Sunday, September 28, 2008

Death and Taxes

A lot of Chinese people (and Pinoy, too, I believe) do not believe in insurance. We all think that it is just a waste of money and that we're actually throwing hard earned money away. I used to be one of those people, since my parents were not believers in these.

However, when my father passed away at the relatively young age of fifty eight after struggling with cancer, I finally realized our mortality. People don't live forever. We're bound to die someday. That's an inescapable fact. The only thing unsure about our death is when we will die and how we will die. After experiencing several deaths in the family, I know how difficult it is for the family and friends that you leave behind. Not only do they have to deal with the emotional upheaval of losing a loved one, they also have to deal with financial problems. Think about this: It's expensive to die. Ironic, isn't it? Wake and interment are expensive, but more than that, the family has to think on what to do in order to earn -- if the one who died is the family breadwinner. If the deceased has a lot of properties, his heirs also have to shell out a huge amount in inheritance taxes. Good if the inheritance is in monetary form. The problem is if the inheritance is in the form of lands or real estate which have a high market value but the money simply does not have enough cash to pay off the inheritance tax.

I believe that we all should get an insurance quote so that we know what's the best plan for our families when we have to leave them behind in the world of the living. That's actually a proof that we love our family -- we've actually taken some steps in ensuring that they won't run into too much financial difficulty when we're gone.

Since I'm not rich and I still have a small boy, I got insurance that would help whoever takes care of him when I'm gone, hopefully giving him a good life and a good education.


Anonymous said...

Yes, you are right. We are on the same boat on this matter. I have 2 life insurance, paying for interment policy and lot.Dying at this time is very expensive isn't it?