefits-Insurance plans provide attractive tax-benefits for both at the time of entry and exit under most of the plans.
*
Mortgage Redemption- Insurance acts as an effective tool to cover mortgages and loans taken by the policyholders so that, in case of any unforeseen event, the burden of repayment does not fall on the bereaved family.
Folks, having all this advantages that Insurance company are offering, it's also a little bit risky because of bankrupt history of some Insurance company. We need to be careful enough, particularly in choosing the Insurance company we want to join with. Its history or the company profile, who and what mostly their clients are, other business they are inline with and other things that concerns us that we know relevant to the decision we're going to make. So that the money we work hard to put to them will not be wasted, so we could really enjoy it in the years to come. (*-*)
"If you want to harvest something tomorrow, plant NOW"
