Thoughts on INSURANCE and HOW TO BUY A PEACE OF MIND

I know the title seems kind of absurd. Can we really buy a peace of mind?

That’s what Insurance companies are here for. We “buy” a plan from a reputable company and in return we get ourselves some peace of mind just in case something unexpected happens to us, our cars, our dream houses or to our jobs we thought will provide long term security.

Most of us who have been exposed to the term “insurance” have probably heard that insurance companies don’t sell products, they PROVIDE SOLUTIONS. It’s indeed one of the catchy lines insurance agents used that have brought in the added sales. Solutions to future unexpected events that might be costly or be a burden to us or to our loved ones.
Many Filipinos still doesn't have insurance policies. Maybe it's because of his lack of knowledge or know-how or maybe because of the industry’s almost “beat up” image that some people are afraid of it. Still,  I strongly suggest you buy one especially when you’re just starting out and you still don't have so much expenses.

“Buying” is just a term usually used in getting yourself an insurance. But in it’s real sense, you don’t “buy”, instead you “save” on it. Meaning, you’re just giving your money to the insurance company in the hope that when you need it, you‘ll have more that what you gave. Just like depositing your cash in a bank, only this time, you won’t be able to get it back easily because terms and conditions  apply. But of course, the interest is a lot higher than the bank’s.

Steps in getting an INSURANCE.
In this case, let me cite Pension Plan as an example.

1. Talk with your trusted insurance agent. Discuss your needs and study the available products presented. Each of us have different needs, one’s plan may not be suitable to others. Young people are advised to take advantage of their greatest asset which is TIME. If you're young, time is on your side. The younger you are, the lower the price installment you'll get. From there, study your budget.

2. Stuffs you need to think about (ex. Pension Plan): paying capability, paying period (you can choose between 1-10 years), maturity period, modes of payment (monthly, quarterly and semi annual), coverage of insurance benefits, plan’s features like a forfeit free, grace period, beneficiaries, interest rate (based on company’s past performance)

Fill out the form given. Do make sure you understand the conditions before signing out.

3. Be ready with your payment. If you have a good amount of cash, I suggest you pay yearly instead of monthly, quarterly or semi-annual. You’ll save money in choosing the first option. If you’re somewhat anxious in giving away your first payment to the insurance agent, there are other available payment options today like bank deposits or you can go to their branches and personally pay there. TIP! If you want to save more money when getting an insurance, why not apply to be an insurance agent yourself? Instead of having the insurance agent take the commission, you’ll get a hold of it yourself! It’s like having the 10-40% of your yearly plan payment be returned to you! Money saved err, in that case, MONEY EARNED!

4. Secure the receipts, especially if you’re still waiting for the contract. If the contract is given, take time to read and understand the term and condition, save important contact numbers. Always keep in track of your payment’s schedule to avoid delays and problems.

Cheers to your first INSURANCE PLAN!