No Medical Exam Life Insurance | Would you still invest on life insurance policies?

After the financial meltdown of AIG, considered as one of America’s oldest, biggest, and most stable (or at least, we have all led to believe) insurance companies, would you still consider purchasing a term life insurance policy? Or, even trust your future with a ‘no medical life insurance’?

I have always believed that any type of insurance policy purchases is actually an investment in the future. Oh, I still believe it is.

While many of us would place insurance premium payments at the expense column of our personal finance books, I chose instead to have mine under the investment column. In fact, in spite of the current state of the economy and the financial topsy-turvy at Wall Street (forgive my pessimism and sarcasm there) I still trust my insurance company and the coverage it guaranteed in my policy. Premium payments for my health and term life insurance are on the top of my priority list. Are you doing the same?

Any type of insurance is to be regarded as an investment for the future, especially for unforeseen events such as illnesses, accidents, and/or even death. We owe it to ourselves, and to our families. Thus, setting aside a portion of our income on insurance payment premiums should not be disregarded or neglected.

These days, many insurance companies have decided to lower their premium rates and increase the value of their policies.

Uh, AIG? The bonuses? I know. But in my mind, this should not prevent us from trusting other insurers. Would you?

Moving on, would you consider purchasing a ‘no medical exam life insurance' policy? It is a lot cheaper, they say, than regular life insurance policies that require strict medical examination.

However, in my mind, isn’t it the primary reason why you need to undergo this medical examination is to determine how much premium you are going to pay and the extent of the coverage? Meaning, if the results indicate that you will likely live longer or stay healthy throughout your adult life , you will pay cheaper premiums. Conversely, if the results show that you have signs of early ETD, then you be charged higher.

Here is my take, simplistic as it sounds: To me, regardless of the medical tests results, whether it is a no medical life insurance policy or not, I will not hesitate to purchase one for myself and for my love ones. Purchases today will always be cheaper than tomorrow’s.

This is just my two cents. What is yours?

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Posted on 3/27/2009 4 comments

Dow drops below 7K | When I read this news, I look at my wallet

When I started reading my RSS news last Tuesday (03 March 2009), I had to take out my wallet and count the money that I have, check my credit card balance over the phone, and my savings account online. I must admit, I panicked. Who would not? The headline reads:

“The Dow Jones industrial average plummeted below 7,000 at the opening bell and kept driving lower all day, finishing at 6,763 — a loss of nearly 300 points. Each of the 30 stocks in the index lost value for the day. “ (AP | read full story)

My feelings are shared by many investors and stockbrokers, especially when AIG announced their $62B loss for 2008 4rth Quarter. I wonder if the bail-out package they receive will suffice to resuscitate their financial health.

As much as I disliked bad news, I cannot help but look into what is happening in the international money market. For me, bad news can be a good starting point for introspection, reality checking, and a basis for conceiving proactive solutions. The prognosis is bad. The recession is still wreaking havoc. But does this means that we stop living? Or stop making a living?

It is true that money, while essential, is not all there is.

Oh, crap! You know that I am just trying to appease myself there.

However, if we look things in a lighter perspective, we will begin to see that everything is but temporary and that this economy ( as one prominent economist argues) is bound to rebound (pun intended) whether we tinker on it or not. I agree because, we are all typically resilient in adversities. Nature taught us that.

The clichés "saving for the rainy days" and "enduring the winter of your life" are but examples of many things that we tend to overlook. We learned these from nature itself. The changes in the weather and natural catastrophes have taught us to prepare, and most of all survive. What we have not really learned is living in during the good times.

Good times make us complacent, and sometimes irresponsible. We tend to forget what we have been through and the bitter lessons learned.

I will continue reading the news, bad or good, regardless if my wallet is empty or is bulging with money because the news reminds me of things that I am NOT supposed to do with my finances when good times come.

What is our take?

Again, on my metaphor of the weather, allow me to quote Pietro Aretino:

"Let us love winter, for it is the spring of genius."

With this in my mind, in the economic context means: let us value what this economic downturn brings, because it allows us to think of better ways of managing our personal finances.

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Posted on 3/09/2009 12 comments