5. Your Family's Medical History
Some types of life insurance in the Philippines, mostly those with critical illness benefits, cover medical complications. Thus, it’s best to apply for a life insurance policy with medical coverage.
Take note, though, that when you apply for life insurance in the Philippines, you will need to undergo a medical exam and will be asked about your family’s medical history. You may have to pay a higher premium, but remember that the payout you'll receive will be much higher than the total amount you paid in premiums.
You should get life insurance if your family has a history of serious illnesses like cancer, diabetes, and heart disease. As much as you don’t want to think about it, having a bad medical history increases your chances of experiencing complications as you get older, making it more expensive for you to get life insurance later on.
6. Your Lifestyle
Your habits come into play when deciding whether to buy life insurance or not. One of the first questions usually asked when someone applies for life insurance is, "Do you smoke?" Smokers tend to pay higher premiums because smoking takes a major toll on one's health and can lead to a variety of health problems.
Are you into mountain hiking, diving, or car racing? Hobbies that are considered high-risk physical activities can drive your premiums up, as engaging in them increases the likelihood of an accident or death.
At the same time, healthy habits such as exercising regularly and having a proper diet can help lower your insurance premiums. This is because you are less likely to get sick with an active lifestyle.
However, despite feeling invincible right now, you'll never know what will happen to you decades down the road. If you have sufficient emergency funds and can afford the monthly premium payments, consider getting life insurance and take advantage of the lower premiums for those keeping a healthy lifestyle.
You should get life insurance if you're more susceptible to diseases because of your unhealthy habits (e.g. smoking, alcoholism, sedentary lifestyle, etc.). When you're diagnosed with an illness covered by your insurance policy, receiving your payout decreases the stress of having to look for alternatives to cover your medical costs.
7. Whether You Have Dependents or Not
This is the most obvious reason to get life insurance. If you have a number of people depending on your income for financial support, life insurance is the best way to protect them. Your beneficiaries could be your children, spouse, siblings, and/or elderly parents.
Assets, such as real estate and bond and stock certificates, are subject to estate tax. Before your assets can be distributed to your heirs, they'd have to pay a huge estate tax. If you own a house worth ₱10 million, the estate tax would cost them ₱1,215,000, and paying for this may be difficult for your loved ones.
If you have life insurance in the Philippines, your dependents can use the payout to pay for estate tax. Even better, unlike assets such as real estate and other investments, proceeds from a life insurance policy are not subject to taxes.
Life insurance protects your family in the future. Having dependents is one of the best reasons to get life insurance.
You should get life insurance if you have dependents who rely on your income. If you don’t have any yet, you can postpone getting life insurance and invest your money instead. However, take note that premiums only go up as you get older.
8. Your Financial Goals
Not only do your loved ones receive protection when you get life insurance in the Philippines. It also helps you protect your precious assets as well.
Do you own any major assets such as a house or car? With a life insurance policy, you can protect your hard-earned assets against foreclosure or repossession by the lender when the unexpected happens.
For example, if you're injured from an accident that prevents you from earning income to pay for your monthly mortgages, the life insurance benefits you'll get can help you partially or fully cover the payments.
You should get life insurance if you have any high-value asset that needs to be protected against the financial burden resulting from death or permanent disability.
The decision on whether to get life insurance or not varies from person to person. It's based on your needs and your financial standing.
Ultimately, life insurance protects your loved ones from financial difficulties and ensures they're taken care of when you're gone. However, note that life insurance is mainly for your dependents, so before you apply for life insurance, make sure that you're also saving and investing for yourself. If you’re fresh out of college and living with your parents, you may not need life insurance yet.
Before you learn how to get life insurance in the Philippines, it’s best to go "window shopping" first. Prices and coverage will vary depending on the policy. So, do your research first before you sign the papers.