Life Insurance: Preparing for the Inevitable

In life, you either live too long or die too soon. Having a long life and growing old is a grace from God, but logic tells us to look at the other side of the coin as well.

We don’t normally talk about death. Most of us, after all, like living and being around our friends and family. However, not preparing for that day can make the ordeal harder for the people you’re leaving behind.

You may be ready to say your goodbyes, but have you thought about the financial costs of death itself? Consider this: If you’re not financially prepared, in the event that you do kick the bucket, your loved ones have to take care of paying for funeral services and medical bills if any while coping with the emotional weight of your loss. That’s why, while you’re still able to, it’s very important to take a practical approach in preparing for the inevitable.

 

Breaking Down The Costs

 

Just to put things into perspective, let’s look at the numbers. Financial advisors found that funeral expenses in the Philippines have grown 3 to 5 percent yearly, according to a report from Rappler. That means it’s becoming less and less affordable to die.

Wooden caskets start at around P5,000 while metal ones don’t cost lower than P30,000. Some caskets can go for as much as P100,000 or even more, depending on the materials.

Opting for cremation, meanwhile, costs somewhere between P70,000 to P100,000.

Columbaries and cemetery lots can also be very expensive. These typically cost a couple hundred thousands, with some of the most expensive reaching the millions.

Factor in miscellaneous expenses, including documents, flowers, and food, to name a few, and your family could be facing a hefty bill when you die.

 

How You Can Prepare

 

One good option in protecting your family’s future is to get life insurance now. Doing so lets your beneficiaries avail of a non-taxable amount of money, which could be used for a number of important expenses, in the event of your passing.

If your family is financially dependent on you, for example, the money they receive can serve as income replacement, allowing them to sustain the same standard of living for a period of time.

Some might argue that in death a memorial plan will suffice. While that can be true in some instances, these plans only cover funeral services. They cannot pay for any outstanding debts you might still have, such as bank loans, hospital bills, and mortgage while the lump sum from life insurance can. In the same way, if you don’t have a memorial plan, the life insurance fund can take care of some, if not all, of the funeral costs.

In short, your family is free to use the money from your life insurance plan how they choose to.

Death is a natural part of life. There’s no avoiding it, but we can always think ahead and prepare. While no amount of money can replace your life, having life insurance coverage lets you look out for your loved ones after you bite the dust, letting you truly rest in peace.