7 Reasons to Choose a Reputable Life Insurance Company in the Philippines

Introduction

For Filipino homeowners, their most valuable asset is probably their home and not just any property. As such, life insurance becomes an important aspect not only to protect the physical asset but, more importantly, to protect the financial status of the ones they care for. There are seven compelling reasons a Filipino homeowner should protect his property with life insurance:

Mortgage Protection:

Life insurance provides homeowners with a safety net. This is because mortgage payment protection will be provided in the event of the untimely death of the homeowner. The death benefit proceeds from the policy will be used to pay off the house mortgage, thereby erasing the risk of foreclosure; at the same time, the surviving family can move on without financial impediment.

Spouse and Dependent Income Replacement:

For a homeowner who is normally the primary breadwinner of the family, the insurance provides an important source of income replacement. The death benefit will act as income replacement for lost income, ensuring that the surviving spouse and dependents are able to maintain their standard of living and keep up with periodic mortgage payments, utilities, and household expenses.

Legacy Planning and Wealth Transfer:

Life insurance establishes a legacy for homeowners’ loved ones. Its death benefit can fund children’s education and future expenses, or provide a lump sum for charitable donations. The insurance represents an opportunity for homeowners to use an estate planning strategy through proper asset transfer, ensuring that chosen beneficiaries get the portions they deserve.

Business Continuity for Home-Based Entrepreneurs:

A good percentage of Filipino homeowners operate businesses from home; most of the time, these are freelancers, online sellers, or small business owners. Just in case a homeowner dies, life insurance takes care of business continuity—covering business debts, compensating key employees, and allowing business to resume without hitches.

Estate Taxes and Inheritance Planning:

In the Philippines, estate taxes can levy a hefty price on the heirs of the homeowner and could even prompt the sale of the family home just to pay the tax debt. The insurance will help to avoid these kinds of problems by giving liquidity to pay the estate taxes, without disturbing the assets and home ownership of the heirs.

Funding for Home Repair and Maintenance:

The cost of homeownership is permanent in nature and includes regular repairs, maintenance, and renovations to the home. Life insurance will provide necessary funds to meet those expenditures and take care of the safety, comfort, and state of the home for the family of the homeowner.

Peace of Mind and Financial Security:

Above all, life insurance gives the homeowner peace of mind that loved ones will be financially secure, whatever the future holds. By purchasing life insurance coverage, the homeowner will ensure that both the home and the family are secured from the odds of life.

Final Thoughts

In conclusion, life insurance is an indispensable financial instrument for Filipino homeowners to provide mortgage protection, replacement of income, legacy planning, continuity of business, reduction of their estate tax liability, funding for repairs and renovations, and most essentially, peace of mind. Any Filipino homeowner, by integrating life insurance within the framework of his/her overall financial plan and attachment to a particular house, will ensure the financial protection of himself/herself and security to the family in the future.

A multi-award-winning blogger and advocate for OFWs and investment literacy; recipient of the Mass Media Advocacy Award, Philippine Expat Blog Award, and Most Outstanding Balikbayan Award. Her first book, The Global Filipino Bloggers OFW Edition, was launched at the Philippine Embassy in Kuwait. A certified Registered Financial Planner of the Philippines specializing in the Stock Market. A recognized author of the National Book Development Board of the Philippines. Co-founder of Teachers Specialist Organization in Kuwait (TSOK) and Filipino Bloggers in Kuwait (FBK). An international member of writing and poetry. Published more than 10 books.  Read more: About DiaryNiGracia