We tend to believe that savings are enough to be financially stable.
But if you look at life at a practical perspective, savings alone is insufficient especially if you are aiming for financial freedom.
That is why insurance companies exist to help.
Insurance provides financial safety net that helps you take care of yourself and your family when you need it the most.
Here are top reasons why insurance is essential.
No one knows what the future holds.
Life has a way of throwing surprises at you when you least expect it.
Accidents and disasters can happen anytime and if you’re not sufficiently insured it could leave you financially bankrupt.
Insurance offers a payout so that if an unexpected event happens to you and your family, you can still continue to move forward.
A Tool for Forced Savings
Life insurance plans manage your savings by allocating funds in the form of premium every year.
At the end of the policy term, the policy owner can get a lump sum payout that will result in great wealth.
Peace of Mind
Live a peaceful life by managing risks in advance.
When you have life insurance you can face life every day with peace because you know that if something happens to you, your family’s financial security is covered by insurance.
The following scenario is for illustration only to give insights of how important is insurance.
It is not based on an actual event.
Miggy is a family man.
He didn’t believe in insurance but he’s a good saver.
He saved 20% of his monthly income.
At age 40, he suddenly got seriously sick.
He was admitted to the hospital and got flooded by hospital bills.
Miggy then had 2 million savings in his bank account.
But his hospital bill in total was 2.5 million.
Miggy was discharged eventually but left with nothing in his savings and debts to pay.
Miggy couldn’t get back to work anymore and he still had to continue his medication so his wife had to work and his 2 daughters had to stop college to help sustain their needs.
Now imagine if Miggy had insured himself.
His hospital bills would have been covered by the insurance and his 2 million savings could’ve been used instead for his daughter’s schooling and other necessities.
Life would have been different for his family.
Now its up to you to decide for your life.
Would you protect your family in advance or regret at the end?
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