LIFE INSURANCE | Emergency Fund
When you talk about life insurance, what type would be the best for you to invest in? Many types of life insurance can help you and your family overcome emergencies. If you are a little confused as to what type of life insurance to get, you came to the right place. This article will focus on how life insurance can be your family’s buffer against emergencies.
In the Philippines, many people are not financially prepared for emergencies that hit them and their families. Emergencies can strike anytime, not choosing any particular person. Sometimes, it may even seem those bad things keep happening over and over again, to the same people. When one problem gets solved, there would be another one seemingly waiting around the corner to surprise you.
If you are not financially ready for these emergencies, the consequences can be very bad for your family. This is why you need to have sufficient savings to make sure you are ready for anything untoward that might happen.
Why we need funds for an emergency
When an emergency happens, we must have enough money to handle the situation. If we do not have enough funds in place, we risk not being able to get through emergencies.
It is important to have a savings account so that you can have the funds in case anything bad would happen to you or your family. Opening a savings account in the bank and putting money into it every salary is one way that you can accumulate enough money for emergencies. Also, having savings can give you peace of mind.
On other occasions, if you do not have savings, you might end up borrowing money from friends and family, or taking out a loan from the bank. If emergencies keep happening, and the borrowing trend is always repeated, you may find yourself in serious debt. This is not an easy problem to solve, because if debt piles up, it can get really difficult to pay off all the debt without going broke yourself.
How we can save money for an emergency fund
Setting up an emergency fund is easy if you do it the smart way. Getting a life insurance policy can already include an emergency fund. You can customize the cash benefits that you have in your life insurance and set one up to be an insurance fund.
Another cash benefit can also be used as savings. Most life insurance companies will let you withdraw from these cash benefits (sometimes with a corresponding charge and sometimes without one) every time you would be in need of extra funds.
How we can achieve peace of mind with life insurance
Life insurance offers you the opportunity to have peace of mind. Knowing that you have the money available in case any emergency would arise will make you rest easy at night.
You and your family can achieve financial freedom and security because of life insurance. Life insurance, if put together in the right way, will make you and your family invincible when it comes to any type of emergency.
Talk to your life insurance agent today to get insured!
