Family Protection / Income Replacement

by: Pauline Uchi, Licensed Financial Consultant

The primary purpose of life insurance is for family protection. This is to provide a full replacement of any asset lost such as breadwinner or a key employee of a corporation. Yes, you heard it right! A breadwinner is an asset of one’s household.

There are only two sources of income. One is MAN AT WORK, the other one is CAPITAL AT WORK. Man at work is simply the breadwinner, providing everything for the family. This is the result of an active participation in a corporation as employee or business owner in the form of a salary, commissions or whatever profit that comes out directly from working. MAN AT WORK can be protected by buying a life insurance. Life insurance will replace income that died with the breadwinner, so their family can maintain their standard of living; their spouse will not have to work double time and probably just spend more time with children. The proceeds of life insurance now is the CAPITAL AT WORK. The beneficiaries can sustain their monthly expenses by putting the CAPITAL that gives them interest on a monthly basis leaving the amount in full.

According to Statistics:

Accidents (unintentional injuries) rank NUMBER 4 cause of death among Filipinos (male and female)

If such an unfortunate event happened to you, what effect would losing your income have to your family’s lifestyle?

For males aged 25-59, ACCIDENTS rank as the 2nd highest killer

Out of 10 accidents, 40% are fatal, and only 60% survive.

What this means is that a person will no longer be around to look after and share the future happy times with their family. Even scarier is that 60% of people survive which could actually be worse as they are usually unable to continue with the life they previously enjoyed. This sometimes put an emotional pressure and financial burden on the remaining family members.

How would you feel if you were the one who is causing both an emotional and financial strain to your family?

The majority of people I have talked to never had the opportunity to sit down with someone while they are fit and healthy to determine how valuable and precious their life is to others. Unfortunately, most people only consider this when it is too late.

The average hospital bill is 3 times the average monthly income

The average period of therapy for accident victims is 6 months

Can you imagine not having the ability to provide for your family because of a disability?

Not only do you suffer, but what would be more heartbreaking is that you may have to watch your family suffer and be unable to do anything about it.

Do you want to ensure your family will always enjoy the lifestyle and financial security you have planned for them, even when life takes a turn for the worst?

We can take away your worries….