04/10/2017
WHY LIFE INSURANCE?
1.) The challenge of doing regular savings is difficult because of current necessities.
2.) Men are unwise or sometimes unfortunate in investments.
3.) Men seldom live long enough to accumulate an adequate estate.
The old formula seldom works because it depends on three BIG IFs: if a man saves, if he successfully invests his savings and if he lives long enough to complete his plans.
Madami may savings pero takot mag invest. Madami nag iinvest pero hinde nag accumulate ang wealth once he passes away.
So WHY LIFE INSURANCE?
1.) Life insurance is successful thrift. It obliges a man to become thrifty. Does your bank call you that you need to save this month? No. No bank ever notifies a client to deposit on a particular date.
2.) Life insurance is successful investment. Who can give a return in investment of so high a percentage in so short a time? E.g. if you put 5000 pesos in a bank, it may earned a guaranteed .25% but it's not enough to defeat inflation. If you pass away you will still get 5000 plus the interest. When you invest 5000 in insurance that covers you for 500,000.00 and you die in a month's time, your family does not get 5000 but 500,000.00. Only insurance can give that.
3. ) Life insurance is adequate time. Of all financial institutions, only life insurance solves the problem of adequate time. A man must live long enough to complete of his plans, except life insurance. Only God can give adequate time and only life insurance can give the equivalent of adequate time.
Life insurance is the only savings and investment plan that recognizes the hazard of death, that realistically deals with death.
My notes and Excerpts from the Advance Course on Life Insurance by IIAP which I took years ago.
Feel free to share.
*Reposted from Ron Sy
