Many Overseas Filipino Workers (OFWs) often head abroad in order to provide for their families. The majority of OFWs allocate a huge portion of their monthly salary to help others and often overlook their own needs in the process.
However, as the cliché goes: “Take care of yourself first, so you can take care of others.” This is exactly why life insurance becomes a necessity for OFWs to help secure their finances in the future and protect their hard-earned income from unexpected emergencies.
The Philippine Overseas Employment Administration (POEA) has a compulsory insurance program for migrant workers that covers the basics. However, this only lasts for as long as the OFW stays employed. And by now – the world has already seen how the Covid-19 pandemic gave a stern warning about how vulnerable employment can be when a global crisis occurs.
Families back home heavily rely upon their OFW relative for all financial requirements. If anything happens and their OFW relative suddenly ends up unemployed, their family will lose their sole source of income. And this is exactly when and how life insurance can act as a safety net for OFWs and their families.
Taking an insurance policy as early as you can, preferably in your 20s, is considered a wise decision due to the low premiums and high returns offered. However, there are some critical stages where life insurance is a must for financial security as follows:
Are you intending to get married soon? This is the ideal moment for you and your spouse to check your insurance coverage. Obtaining appropriate and valuable insurance will help safeguard your finances from unforeseen events. Insurance is necessary since you are no longer alone and someone is relying on you for financial assistance. Both couples require life insurance to assure that their partner will be financially stable in the event of an unexpected incident.
When you marry and want to have a kid, insurance can help with child care and their further education when they grow up. The rates for a child will be inexpensive, and beyond a certain age, they may be able to purchase extra coverage, regardless of their present health or work. Some insurers provide cash values that rise over time. If the insurance is surrendered, it can be borrowed against or paid out.
Covering parents’ expenses:
If you don’t have enough money to support your elderly parents, life insurance might come in handy. Pay for their daily needs while they are living, and the insurance will cover their bills once they pass away. Some life insurance plans include “living benefits,” which allow some or all of a policy’s death benefit to be used to cover the insured person’s medical expenditures while they are still alive. A policy payment might cover parents’ funeral expenditures as well as any outstanding medical bills. It may also allow them to give to a preferred charity or assist in paying for their grandchildren’s college education.
Buying a house with a mortgage:
Many Filipinos dream of owning a home. You may, however, need housing loans to acquire your ideal home. You can get a Mortgage Redemption Insurance (MRI), which is a life insurance policy that helps repay your mortgage debt if you die before the loan is fully repaid. If you die, MRI will safeguard your house from foreclosure by paying off your outstanding debt and your family can live comfortably in your home without any issues.
Starting a Business/Becoming Self-employed:
If you are self-employed, chances are you have made significant investments in your firm. The purchase of a new facility, merchandise, or equipment might alter the worth of your firm. Check sure your life insurance limits are high enough to cover company obligations so that your family can be taken care of if you perish.