Growing up, one might hear insurance a lot. Marketing materials of different Insurance Companies like Pru Life, Manulife, Sun Life PH, and the like are aired on TV and seen through social media or tri-media. Even as one grows older, insurance can still be difficult to grasp. Despite that, people really have no idea about the importance of insurance? So what is it and is it important and should you get one? Let’s find out.
What is Insurance?
So, what is insurance? Insurance is a financial contract between the insurance carrier and the client or company. Through policy, the financial contract becomes a safety valve for the client as he/she receives reimbursement or compensation for any financial loss, be it theft, damage, or even a lawsuit.
Insurance works as a monthly payment called a premium made by the client to the insurer. This helps the insurance company stay financially strong just in case disaster hits a client.
Are you still struggling to fit the puzzle together? Here is one simple way to put it. Insurance is like betting. As a client, your bet is that something bad will happen to you. As an insurer, your bet is that something bad will not happen to the client. Every time something bad does not happen to the client, he/she losses the bet and must pay his/her loss, which in insurance is the premium. However, if you finally win the proverbial bet, God forbid, the insurer returns your losses.
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Nevertheless, no one would not want anything bad to happen. As a client paying the periodical premium, you would prefer to be paying for something you will never have to use. However, if an adversary occurs, and you are not insured, you will be put in a tough financial spot.
Henceforth, this article will break down how the different types of insurance work, and enumerate the different reasons why one must be insured. In addition to this, this article will discuss MGS Insurance, an insurance carrier, and Golden Future, a death care provider.
What are the Well-Known Types of Insurances in the Philippines?
1. Home Insurance
Destruction of one’s property is very inconvenient since it is unpleasant living inside a house with something broken. As a homeowner, you can have it repaired then live somewhere else during the repair work. This very proposition is expensive but can be avoided with home insurance.
When shopping for home insurance, it is imperative that the insurance covers the costs of repairing the damage and where to stay while the damages are being fixed.
The next time you are looking for your next home and you see an affordable house and lot for sale, make sure the insurance expense on top of the cost of buying the house is included in your criteria for what is considered “affordable.”
2. Life Insurance
Life Insurance is important because its purpose is to protect the beneficiaries, your loved ones in the event of an untimely demise. Coverage usually covers burial expenses, and provides a sum of money for those you left behind.
Losing a loved one is emotionally draining on its own, so being insured becomes one less thing to worry about since the people left behind do not have to worry about the financial consequences of a loved one’s death.
Investing in deathcare is all that this is about and something Golden Future advertises.
3. Health Insurance
One reason that makes health insurance a necessity is the soaring cost of medical care. A visit to the doctor can cost you around Php 750. More serious injuries can cost you tens of thousands of pesos. A way more serious injury, a surgery, can unsurprisingly cost you as hefty as Php 500,000.
As much as a hassle monthly premium payments to insurance companies can be, having to shoulder these costs on your own is double the hassle of being insured.
4. Auto Insurance
In the Philippines, Compulsory Third Party Liability (CTPL) is the only type of insurance mandated by the Philippine Government. CTPL does not cover damages to the vehicle itself, it only covers the death or injury of a third party. This makes getting your vehicle insured very important.
When choosing an auto insurance, be wary of your budget. Monthly premiums vary on the health and age of your car. Moreover, be sure that the insurance covers as many car parts as possible.
One final thing to be notified of is that auto insurances will only cover a vehicle up to a certain age because it becomes more expensive to repair and maintain.
What are the Benefits of Being Insured?
1. Financial security for you and your family
As the potential breadwinner of the family, they rely on you to be financially strong for the family to live comfortable lives.
Hence, no matter how much money you earn right now, all your wealth can dissipate due to unforeseen catastrophes. Therefore, it is imperative that you are insured so that your family is protected in case something unfortunate happens. If something bad does happen, knock on wood, your family will be the beneficiaries of a large payout to help move on, at least financially.
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2. Reduce stress
Using death as an example, anytime someone dies, his/her loved ones are dealt with emotional stress and pain. If you are not insured, imagine having to deal with the extra burden of looking for money for a proper send-off and financial recovery, on top of mourning.
No one can be truly prepared for death, but if you are insured, it becomes one less thing for your loved ones to worry about.
3. Legacy cash out
Once again, in the event of your death, having paid high amounts of premium can benefit the children you will be leaving behind as a lump sum of cash will be given to them.
This can assist in securing their financial future and make their current standard of living easier.
MGS General Insurance Agency Services, Inc. is an insurance company that caters to the insurance needs of MGS Constructions and affiliate companies. According to their website, they offer “insurance services on bonds, fire, and allied lines, motor vehicle, personal accident, casualty, liability, engineering, marine cargo, surety, and micro-insurance.”
Where MGS Insurance shines is in their ability to provide prompt risk management and cost-friendly insurance coverage.
If you visit their website and see the number of awards they receive, MGS General Insurance Agency Services, Inc. ensures you that you will be financially secured with them.
Golden Future is a death care plan provider in the Philippines.
Deathcare is a fundamental form of life insurance and investment. As mentioned in the Life Insurance subsection, being insured here will cover the expenses of the burial. In Golden Future, they offer a bevy of life plans for you to fit any budget, with coverage across retrieval, chapel viewing, and funeral.
No one wants to think of death. But when making this investment, one is at least financially prepared. Death can be a sensitive topic and avoided altogether, but one must be ready for his/her family when the day comes. In order to be ready, purchasing insurance is of utmost importance.
Insurance is important because it allows you to be financially secure in case something horrible were to occur. One will have ease of mind knowing one has a safety net in the form of financial aid from an insurance company.
The four types of insurance listed above are argued by financial experts as the must-have insurance policies one must have.
Beginning with life insurance, Golden Future will be financially strong and care for your family when you depart.
Since Golden Future does not offer other insurance policies, MGS General Insurance Agency Services, Inc. can give you quotes for your personal health, your vehicles, and your business.
Insurance expense is an unwanted yet necessary expense so if you are not insured yet, call an insurance company and get your quote today.
Written by Cholo Hermoso