30/09/2025
You Don't Need Life Insurance Anymore: Signs You Might Be Ready to Live Without Life Insurance
I have a friend, Mr. Uy, he's a very successful business owner in South Luzon. He once told me over coffee:
"Franco, hindi naman sa pag ano, pero hindi ko naman na talaga kailangan yang mga insurance na yan"
At that moment, napa-isip talaga ako. What could have been the reason to his bold claim?
So our conversation over coffee went on and after hearing his story, I realized — he had a point.
There are moments in life when it might make sense to let go of your policy, or at least, rethink if you still need the same coverage.
Pag usapan natin ang mga ito.
1. Kapag “Self-Insured” ka na
Being "Self-insured” simply means you have enough money set aside to cover major risks like — sickness, accidents, disability, and yes, even untimely death.
If you have:
- Emergency fund good for years
- Investments that earn steadily
- Assets that can be liquidated easily
…then it could be that you don’t need an insurance company to back you up anymore.
BUT — and this is a big BUT — self-insurance only works if your money is actually accessible and not tied up in illiquid assets, or yung mga assets na mahirap iconvert into cash.
Kasi kung lahat ng pera mo ay nasa lupa at condo, mahirap ibenta yan agad-agad when you or your family needs the cash
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2. Wala ka nang dependents
Life insurance is really for the people who depend on your income. If your kids are all grown up, may trabaho, and can stand on their own — or if you’re widowed and living independently — you might not need life insurances anymore.
However here's what a lot of individuals fail to consider: YOU are your own dependent.
Minsan, kahit wala ka nang ibang sinusuportahan or dependents, yung future-YOU will still needs support.
Think:
- Will you have enough for medical care in old age?
- Gusto mo bang may maiwan pa rin na legacy kahit walang anak?
- May plano ka bang mag-retire ng maaga?
Life insurance can still play a role here, lalo na kung gusto mo ng lump sum in the future para pangdagdag sa retirement mo or pang-cover sa potential health costs.
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4. Kapag hindi na practical ang premiums
May mga times na yung policy itself ay burden na — the premiums (the fees you pay for insurance) are too high compared to your actual need or income capacity. Now sa mga ganitong instances, instead of cancelling outright, you could:
- Downgrade coverage or reduce the riders
- Shift to a smaller policy
- Use paid-up options kung meron sa policy mo
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5. Kung may ibang financial tools ka na mas swak
Baka dati insurance was your main financial safety net, pero ngayon you already have other sources like:
- Passive income from rentals
- Large, stable investments
- Business income streams that can cover risks
In this case, insurance might become less essential — but it’s still worth reviewing kung if may financial “gaps” pa rin. Regular financial planning will ensure na itong mga gaps na ito ay appropriately filled.
Attend our Free Webinar on Personal Finance Planning here:
https://bit.ly/CCFinancialPlanWebinar
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6. If your life insurance policy already served its purpose
Some people buy insurance for very specific goals and financial obligations:
- To ensure that the house loan is paid in case something happens
- To ensure the kids’ college tuition will be funded
- To protect the family during working years
Kapag na-fulfill mo na yung goals and financial obligations mo — like your loan fully paid, kids already graduated, savings fully funded — you may consider looking into turning your insurance policies into cash by surrendering them or making a withdrawal if it comes with an investment account.
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Now to close this, para malaman mo if you can be free of being insured, you can go back to this questions:
- If I lost my income tomorrow, sino ang maapektuhan?
- If something happened to me, may enough bang maiiwan to handle my obligations (mga maiiwan na utang) and my final expenses (expenses needed to bring you to final resting place)?
- Am I absolutely sure my assets are enough and accessible?
Kung yes lahat, then maybe you’ve graduated from needing life insurance. If not, it’s worth keeping at least a basic death coverage — just for your peace of mind.
Life insurance isn’t forever for everyone — but maybe for most, it’s a long-term need. The real question isn’t “Do I still need it?” and "If I let it go, am I truly ready for the risks?”
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Here at Insurance Planning PH we strongly believe that the a strong and solid insurance protection portfolio starts with strong and solid financial planning.
Attend our Free Webinar on Personal Finance Planning here:
https://bit.ly/CCFinancialPlanWebinar
Learn about common Life Insurance linggo here:
https://bit.ly/Life-Insurance101
I am Franco Madrid and I help Filipino employees, professionals, businessmen, leverage on insurance solutions for their personal finance goals.
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