“Physically you are a human being, but mentally you are incomplete. Given that we have this physical human form, we must safeguard our mental capacity for judgment. For that, we cannot take out insurance; the insurance company is within: self-discipline, self-awareness, and a clear realization of the disadvantages of anger and the positive effects of kindness.” (Dalai Lama quotes -Head of the Dge-lugs-pa order of Tibetan Buddhists, 1989 Nobel Peace Prize)I will not attempt to allegorize insurance as the Dalai Lama did there. However, I would like to take the issue of ‘safeguarding’ the welfare of our family, which we can do through insuring our self and them. How do you protect your family’s welfare?
Actually, there are many ways. Businessmen try to build business empire to leave as a legacy to their family members. Some invest on properties. While some save money in the bank. As an average employee, earning a meager wage, how do you protect yours? The value of our 401k has lost its value due to the current financial crisis, so what is the most feasible, cost-effective, and affordable alternative?
One thing comes immediately to mind: term life insurance policy with a refutable provider.
Term life insurance is probably the simplest and cheapest form insurance. Although the extent or time of the coverage is already predetermined, for example 10 or 20 years or until retirement age of 65, it is nevertheless a practical alternative for an average employee.
However, the first thing you need do is to find out what policy or plan that suits your needs. Due to the higher cost of living and the increasing insurance premiums, it is important to figure out what you need and what you can do without. Also, you want to make sure that you have the right coverage should the inevitable happens. Get one today while it will cost you less. For as Kin Hubbard (American Humorist) remarked:
“Fun is like life insurance; the older you get, the more it costs.”