Life Insurance 101: Knowing The Best Plan *

Some think life insurance is too complicated and expensive. For most, life insurance remains low in their list of priorities.

While others do not want a “one-size-fits-all” life insurance product and prefers personalized solutions that exactly fit their needs, some do not even believe life insurance is a good investment for their hard-earned money.

In a nutshell, insurance provides protection against the risk of the unknown. It protects individuals, their family and their assets from unexpected loss. One of the most effective and practical ways of dealing with risks and uncertainties is to get insured.

“Most people do not have insurance because they do not understand the basic things about it,” says AXA Philippines President & CEO, Rien Hermans.

Hermans adds that a lot of people also do not get insured because they do not know the right kind of insurance that suits their needs. “One of the common mistakes of purchasing insurance is being underinsured or improperly insured. A good insurance company should be able to assess your needs and offer products and services for the things you need to prepare for.”

Common Types of Insurance

Life insurance is one of the most common types of insurance that is designed to take care of one’s dependents, including one’s spouse, children, or parent in case of sudden loss of the breadwinner. It offers income protection that can help secure their future.

Meanwhile, health insurance covers payments for medicine, consultations, hospital stays, and other medical expenses and treatments. This insurance is often included in employer benefit packages.

For professionals, there are retirement insurance plans that can help them prepare for a comfortable life after years of employment.

Educational plans are likewise available to help parents pay for their children’s tuition fees.

Generally, insurance is something that provides security against life’s uncertainties, such as the death of a spouse, or being diagnosed with a critical illness. It also helps prepare for necessities, such as your children’s education or your future retirement. Think again.

These article is derived from AXA Philippines press release as they aim to redefine how customers view life insurance.