Industries are one of the major driving forces of our economy, but workers in this sector sometimes have the lowest income. They are sometimes less paid even if their nature of work involves hazards. Hazard paid are not even in their benefits. Thus, these workers need to find a way to somehow earn money that can be used by their families when uncertainties happen. Insurance is a good way of leaving a cleanup fund for the family, but a low-income earner cannot afford regular life insurance due to high premiums. And one of the ways for these low-income earners to have at least a fund when they pass away is the so-called industrial life insurance.
Industrial Life Insurance is a type of insurance offered or sold to low-income workers with a lower face value than other life insurance kinds. Sometimes this is called burial policy insurance or small death benefits. Collection of premiums is on a weekly or monthly basis by the insurance agent. This policy can be issued even without a medical examination.
For a worker who cannot afford other types of life insurance due to higher premiums, this industrial life insurance is a sure fit. Still, over the years, this type of insurance has declined due to the availability of affordable group life insurance, average income, and recognizing of the need for insurance. Since the premiums are collected weekly or monthly in the policy owner’s home, the administrative expenses can be more expensive compared to other life insurance.
The purpose of industrial life insurance is to at least be able to have a cleanup fund for the expenses left by the insured, and because the value is not much, this will not give protection to the family. Another reason this industrial life insurance is to educate low-income earners on the habit of savings for them to have readily available funds in case of eventualities.
This type of life insurance may not appeal to those individuals who can pay a higher premium for better life insurance coverage. But for low-income earners, having a small amount left to the family during uncertainties is already a big help. This may not be enough funds to cover all the expenses or give protection to the family but being able to leave a certain amount of funds to your family to somehow ease the burden of paying some expenses left by the insured is already a blessing.
Since industrial life insurance has been declining over the years, I hope that this type of insurance can rise again. This is beneficial and a great help in aiding financial support in uncertain times for most of our industrial workers.