I cant help but repost this post by Yano125 from PinoyMoneyTalk.com Forum... This is so enlightening for those who doubt the insurance industry.... Why do you conveniently get insurance for your car or house and leave your own life uninsured? Read the post below and see why Insurance is so important...
Post by: yano125 on Jul 13, 2010, 05:42 PM
--------------------------------------------------------------------------------
Many Filipinos really don't understand how the LIFE Insurance Industry works. It is not your fault that you are not well informed about this.
I will be presenting Life Insurance Industry here and not the other industries. I do not even want to discuss the Pre-need or the banks.. UNLESS you point a shotgun to my head.... :hihi: Then I will be forced to say what little I know about it. just don,t pull that trigger....
Anyway.... The reason why the Life insurance industry is one of the safest investments here in the Philippines is because Our Insurance Commission which monitors The Life Insurance Companies here strictly and regularly monitors each and every life insurance policy that is accepted or sold by all Life Insurance companies here in the Philippines.
The Premiums we pay are monitored and a standard percentage of these premiums set by the Commission is immedietely olaced into a trust fund and not allowed to be placed in any investment of the company. This ensures that should there be a massive amount of claims when too many people die who have life insurance policies, then there will always be money to pay for the benefits entitled to the beneficiaries of the dead policy holder.
Many often or always think that the Insurance companies get a lot of your money and keep them as profit.
You will be surprised at how little of your premiums go to the fund that the Insurance company puts into investments so it will earn money for operating expenses, profit and of course the hundred fold cash benefit your beneficiaries get when you die.
Remember and understand that a 43 year old male non smoker who pays an annual premium of ONLY Php 7,000 per year is insured for Php 1million pesos. and this is doubled if he dies due to an accident. That is a Php 2 million benefit to his beneficiaries.
Now tell me if the insurance company is actually always earning from our Premiums. Now why do they go into this business????? They have studied the probabilities of the different segments of our society in terms of RISKS of Death based on gender, age class, occupational group, health hazards, hobbies, and sometimes even your family history. You will notice that in the questionaire you need to fill out when you get or apply for an insurance policy.
If you have not applied for a LIFE Insurance policy EVER, then you would not know or understand what I am presenting here. You are just attacking LIFE Insurance as a NONSENSE thing or a business of the crooks without really you understanding how it really works. I can present to you a lot of parallel stories and scenarios to prove a point.
I would suggest that you consult with a dedicated Life Insurance Advisor who would be willing to help you understand what Life insurance really is without selling you the product.
IMHO a true Life Insurance Advisor will help you first assess what you have and what you wish to have or dream of for your future and that of your loved ones. then he will help you see the different options on how you can obtain these or achieve these needs and wants.
NOW.... upon seeing the different options that you have, YOU and NOT him will decide
First if you want to accept the options he is presenting to you
Second, if you are willing to consider some of the options he has presented, then you should be the one who will decide which one you will choose. I would say that you should be wary of the "Advisor " who presents just a single product to you. Getting a life insurance is not a joke. I consider it a serious act in your life that you have to make a sdecision based on first knowing what you really need and what you can afford.
there is no point in getting a big policy and then not be able to continue paying for it. This just defeats the purpose of getting a life insurance.
Now who really is willing to sitdown and discuss what life insurance really is all about and what are the different options we have? VERY FEW Filipinos are willing to sitdown and really get serious about this.
Very prevalent is the bandwagon attitude and the pakikisama. The bandwagon attitude is Buying a policy just because someone you know gets one. The pakikisama is getting a policy just to give in to a friends pangunguilit that you buy a policy thru him. Both these scenarios increase the pool of policy holders who never really understood what policy they got.
And too many times, they end up getting not the best product for their needs and their capacity to maintain paying for. They finally end up giving up the policy and feel that they have been cheated by the Life Insurance company.
When infact , they were party to the loss they had to incurr.
The VUL... is actually a Term Insurance. It is supposed to be cheap. But the extra that is collected on the price is placed into an investment fund. This is a WARNING to Many of US. If you do not understand the Investment component of the VUL, then do not get a VUL. If you can not tolerate the RISKS of seeing your money temporarily diminish in value or permanently lose part of all of its value due to crash in the the market , then do not get a VUL.
If you just get a VUL just because you saw someone you know or idolize or admire has recommended this product , then you have ONLY Yourself to blame if the investment fails. Remember that INVESTMENTS entail RISKS. and RISKS can turn to LOSSES. BUT RISKS can also give better profits. HOWEVER , if you are not a savvy investor who understands the risks, stay away from the VUL. Get the traditional policies.
ALSO, NEVER get into any investments if you do not have many you can afford to lose or allow to stay in an investment for at least 10 years. This means you should never put money to be used for your living expenses into any investments. Investments may need to be left alone up to periods of even 10 years just so it does not give you losses.
***** I apologize if my posts are long. The details explaining the rudiments of Life Insurance cannot be explained well with short sentences. This is probably on of the reasons why many of us do not understand Life Insurance. This lack or absence of understanding leads to a BIAS against it. Again my apologies to all of you. I just had to share what I know. C'mon this is a free education. You may choose not to read what I write. you do not have to listen to me. And I am not selling you anything here. Just helping you understand what it is all about.
Posted on: Jul 13, 2010, 05:28 PM
--------------------------------------------------------------------------------
Quote from: mxherr5 on Jul 13, 2010, 01:20 PM
^
Ano po yung insurance company na ng sara at hindi
sinalo ng mas malaking insurance company?
Ang alam ko, wala pang nangyaring ganito
That is SO TRUE ..... Walang LIFE Insurance Company na nag sara or umalis sa Pilipinas na hindi binili ng iba pang Life Insurance company rin dito sa Pilipinas.
That means ALWAYS merong another Life Insurance company dito na bibili ng nagsasarang companya.
BAKIT KAYA????? Sa tingin nyo ba, bibilihin ng isang matinong kumpanya ang isang bumabagsak na kumpanya? Of course it will NOT. Sino ba ang gustong malugi. The reason na meron palaging kumpanya na willing to buy out another Life Insurance company is because alam nila na palaging may sapat itong pondo to pay off the potential claims ng policy holders nito.
Sa mga nalulugi or nagsasara na bangko or pre-need plan companies, palagi bang may another company na bibili ng nagsasarang bangko or pre-need plan company????? Sige... give me a name..... :yoohoo:
Ganyan katatag ang industriya ng Life Insurance dito sa Pilipinas.
Importance of Life Insurance by Chris Noth.
.
.
No comments:
Post a Comment