Insurance 101. The importance of life insurance

One of the important steps in being financially literate is understanding about insurance. Life insurance, health insurance or any other kind of insurance belongs to the building blocks of a firm financially educated individual. Today I will share valuable resources that can really help us understand the meaning and importance of being insured.

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I hope after you read this article and watch the videos below, you’ll have more knowledge and deep understanding about insurance.

We don’t purchased insurance yet

To tell you honestly, I still don’t have a personal life insurance purchase on my own. Me and my wife actually. Wonder why? This is because we are insured by our company.

Yes, one of the perks and benefits of being employed is a free life insurance covered by your employer.

In general, this is called group insurance. Group insurance in basic term covers the same terms and conditions in a group of people or all of the employees to a given company.

Here’s a snapshot of my insurance provided by my company.

Wait! I know I might confuse some other people. Some may react because we understand that we should never solely rely on this type of insurance (like the one’s we have) because we don’t know how long we can keep our job.

Uncontrollable things can happen that can lead us to lost of our job, recession or closure of the company. Meaning if we lost our job, we lost our protection.

Yes, we do understand those things. And thanks for reminding by the way. But I would like to explain that the main reason why we’re still not getting or purchasing life insurance on our own is because we’re still building our emergency fund.

If you read my previous articles, I strongly suggest especially to newbies like us to follow a system or steps in being financially literate.

And I believe that there’s another important steps we need to take before purchasing life insurance on our own. That is to create, follow and stick to our budget and build a solid emergency fund.

Once we’re done with those steps, we will consider buying life insurance on our own. We take one step at a time. For now, we will enjoy that benefit from our company while working toward our financial goals. And besides, it’s FREE!

The importance of being insured

Being insured is really important especially to the bread winner of the family. If unfortunate things happen, insurance can protect our love ones.

If you’re working on a corporate job, most likely you have a group insurance like what we have. But I remind you to check all the details, terms and conditions that it covers so that you are aware what you are being protected to.

Another importance of being insured is the peace of mind. when you have insurance, life, health, car or any other type of insurance, you are not worried with whatever may happens.

Insurance brings peace of mind that if something happens, we are confident that we can rely to something. We never know what will happen next, so getting insured is one of the best way to secure our future.

More and deep explanation of insurance from the experts

Alright, enough personal sharing. I admit that I’m also a newbie when it comes to insurance. I can’t fully explain (for now) all the details covering all topics about insurance.

But that’s not end there. Basic knowledge is enough to understand how things work. Aside from that, we are continue learning along the way and I’m sure time will come that I/We will have enough understanding all information about insurance.

We’re just taking small steps and that is enough to move forward.

To give us more understanding about insurance, please watch the video below from our Filipino financial advocate who are more knowledgeable on this topic. We can really learn a lot from this.

Please take note that I do not own this video, I’m just sharing them for the benefits of all.

https://www.youtube.com/watch?v=DWSfMd8vdeI

The video above is owned by WiseCash program of TGFI (The Global Filipino Investors). You can view their youtube channel here. Or join TGFI facebook group here.

I hope by now, I somehow provided some basic knowledge about insurance. This is just the start.

We will continue share valuable articles and resources to spread financial literacy to the Filipinos around the globe.

Let’s share financial literacy, one blog at a time!