Term Insurance Only, Please...

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Recently, I just applied for a term insurance from AXA. When I saw the application details, the insurance name is called Flexi Protect. You know insurance companies has a lot of names under their sleeves for any type of insurance you can imagine. I wrote an e-mail to the insurance agent who gave me a draft of the insurance policy so that I can take a look at the program, coverage and costs.

 Initially, I was given a Flexi Protect policy with a few riders attached into it. Insurance riders are additional coverage with additional cost. Insurance riders are called as such because they "ride" on main types of insurance. They cannot be sold alone or separately. They are dependent on main insurance policies.

During the coverage period, if you die prematurely, your loved ones (beneficiary) will receive the insured amount from the insurance company. These funds reduces the financial burden of your loved ones considerably for the burial and wake expenses. At the same time, if you shoulder most of the financial burden of your family, your loved ones will have something to fall back while they cope up and adjust with your death.

The covered insured amount is Php 2.4 M and I'm paying Php 1,000 per month. I asked for a lower premium because the riders that were initially suggested were already removed. However, the agent told me that they have a minimum payment threshold and I could not go lower than that. Anyway, since the insured amount went higher, I did not squabble with the agent anymore. I trust him.

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I know the covered amount is more than enough to cover my daughters tuition fee in case I'm called by God to return home with Him. Also, my wife won't struggle that much in raising our daughter alone. One million in the stock market over a long period of time will be enough to cover my daughter's education. That gives me a sense of security in my daughter's future. Since I basically shoulder my family's major finances, I need to get an insurance to avoid the shock of financial loss.

Term insurance is the most basic type of insurance. From the word "term", it means a specific period of time. It can be 1 year, 10 years or 20 years. It is the cheapest type of insurance. I don't need investment related insurance products because I want to invest on my own. 

Since I only wanted a term insurance, I ended up with a term insurance. No ifs, no buts.