Insurance is a practice or arrangement by which a company or government agency provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium.
“Insurance Policy” — explained. [Read it]
If you are asking what an insurance policy is, it is a contract or agreement you get after buying an insurance product from a financial institution like Pru Life UK.
It is governed by the law and it becomes an asset over time.
Insurance policies are granted for individuals or groups who have undergone a process of field investigation called underwriting.
Commonly, applicants are required to undergo physical and medical examinations if they have existing health issues.
Also, applicants who have high-risk jobs and hobbies can be more expensive.
So, it is important to purchase one while you are still insurable. It’s not granted to everyone.
The main purpose of an insurance policy is to protect you and your income before an unforeseen life event happens to you, esp if you are a breadwinner.
It is called life insurance because it will pay the big amounts of cash required due to hospitalization that you will probably need once sickness comes.
It can pay large amounts that your HMO can’t.
It is a protection product with an investment feature — which can also be used for savings for your children’s educational fund, medium to long-term goals, or for your retirement.
Most people think that it is just an expense and something that they don’t need, but wrong, especially nowadays, it is a need that every Filipino must consider buying.
Saving and preparing is the best you can do for the future.
Written by Diamond Georgina
See the sample below:
By saving 67/day for your child (4yo)
You get Php 800,000 for Life insurance.
You get Php 100,000 for Accident insurance.
You get Php 200,000 for Disability benefits.
And you can potentially grow it up to:
Php 530,063 after 20 years
Php 2.7M at age 60
Php 3.4M at age 65
You can also start with Php 1,300 to Php 1700 yearly for a traditional product. Ask me how.
Feel free to message me if you want to see a sample quotation for you. Thank you for reading it.