Life insurance is important

LIFE insurance is something not commonly discussed about in Papua New Guinea, unlike elsewhere in the world.
Perhaps this is due to its complexity, the posture of those who sell it or merely our preference for avoiding the topic of our own demise.
But armed with the proper information, you can simplify the decision-making process and arrive at the right choice for you and your family.
Life insurance is one of the pillars of personal finance, deserving of consideration by every household.
If anyone relies on you financially, you need life insurance.
It is virtually obligatory if you are a spouse or the parent of dependent children.
Life insurance does not simply apply a monetary value to someone’s life.
Instead, it helps compensate for the inevitable financial consequences that accompany the loss of life.
Strategically, it helps those left behind cover the costs of final expenses, outstanding debts and mortgages, planned educational expenses and lost income.
But most importantly, in the aftermath of an unexpected death, life insurance can lessen financial burdens at a time when surviving family members are dealing with the loss of a loved one.
In addition, life insurance can provide valuable peace of mind for the policy holder.
That is why life insurance is vital for the bread winner of a single-income household, but still important for a stay-at-home spouse.
In PNG, there is so much reliance on the wantok system that everyone assumes that support will continue for the deceased immediately family after the death of loved one.
While that is part of the lifestyle, we need to recognise the significance of life insurance, as a vital form of financial protection in the event of accident and sudden loss of life.
Talking about life insurance can be confusing. Life insurance is not a savings or investment product and has no cash value unless a valid claim is made.
Already termed as the people’s bank, Bank South Pacific must be commended for its move in joining the industry.
It becomes the fifth life insurance company. This only means, the life insurance industry is relatively young in the country and has the potential to grow if proper information is given out and the policies explained in plain simple English for the benefit of our people who live in rural areas.
It will be a difficult task for BSP to lure their customers to purchase a life insurance policy given the reluctance of many Papua New Guineans openly discussing about their passing.
With BSP joining the industry, it may be able to break down the silence through its various marketing campaigns which has always been detailed. And even if you don’t buy that, the chances are good that purchasing life insurance is still an important part of your long-term and comprehensive financial plan.
Life insurance is a fundamental part of having a sound financial plan.
If your loved ones depend on your financial support for their livelihood, then life insurance is a must, because it replaces your income when you die.
This is especially important for parents of young children or adults who would find it difficult to sustain their standard of living if they no longer had access to the income provide by their partner.
We do not love talking about life insurance because we don’t like talking about death. No shocker there. We can’t know when we’ll pass away.
It could be today, tomorrow or 50 years from now, but it will happen eventually. No amount of money could ever replace a person.
But more than anything, life insurance can help provide protection for the uncertainties in life.
Without a doubt, having life insurance coverage will bring you and your family peace of mind.
It is one thing you can be sure of and you’ll no longer have to question whether they’ll be taken care of when you’re gone.