My view of “life insurance” in general.
Sun life, Saint Peter, Axa Life Insurance, for
sure working on the corporate world have exposed all of us to getting these
life insurance.
Other’s steers away from it but some are proud
to have it.
As a person who seeks financial freedom, what
is my view about life insurance?
Ok, I admit it, I am the type who steers away from insurance because
despite all the benefits my family would be having when I die, I pretty much drawn into the book Rich Dad Poor Dad teachings –
Money going in the pocket vs. money that goes out of your pocket,
For me, life insurance is just another expense- money going out of my pocket.
Despite of them, saying how much money I would
have- at least my family when I die would have- with just a little amount of
investment today I just couldn’t
deny the fact that its another bill to pay every month.
Car Insurance Vs. Life Insurance
But why can’t I just think about life insurance
like car a insurance?
I value
car insurance a lot and having a car without it would mean more money when an accident happens.
Like death, accident may happen anytime.
Why is it any different?
Life insurance vs car insurance Ok, that might be different on some aspects.
Car insurance will protect you from expenses
that may occur when accidents happen and I hope you will still be alive to pay
for those damages.
While life insurances is having money when you
are totally dead and leaving money to your family, which is nice but very
unfortunate.
Car insurance will prevent you from spending
more money while you are still alive while life insurances will doesn’t really
benefit your life but the family your leaving behind.
Well, that is nice and thoughtful.
But that is not the only way I wanted to give money
to my family when I die.
Apparently There are Other Ways to Leave Money to Your Family
And that can be a fully paid home, that they don't need to worry about monthly payment.
Or leave them with a running business -so small- that they can run it by themselves.
A working car that they can use to run errands.
For sure that will be a big help to them.
Prepare a college funds for the kids and let all of them learn about how to handle money the right way.
You will be surprise that no matter how little or huge left behind when you are gone, they can able to grow that because they understand how to properly handle money.
Final Thoughts
As a person who is overly obsessed about growing money, life insurance sounds like a genie granting your wish.
But with the money I have right now and my capacity to pay the monthly for getting a life insurance is too impossible.
I wouldn't recommend it either when I was still earning a little over minimum wage.
Sorry for those co-workers /agents of life insurance who asked me about it.
Getting life insurance and being financially independent is two different thing.
For me, getting a life insurance now is just money going out of my pocket.
Try to weigh in the advantages and disadvantages that you will get if you really want one.
But let us just be clear that getting life insurance especially with the investment VUL, will not make you richer that you are right now. In fact it will just make you scrunch your budget even more. Especially for us, minimum wage earners.
Well that is it for now.
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