Getting Insurance or Opening a Bank Account: Which Is a Wiser Choice?

Life can be unpredictable. One day we are healthy, then we’re in a hospital bed the next day. Getting sick, losing your job, or coping with the death of a loved one can be some of the most stressful moments of a person’s life. These situations not only take a toll on your physical and emotional health but also your finances.

That is why we need to prepare for anything that can happen in a snap of a finger. To become secured financially, especially for dire emergencies, you can avail yourself of life insurance with investment in the Philippines. It can mean an additional expense, but it won’t be in the long run. It can be one of the best investments you can ever make for yourself or a loved one.

Saving vs. investing money

A lot of people do not realize the difference between saving and investing. On the one hand, both put your money into good use. The former means you are keeping your wealth for future emergencies. Meanwhile, the latter means you are placing your money in a safe place where it is supposed to grow.

From here, we can already see the difference between the two. You can open a bank account and put your money there as part of your savings. It is easy to access in case of financial emergencies. You can save and save and make it grow over the years.

On the other hand, investing means using your cash into something that has excellent return rates. It can be a risk but can also be worth it, especially if its value doubles or triples over the years and have no money problems in the future. Investing means a lot of things: it can be a real estate property, bonds, stocks, or insurance policies.

Is getting insurance worth it?

You might have encountered an insurance agent encouraging you to get a policy. You might want to hear them out and consider the possible benefits it can give you.

Getting insurance means you pay only the premiums without tax. In other words, there is no tax involved when you pay for your insurance premiums. You have to pay it diligently on the specific periods. It’s like savings accounts, only that most insurance policies offer other benefits, especially in emergencies.

As long as you don’t lay your hands on your insurance payments, then you are good to go. You can choose to withdraw your insurance amount after the premium payment periods are already done. On the other hand, you can let it sit until it becomes mature. Your loved ones will also be secured in case something happens to you (such as an accident or a terminal illness).

When you do decide to get insurance, make sure to check whether you can pay for it religiously. Also, you check the other benefits you can get when availing of a particular insurance policy. It can be an additional expense at first, but you will realize its real value as long as you complete the premium payments in a given period.