5 Reasons Your Life Insurance at Work Is Not Enough

You may think that you never plan to resign from your post, anyway. First and foremost, you’re going to retire eventually. Secondly, no matter how large or stable your company is, your job or the business itself is never guaranteed, as something can go wrong. If an unexpected crisis occurs, then you may find yourself jobless with no life insurance. When that happens, you will have to start over again.

Most employer-provided life insurance plans only cover one to two times the employee’s annual salary. But ideally, married individuals, especially those with dependents, must be covered by 10 to 12 times their annual salary.

You also need to take into consideration that most living expenses are fixed, and the incurred debt remains the same regardless of the size of the household.

Ask yourself: Can your family handle the loss of income if anything unexpected happens? Are your family’s lifetime savings and assets protected?

As you age, it’s only natural that your health declines. Years later, you cannot depend on your strong body as much as you can now. As a result, you may need to leave your job, which means that you are left without an insurance savings plan, right when you need it the most.

Another, since you do not have control over your life insurance at work, you may not get as much coverage as you need. Your company may opt to buy a cheap group life insurance plan with low coverage to save money. This can pose more problems than solutions in case you won’t be covered when the situation calls for it.

Some employer-provided life insurance is portable or convertible, which means you can continue paying for the premium on your own to convert it into an individual life insurance plan. The catch here is that it may turn out to be more expensive.

Most group policy premiums are computed at a standard rate based on the number of employees, so the insurance premium is not based on you as an individual but as a group. Your individual premium may turn out cheaper if you purchase a life insurance plan outside work because it is computed based on your individual age, health, and lifestyle.

Recovering from holiday spending hangover should not stop you from making investments. Investing promises protection not just to your wealth but also to your and your family’s financial security. You have a variety of investment options such as stocks, mutual funds and insurance.

For instance, with health insurance, you’re protecting yourself from emergency hospitalization or consultation fees that might strain your financial resources further. You also have the option to take out an insurance plan that integrates investment opportunities into your insurance, such as a Unit Linked Insurance Plan (ULIP) and Variable Universal Life (VUL). These insurance products provide you with life insurance benefits and at the same time come with investment options for stocks, bonds, or mutual funds.

Today, buying life insurance or health insurance in the Philippines is fast and easy. You can just go to a bank like BPI, which has up to 800 branches nationwide and ask a Bancassurance Sales Executive about how you can invest your money in a variety of insurance products.

While there’s nothing wrong with shopping during the holidays, you don’t want to start the year broke. Follow these simple, actionable steps to get your finances back on track.

If your employer provides life insurance, then you should, of course, take advantage of the benefit. Just remember that purchasing a savings and insurance plan outside of work will offer you more coverage and better benefits, independent of your employer or career status.

Get your individual life insurance plan now! Talk to a Bancassurance Sales Executive at any of the 800 BPI branches nationwide to know your options.