Protection for My Family: I am a Hard Working Filipino Frontliner in the Philippines | EfPrime Financials

I am a Frontliner:  Rider, Doctor, Nurse, Security Guard, Driver, Medical Technologist, Solider, Police, etc. How can I protect my Family against all Life's Risks? 

Date Updated: 18 August 2020  

Summary

Why Should You Protect Your Life as Your Family's Provider?  

Owning a Life Insurance Maximizes Hard-Earned Income 

VUL Life Insurance is the most superior investment available in the Philippines 

Why Should You Protect Your Life as You are Your Family's Provider?  

The data about this pandemic reveals that about 45% of working adults lost their job. There are about 2,681 Filipinos who died due to COVID-19 and about 164,474 Pinoys who got infected with the virus (August 17, 2020, at 8Am)1/. Moreover, many Filipinos suffer as to where should they get the next meal of the family. Further, the Philippines has officially entered a recession with a negative 16% decline in the Gross Domestic Product (GDP) for the second quarter of 2020. More than the financial losses, this pandemic also thought us something else, something that is more important than any precious property and/or personal achievement and that is the safety of your respective families. 

I know how hardworking you are. You are our new heroes at this time of the pandemic. Without your services, our country will fail. 

With the current income that you provide for your respective family, is it sufficient for all the needs of the family? Now, let me ask you this difficult question, what if you are taken out of the picture? 

I am certain that you already know what I am talking about, but then, let me please enlighten you as to why owning life insurance is the most important and the most basic financial instrument that you as a Filipino frontliner should have right now. Allow me to change your perception about the correct concept of financial planning in this pandemic.  

Owning a Life Insurance Maximizes your Hard-Earned Income 

Contrary to what the majority of Filipinos know, owning life insurance is something that maximizes income. Here is the reason why: owning life insurance i.e. Variable Unit-Linked (VUL) life insurance addresses all the life's risks i.e. untimely death, accident, critical Illnesses, natural calamities, and even retiring without money. 

Allow me to elaborate, if an insured was diagnosed with End-Stage Lung Disease as caused by COVID-19, then surely the family's income will be reduced if not totally withdrawn to drain just to attend to the illness at hand. At the end of the day, the illness of one family member, especially that of the family providers, is a problem of the whole family. Imagine if that really happens to your family. How about if in the same year, the insured likewise had encountered an accident causing one of his legs to be broken making him temporarily disabled (no work). Enough with my negative vibes already, at least you get my point. You have to realize that life can bring you a lot of life's risks and it is not limited to what I mentioned as an example. Related: Why Do You Need Life Insurance? 

Owning life insurance is a simple yet smartest gesture that you can do for your family that they will live well despite all the uncertainties that we face in this world. This is the most important thing of all in this world as shown to us by this current pandemic. It boils down to providing the needs of the family. Related: What You Need to Know About Life Insurance 

VUL Life Insurance is superior to owning a Stock Market investment, time deposit, savings deposit, mutual funds, bonds, and even Pag-Ibig MPII

VUL vs Stock Market 

VUL Life Insurance is superior to the stock market investment in the short term i.e. 10 years and below in terms of rate of return/investment level. As mentioned, investment in the stock market will ultimately beat the returns of the VUL life insurance in the long run provided that the investor has the proper understanding of the fundamental analysis and technical analysis of public corporations and has committed to continuously invests money despite market downtrend (this is often not the case for majority of stock investors). Correct, an investor might become an instant millionaire with stock market investment if only he masters the art of trading which takes years to perfect and will yield considerable amount of losses first before mastering the technique of making money. Related: Nine Steps to Improve your Trading Skills

The former is likewise more superior due to its ability to meet the cost of life's risks that might happen to the person of the insured. These risks include untimely death, accident, critical Illnesses, natural Calamities, and even retiring without money. Related: VUL vs Stock Market Comprehensive Report  

Furthermore, investing in a VUL Life Insurance enjoys diversification and is handled by professional Portfolio Managers. Hence, the risk of fluctuating investment level is not that high as compared to investment in the stock market, wherein the growth of the investment is dependent upon the skills, knowledge and consistency of the investor in maintaining his respective account. 

Lastly, a VUL insurance is being managed by your personal Financial Advisor who is knowledgeable of your finances. He/she will help you all the way. Your success is your Financial Advisor's success. 

To illustrate my point, imagine if after one (1) year of investing, the investor encountered car accident causing him to be permanently disabled for more than six (6) months. If that is the case, the investor now will be forced to withdraw his investment in the stock market at the present market price of his investment. What if at the time of the withdrawal of client, the market price of his stock market investment is half of its original stock price, then, therefore he/she will be incurring losses for his untimely withdrawal. 

On the other hand, having a VUL insurance, your Financial Advisor will process the documents for you to be able to get your coverage from your accident insurance coverage amounting to the sum you applied for.  Plus, you maintain your investment level and your life insurance coverage despite claim for the accident insurance. Have I mentioned, your life is protected until age 100 with VUL life insurance. 

VUL vs Time Deposit (TD) and Savings Deposit (SD) 

Investment in a VUL is superior than TD and SD. The rate of return of a TD and SD are not that high as compared to VUL. Saving your money in the bank is a good thing, you save only for the purposes of safekeeping your money for emergency purposes.  Related: Life Insurance is More Important than Emergency Fund However, when it comes to investing your money, definitely, you are doing a lame job of investing your money in a TD and SD as there are better platforms to choose from. Consider VUL life insurance.

Being able to invest in a VUL will entitle you to be covered by money protection even just after paying one month of premium. Hence, if untimely death happens after a month you applied for a VUL insurance, then your family gets your life coverage. Your family can use the money to pay off your loans, your burial and their upkeep as you are not physically present anymore providing what you are providing before you died i.e. INCOME. Whereas, having purely a TD and SD, your family can only withdaw the amount of your money there, malamang kulang pa sa pakain sa bisita sa lamay. This is the reality of life. 

My explanation for the Stock Market investment and TD/SD is likewise applicable to investments in the Mutual Fund, Bonds and Pag-ibig MPII. What lies the difference is that, if life risks happen to your family, your family is safe because you are entitled to protection. Do not underestimate life because if it happens, entire family will be devastated and it will take years for the family to recover.  

Conclusion 

More than selling, this article aims to increase people's awareness of the concept of Life Insurance. If I could somehow change your perception with regard to Life insurance, then, I am successful already at what I do.  

I really hope that you change your perception with regard to life insurance as I really mean that VUL life insurance is the most complete financial product that is in our market right now. It just so happen that people do not realize this, even Financial Advisors underappreciated its immense strength in alleviating peoples' lives in the long run.  

If you think that you do not need VUL Life Insurance, then, you are missing out on an important financial tool that might help your family advance forward. 

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Disclaimer 

The Author is advising readers to consult with your respective Financial Advisors before venturing in any investments. Investing your money is dependent to your goals and your risk tolerance. You should know the risks and rewards of investing before you actually do the same. The illustrations above are for educational purposes only and any risks or losses that you may incur are imputable to your respective decisions.

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