At age 23, I applied for my own life insurance policy.
An insurance agent from Ayala Life, Tita Mely, was a frequent visitor in our office. She already had several clients who were also my officemates, and one of them referred me to her. I agreed to sign up after meeting her once.
My Personal Plan
I cannot recall anymore how the presentation went and how Tita Mely convinced me to sign up for a plan. All that I can remember was that I could afford paying the premium cost (almost P4000 semi-annually) and paying for it for the next five years was doable.
To be honest, I haven’t fully understood the value of life insurance that moment when I filled out the application form. Life insurance products that were linked to an investment instrument were not yet offered at that time, so it was not investment that got my nod of approval.
I just figured that life insurance is something important because my employer included it in our list of company benefits. Why would our company spend money on something not beneficial to us employees?
Life Insurance as a Company Benefit
During that time, I have just assumed my new role as Benefits Assistant, from my previous role assignment as Labor Relations Assistant. My new post exposed me more to the various government and company-initiated benefits provided for our employees.
Though I was originally assigned to handle benefits planning and review, there was a certain time when I had to cover for a colleague who went on maternity leave. Her tasks involved processing of salary loan requests and various claims, including retirement and life insurance claims.
It was then that I better understood the importance of getting oneself insured.
Whenever an employee dies, particularly if death occurred while performing one’s job, it is never easy for HR Practitioners like me to face the bereaved family and console them.
What makes the task slightly bearable is when there is financial assistance extended to the family in the form of life insurance proceeds.
The cheque that we hand over to the family can save them from getting into a financial crisis arising from the death of their income provider. There have been cases when the family was not aware of this life insurance coverage, so it came as a surprise that there’s still fund left for them to use while recovering from the sudden loss of their family member, and the loss of the income.
I was thankful that my employer believed in life insurance and made sure that all regular employees were adequately protected from risks. If something bad happened to me while I was still employed with them, I was confident that my life insurance benefits will take care of my final expenses. My parents can grieve without having to worry about where to get the fund to pay the bills.
But it made me wonder: What if my employer didn’t have a group life insurance plan in place and then I got into a fatal accident?
The mere thought sent cold shivers down my spine.
That’s when I realized that I made the right decision in buying my own life insurance plan.
Grateful that I met an insurance agent early in my adult life.
Peace of Mind
I go out almost every day and expose myself to different risks on the road. I am not invincible. I am not an immortal. Death can strike anytime, anywhere.
The amount of coverage of my own insurance policy may not be as big as my employee coverage, but it should be enough to cover burial expenses, memorial plan, etc.
And if only for that, I can have some peace of mind.
Because that’s the point of getting myself insured: To buy myself peace of mind.
Pay a total of about P40,000 in just five years to assure me that there will be money released to my family if I die any time before my 80th birthday? Not bad.
Paying the same amount for the latest iPhone model can’t give me the same results.
How about you? Have you already purchased your own life insurance plan?