Yes, perhaps this is you…
You are probably starting in your career, and at this stage, you already know that you have to take control of your finances (a proof is that you are actually reading this article).
Congratulations to that!
You’ve got your emergency funds covered, but now you’re confused. Will you go straight to investing, or will you get life insurance first?
It is very crucial to address this bugging question.
Considering you are young with nobody relying on your income but you, why would you ever need life insurance?
“I’ll just invest the money instead of buying life insurance!” This, perhaps, is the voice in your head.
Why Need Life Insurance, Anyway!?
First and the major reason is about taking responsibility of our own lives.
In most situations, our lives are often interconnected with one another. Especially for us Filipinos who take pride in our family-oriented outlook.
Our actions and inactions particularly about money could directly or indirectly affect our parents and/or our siblings, and sometimes, even our relatives’ lives.
Whenever a member of the family is in a dire need, everyone is usually there, offering moral and financial support. That’s how we love our families.
But that feeds a cycle of a never ending loop, leaving everyone struggling on their finances – while they themselves are financially challenge, they won’t think twice to provide financial support to any family member who badly needs it.
This cycle should stop.
Untimely death should not burden the families left behind. That burden will surely slow down their own journey to financial independence, well, unless you belong to the ultra rich families.
But most of us are on the middle. And nobody wants to be a burden to anybody, either dead or alive.
The second reason is about planning ahead. Since life insurance increase costs as we age, getting one while we are young (and able) is a practical reason.
Life insurance is one of those things in life that you buy but you don’t want to use. Those things that you can’t buy whenever you needed them the most.
Conclusions and Recommendations
As a yuppie, if you have already saved a good amount of money that would cover the costs of “untimely death”, then perhaps you really don’t need insurance.
How much do you need saved up? Well, this article could give you an overview of how much.
The truth is, most yuppies that enters the marketplace does not really have much – given it’s the stage in our lives wherein we are just starting to accumulate assets.
You may be able to afford sustaining your own personal needs, and perhaps consider yourself independent – living on your own income. But, when inevitable events comes up – sickness, loss of job, etc.., the tendency of asking help from parents and siblings aren’t that very far.
Emergency funds, life insurance, health insurance, and your investments would help you cover those inevitable events. Only by then wherein you can proudly say that you are really taking responsibility of your own life.