What's your reason for getting life insurance?
People get life insurance plans for various reasons. Because of this, companies offer different packages to address the needs of different households. As mentioned, reflecting on the purpose of your plan can help you figure out which policy will work best for you and your spouse.
To give you some clarity, here are the common reasons why Filipino couples get life insurance.
"My spouse is the breadwinner of our extended family."
Filipino families are generally large and extend beyond the couple and their children. Apart from household expenses, your partner may also have the responsibility of caring for less-fortunate relatives. In the event of death, disability, or illness, he or she may draw upon the proceeds of the coverage to support family members.
Related: What Breadwinners Need to Know About Buying Life Insurance
"I'm in charge of taking care of my aging parents."
If your partner is supporting his or her aging parents, you can expect medical expenses to come in. If you end up unable to earn due to an accident, a life insurance plan can help you shoulder your parents' medical expenses. A health insurance plan like the Critical Care 100 can also help cover hefty medical bills.
"We plan to have kids in the future."
A life insurance plan not only acts as a safety net, but it can also turn into a savings fund. If you plan to have children in the future, having a life insurance plan will allow you to cover their expenses accordingly.
In case they need to pay off tuition, settle inheritance tax, or deal with other essential payments, drawing from your insurance plan can provide financial leeway in difficult situations.
"We want to attain financial security early."
The price of a policy depends on the age and health condition of the insured, plus the type of coverage the insured desires. Simply put, young and healthy individuals are entitled to cheaper premiums compared to older adults. This is the reason why many couples who are in the early stages of their marriage get plans immediately.
"We want to pay off any remaining debt in case of death."
As the years go by, you and your partner may accumulate debt due to personal or business expenses. In case of their untimely death, getting a life insurance plan will allow you to pay off remaining loans or credit card bills.
Related: Debt Snowball vs. Debt Avalanche: Which Method is More Effective?