Disadvantage of Insurance

September 21, 2012 | By Fitz | Filed in: Investing, Personal Finance.

Hello po! Tanong ko lng po disadvantage of having insurance, may nabasa kasi ako on other forum that one of the biggest money mistakes ng ibang member is gettin insurance medyo naguluhan ako since lagi promote now these days to get insurance, paano naging money mistakes pagbili ng insurance? what if bumili na ng insurance after few years a payor failed to pay the premium it means balewala narin yung naibayad ni payor?

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10 Responses to “Disadvantage of Insurance”

  1. Fitz says:

    Hi. Buying insurance has its pros and cons. Personally, I think the advantages outweigh the disadvantages.

    I believe that good money management means, being able to live below your means, having multiple sources of income, investing and protecting your assets.

    The last one is where insurance comes in.

    I think each insurance company has their own rules with regards to failure of payment, but in general – I believe that having an insurance is important.

    Particularly, a life insurance for breadwinners, short-term and long-term healthcare insurance for everyone, and non-life insurance for our most valuable assets (car insurance, fire insurance, etc.).

    Many see insurance as an unnecessary expense – but time and again, I’ve proven in my own experience, that it is a very important part of personal finance.

    And always remember – the only time you can buy insurance is when you don’t need it, and you cannot buy insurance when the time comes that you need it.

  2. lady_purple says:

    Thank you so much sir Fitz! A week ago palang since I bought insurance for my son and for myself naguluhan lang po ako sa nabasa ko on the other forum. Your site and other forum inspired me to bought insurance since im single mom and while my business is doing well and also while im still in late 30’s.

  3. PJDC says:

    Hi ms. Lady purple, it’s nice to hear that you bought an insurance for you and your son. Actually, the PEOPLE who are saying that buying an insurance is a mistake are BIG MISTAKES! Maybe they are immortals.;)

  4. Albert Melano says:

    ako rin, negative ako sa insurance noon pero nung malaman ko kung gaano kaimportante ang insurance lalo na sa mga mahal ko sa buhay, naging positive ako dun, and in fact lahat ng tao papunta sa hindi inaasahang mangyayari.. kung mangyari man yun, masaya ang mga naiwan mo kasi may naiwan ka para sa kanila…

  5. Fitz says:

    Life is uncertain, you can either die too soon or live too long.

    When you die too soon (knock on wood), your insurance will ensure that your family can survive financially. When you live too long (hopefully), your investments will ensure that you can survive financially.

    Both are important – insurance and investments.

  6. PJDC says:

    VUL insurance and investment plan can answer that!

  7. Maria Linda says:

    lady_purple, it would have been more helpful if you’ve posted the whole sentence or idea that forum stated so we could validate their reason for stating that buying life insurance is such a money mistake…anyways, i’m thinking maybe what it was referring to as mistake is the thing that there are people who tend to get “too much” life insurance that would cost them more and that it would have been better if they have invested the money they used for the cost of that. You see, the Face Amount or Basic Death benefit of your Life Insurance should be properly computed by your Insurance Consultant so that it would be appropriate to the coverage you really need. It is really a mistake to get let’s say a 2M cover when you only need (based on computation) 1M.

    If your Insurance consultant did just the right calculations , then rest assured that you’re not making any mistake but you’ve actually made one of the wisest financial decision of your life:-) -Wealth and Wisdom to us all-

  8. che says:

    I perfectly agree with you guys. In fact, I regret that I’ve only known Life Insurance a couple of years back when I should have started when I was younger and single. I also believed that no one has ‘more than enough’ life insurance. Most spouse would say they already have enough but ask a widow and see for yourself. I trust my Financial advisor so much that I can vouch for her service to anyone interested.

  9. marivic uy says:

    if only i can bring back yesterday, i should have put all my money intended for my retirement and future large expenses in life insurance. i lost so much money in a pre-need company for they do not have cash values in times of immediate needs. life insurance allows you to loan from your cash value with a very reasonable, if not, very little interest, without losing your face value or amount of coverage. it is the best savings program and the best time to get one is when you are still very young. it is the only financial tool where you having nothing to lose but so much to gain. transfer your money from the bank to life insurance. life insurance is not an expense. it is about savings and investments. it is not about death… it is all about life.

  10. Yrger says:

    Insurance is very good!

    But it is when you are going to cash in on insurance that you will encounter a lot of hassles thrown at you by your insurance provider company.

    Their attitude is to make it so impossible for you to reap your insurance payments all the years you have been paying, so that you are practically a beggar and they are dispensing not what is due to you, but mercy!

    And when you go to the Insurance Commission to ask for assistance, those guys there also have the attitude that insurance companies are dispensing mercy, not what is due to you for having paid all the years faithfully, punctually, and completely.

    That is what is wrong with insurance in the Philippines; and about property insurance, only in the Philippines there are no public adjusters who can help you, but all adjusters are the socalled independent adjusters hired by insurance companies to compute how little the insurance company is required to pay you.

    In the Insurance Code there is mention about the public adjusters, but when you go to the Insurance Commission to ask how come there are no public adjusters, the guys there up to the top commissioner himself will tell you what is the most stupid reason from them (except that it is all lack of concern with them for what is really one of their duties, namely, to make sure that there are public adjusters to help claimants), these guys in the Insurance Commission starting with the top commissioner (there is only one of course, unlike in the Comelec), they will tell you, “Simple, there are no ones applying to be licensed to practice as public adjusters.”

    So, they mean they don’t have any duty whatsoever to make sure that there are public adjusters, but that is one of their duties, otherwise how can claimants get assistance to deal with the socalled independent adjusters hired by insurance companies to calculate how little insurance companies are required to pay claimants.

    Only in the Philippines, because people in the government are so useless…


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