Why I got a life insurance policy and why you should, too

Getting an investment-type insurance is the best financial move I've done. (Photo courtesy of ganatantranepal.org)

It was three years ago, when I was 22 years old, that I got my first life insurance policy from Sunlife. As future-oriented a person as I am, the main reason I did so was so I can retire early with enough money to sustain my lifestyle as if I am still fully employed.

I want to retire early. If I have my way, I'd like to start my world tour on or before my 40th birthday (ambitious, much?). I don't want to retire when I'm 60 or 65, when my bones would cry for help with bungee jumping or sky jumping or any of that sort of activity.

Should you be taken out of the picture, you'd know your loved
ones will do OK. (Photo from johannajamesinsurance.blogspot)

My parents were not believers of life insurance policies. I can't blame them. During their time, traditional life insurance policies aren't the most attractive products in town. But the industry has evolved so much over the years, incorporating investment aspects (stocks, mutual funds, bonds, etc) into the picture.

That's what I got--an investment-based life insurance policy. Basically, it's part insurance, part investment, rolled into one. How can it get better than that?

So not only do my beneficiaries assured they'll get financial assistance when I am taken out of the picture, I will actually be able to enjoy my money while I am still alive. That's living benefit for y'all! :)


Having said that, here are the reasons why I got an investment-type life insurance policy and why I think you should, too. :)

It's for YOU and your loved ones
(Photo from onlineinsurancehelp.co.uk)

1. Sense of independence
          When I grow old, I don't want to depend on my children, brothers, sisters, or any loved ones to finance my everyday needs, more so the medical expenses we all would probably need as we get older. I definitely would want to have my own money so I can travel where I want to or buy things whenever I want. With a very bright outlook for the local economy, the investment part of my life insurance should take care of this. The good thing about insurance is, if you are taken out of the picture early, you're designated beneficiaries benefit. If you live too long (say upto age 100), then you at least have money to live a comfortable life until the end.

2. Feeling of security
          Some people feel they don't need life insurance because they are earning quite well at the moment or are expecting big sum of money as inheritance from their parents or even from a profitable business. While I feel happy for them, we all know how quickly money can be taken away from us. There are a million scenarios that can happen when you realized you have nowhere or no one to turn to. An investment-type life insurance covers for the uncertainty in our lives. As long as your investments are intact, there's money from it that you can borrow during challenging times.

The earlier you start, planting the seeds, the better deal you'll get
(Photo courtesy of ganatantranepal.org)

3. Financial security for loved ones
          I always joke that should my time comes (hopefully, not until I'm really really really old) before my policy's maturity, my mom or my niece (who are my beneficiaries) would be the ones going on a world tour. On a more serious note, investment-type life insurance products give me a sense of economic stability for my loved ones. This is more true if you are the breadwinner or is supporting your parents or sending siblings or children to school. Imagine this--should you go now, where would they get the money to continue the lifestyle they are living now?

4. Somewhat a "forced savings"
          I'm the kind of person who just can't keep track of where my money is going if it's just in my ATM. But when I have a goal, as is saving for my yearly life insurance premium, I get the feeling that my hard work is going somewhere; that in the end, it's me who will profit off it. What I do is when I get my pay, I immediately set aside the money for my life insurance premium then make do with what's left. A win-win situation. :)

There's no point in delaying what would essentially be for your own good in the future
(Photo from blogneffy.blogspot.com)

To those who already have their respective life insurance products, kudos to you. I hope you are properly insured (not under-insured). To those who have yet to consider this option as part of their financial planning, please, please do so as soon as possible. Like they say in Sunlife, it's time! :)

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