Some people don’t want to buy insurance. The idea of paying premiums every month could be heavy on the pocket, especially when you have other expenses on the table. But this is a short-sighted, huge mistake.

There are many very strong reasons why you need to get an insurance. For starters, you never know what will happen either to you or any member of the family. Also, savings is not enough to cover sudden expenses (especially if it involves six to seven digits). This is why it is important to start preparing for the uncertain and having an insurance could help you with that.

The question now is what type of insurance should you get for your family? Below are your options:

Life Insurance

This type of insurance pays lumpsum to the surviving family in case of death of the insured person or after a certain period.

There are three types:

  • Term Life Insurance – This provides death benefit payment after a certain period, usually within one to 30 years. It is also the most affordable type of life insurance in the market.  The issue with this is that in case death didn’t happen within the given period, the insured will get nothing.
  • Whole Life Insurance – This offers lifelong coverage plus death benefit and investment. The good thing about this type of policy is that you get to earn dividends, which you can withdraw whenever you need it.
  • Variable Universal Life (VUL) Insurance – This insurance type comes with disability, living, and death benefits as well as insurance component. The difference of VUL with whole life insurance is that you can choose where to invest your money.

Among the insurance types in the market, having a life insurance should be your priority. It offers financial support in case something happens to you plus the investment component could be helpful in growing your money and possibly covering expenses back home.

Health Insurance

This type of insurance reduces, if not cover all costs of healthcare services. This could be emergency, inpatient, outpatient, and preventive services. Healthcare insurance may be used not just by the policyholder but also by the qualified dependents.

Why should you get a health insurance? The answer is simple: healthcare is expensive in the Philippines. Getting an insurance will help you cover medical expenses without depleting your savings account and Emergency Fund (which we assume you have!)

Tip: Ask about including critical illness insurance coverage. This coverage includes serious illnesses like stroke, heart attack, brain injury, Alzheimer’s disease, and cerebral palsy among others. You might have to pay for additional premium, but this could be useful especially if critical illnesses run in the family.

Education Insurance 

Education can be expensive in the Philippines, especially if you want to send your children in the best universities in the country.

If your budget can accommodate it, then get an educational insurance for them. Consider this as a form of investment to ensure your child’s future. This is better than borrowing money when it’s time for your kids to go to college.

Education is something you could leave to your child and it is worth investing.

Home Insurance 

The purpose of insurance is to help you prepare for the inevitable. When you invested in a home, you need to make sure that it is protected against all possible loss or damage like fire, typhoon, or burglary. Your home might be affected of disaster caused by someone in the community, thereby losing everything you invested in that home.

Having a home insurance offers emotional and financial security and peace of mind. Nobody wants to experience disaster but in case it happens, at least you have something to turn to. Plus, it could help you reimburse expenses like medical, rental, and relocation so you don’t have to worry about getting these paid.

Car Insurance

Do you have a car? Then you need to have an insurance to make sure that expenses related to vehicular accident (medical bills and repairs among others) or theft will be covered.

It may be the least of your concern, but having a car insurance could give you peace of mind in case something happens.

Do you really need to get all of these insurance policies? Not really. Nonetheless, it is important to get at least one since this will give you financial security and peace of mind in case something happens.

The key here is to know your needs and find out which one should you prioritize. You can start with life insurance or health insurance since this will come in handy.