In 2012, I signed up for a life insurance policy. I just started working in retail at that time and I just wanted to put my money to something that can will give something in return. I was approached by the insurance seller and automatically I just signed away. I already knew beforehand that the insurance company has existed for a considerable amount of time and so far I haven’t heard of complaints.
I did not purchase health insurance because that one was covered by the company I was working with and it’s expensive. At that time I also have a separate life insurance paid solely by the company without any copay.
After 5 years, I was finally able to pay it off. I could have paid it earlier but I decided to stick to the original payment schedule and duration.
What I learned in the span of 5 years?
Five years is a long time. A lot can happen in 5 years. I resigned, became unemployed, got broke, had a new job, affected by Yolanda, my grandfather was hospitalized, my sister getting married, etc.. A lot can really happen in 5 years that will affect your finances and can be a reason for you to fail to pay it off. I can’t imagine how people with house mortgage of 5-10 years feels or goes through.
I don’t earn much that the premium payments feels like the amount you spend on your groceries or a night out with friends. Insurance payments can be expensive for ordinary employees that you feel like you could have used the money to spend on something you need now and not something that you will need in the future.
I should have signed up for a better insurance coverage. I wish had the financial discipline and figured out that if I spend wisely I can actually pay for a higher premium with a better coverage. What is done is done. I’m considering signing up with another life insurance but I’m not rushing. I have already set my goals for 2017 and a new insurance is not on the agenda.
I truly encourage those who have just started working to get at least one. The sooner you sign up for it the sooner you get done with it. Its like something you get to tick off your list before life and other responsibilities shows up such as starting a family and children’s education and even before you start spending for medical problems due to old age.
I don’t earn that much and my financial priorities weren’t straight, I had those moments wherein I wished I could have used the money to buy new clothes, watch a movie, eat out, etc. I am truly grateful that I’m done with it. If I could go back, I wished I had known minimalism earlier. That way I could have a lot of savings and at the same time enjoy the process of paying it off.