Getting life insurance can change your life years forward. Likewise, changes in your life can affect the type of life insurance that you should get. You know that life insurance is a good idea but how exactly do you get started on getting one and what piece of the vast information pie should you digest first?

Here are some pointers to help you understand life insurance better, one idea at a time.


Why you should get life insurance

  • It protects your income
    Life insurance is important, especially if you are the breadwinner. If something were to happen to you, this will serve as a means to provide income to the people you left.

  • It gives peace of mind
    Having life insurance can give you peace of mind knowing that the people who matter to you are financially protected, as long as you put them as your policy’s beneficiaries.

  • It protects your money
    Since we all have the intention to grow our money, it should also come naturally for us to think that the money we worked for should be protected from getting lost as well.

  • Because health is wealth
    Spending on your health, once it gets really bad, can drain the wealth you worked hard for. Having life insurance can help you cover hospitalization costs, and with the right riders, can also give accident & disability benefits.

Hacks to spend less on premiums

  • Get it while you’re young
    You might be asking why you would spend on life insurance when you are far from needing it because you’re young. Well, this is because age is one of the factors in determining the price of premiums, because the older you are, the more expensive it gets.

  • Change your lifestyle
    One of the factors that could affect the cost of your premiums are health and lifestyle. For example, smokers pay higher premiums because smoking makes them more prone to health risks than non-smokers.

  • The earlier, the better
    Technically, responsibilities and spending grow to a higher amount as time goes so it makes sense to choose the present when expenses are likely to be less heavy. Can you imagine the day when you have to pay for diapers, tuition, and a mortgage? Adulting happens and it entails money so get yourself coverage as early as you can. The important thing is not to postpone.

The versatility of life insurance

  • Think of it as saving, not as spending
    Instead of seeing the act of paying premiums as an expense, why not interpret it as a means to save for a future fund? After all, a whole life insurance allows you to build up cash value over time that you can also tap any time.

  • It makes your money inflation-proof
    The value of money today will not be the same years forward. Remember when the minimum jeepney fare only costs ₱5? Now, you won’t get anywhere with that amount. That, folks, is inflation. The beauty of insurance policies is they have a feature in which the value of benefits increases to keep up with inflation.

  • You can use it to pay off debts
    Your policy can be used to pay off any debts that you leave behind so that these debts would not be a financial burden to your family.

  • You can use it to provide for your loved ones
    Life insurance can ensure that your family will still have money for their needs like food and tuition even if something happens to you.

  • You can use it for your retirement
    Your life insurance can be used to supplement your retirement. In fact, we have different life insurance products for people’s retirement needs. See them here.

  • It can protect your business
    If you own a business, life insurance can cover your financial obligations so your hard work doesn’t go to waste in case things go awry. If the nature of business is of partnership, then both parties should have coverage. That way, if one of you passes away, the other isn’t left with a heavy financial burden.

  • You can use it for your “final expenses”
    Let’s face it, funerals can be pricey. A life insurance policy can make sure that your final expenses are paid for so the people you leave behind will not have to worry about money at an already stressful moment.

  • It can pay for estate tax
    Before we leave the world, we want to make sure that our assets are transferred to our rightful heirs. For this to happen, our heirs will need to pay for estate tax so they could gain the right to your assets. Your insurance policy can be used to pay for estate tax to make sure that your heirs will not get hit with a big tax bill.


Factors that are smart to consider

  • Think of the amount you can comfortably shell out
    Consider your income. There is no point hitting an exorbitant coverage if paying for high premiums will not be sustainable in the long run.

  • Opt for a comprehensive coverage
    You can protect yourself against a range of risks by getting a comprehensive life insurance policy that can give you hospitalization and disability benefits, when you pair it with the right rider for you.

  • Ask about premium structure options
    Stepped premiums are premiums that increase as you grow older. Level premiums remain the same until you reach the end of your term. For level premiums, the initial payments start low but they gradually increase each year until the end of the term. For stepped premiums, while your premiums start higher, as you near the end of the term, the cost decreases.

    Choosing a premium structure, stepped or level, will depend on your financial situation.

  • Know that premiums are variable
    It’s not a fixed template for everyone. Older people, smokers, and those who have a high-risk job pay a higher premium. There are several factors that determine the cost of life insurance but a general rule is you will pay less the younger and healthier you are.

The selection process


  • Choose a reputable institution
    A good place to start from is to choose a company that has established itself to be secure and reputable. This will give you the peace of mind that the money you worked hard for is being managed well.


  • Consult with a financial advisor
    A financial advisor is not just there to sell you insurance and investment products. A good advisor will help you look into your financial situation so you can have a financial plan to help you realize your money goals like a fund for education, your first home, or your retirement.

    A good advisor will take into consideration your financial situation, including your income capacity, appetite for risk, your financial assets and obligations, and your personal details like lifestyle, age, marital status, and dependents, among others.

  • Assess future possibilities with your partner
    If you have a partner, take the time to talk about how each of you would financially cope with paying premiums and other financial responsibilities if the other passed away. By discussing this together with your advisor, you will have an idea about how much coverage you need.

  • Don’t be discouraged by the application process
    It is part of the process to be asked to disclose your salary, smoking habits, and medical history. This information is needed to create an accurate picture of the risk you pose, which will determine your premiums. It is important to be honest about the details because inaccuracy on any of the relevant details can risk your policy to be void.

  • Feel free to compare
    It’s always a good idea to compare different products to know what is best for you. Just make sure to ask an advisor to be briefed thoroughly. Just make sure that you don’t take too long because the premium will naturally be costlier as you get older.

When you already have an insurance

  • Review your policy on a regular basis
    Your needs will change as you go through different life stages. The policy you took when you were a fresh grad is likely not enough after 10 years when you have a family depending on you. By reviewing your policy with your financial advisor, you can check if you will need to have another coverage to fit your current situation.

Life insurance is an important part of self-care that can help you prevent getting in serious financial trouble in the future. This may not be the top purchase that immediately gratifies you but I’m sure this is one of the choices your future self will thank you for.




Pax Naguiat

Pacos love language has always been service. He’s a hospitality major that discovered his love for taking care of people. He brings his love for this as well into being a financial advisor. On his spare time he enjoys traveling, trying new restaurants and being a home cook.