Insurance still is kind of bizarre here in the Philippines, although most of the people are now aware of its importance, they still have a very limited knowledge about it. So here, I listed six things Filipino people don’t know about insurance:
1.Insurance is for all ages
Most Filipinos tend to think that they are too young to get an insurance but to tell you frankly even babies can have it, in which the investment portion of their fund can be used for their college education.
Insurance is also easier to get when the client is younger, why? It’s because, health complications are more likely to occur during old age. Also it is way cheaper when you’re younger compare when you're older.
Another reason is that, when we are already building our own family, our priorities starts to change which causes people to stress over in handling their finances. This can be eliminated if they had handled their finances well on their younger age.
2.Insurance has savings/investment component
A lot of people think that insurance can only be used when a person dies, this could be true depending upon the type of insurance, but most life insurance companies offer variable unit-linked plans which has investment component that are truly helpful especially for those people who want to invest but has limited knowledge with stocks.
3.Insurance has living benefits
Apart from having savings/investment, insurance has other living benefits which aim to ensure that you won’t be spending your hard-earned money you’ve been saving for your travel or for you dream house in case an emergency situation happen to you (e.g. accidents or illness). Life insurance can also provide daily hospital income to replace the income you’ve lost due to confinement.
Another good example of life insurance living benefit is the Philam Vitality app which rewards clients for living healthy.
4.Insurance is for healthy people
One most common mistake of people is not getting insured when they are still healthy. I once met a client who wanted to have insurance, however, he is already tagged uninsurable due to his health condition.
Like what a famous quotation says, “It’s better to have it and not need it, than to need it but not have it.”
5.Insurance is affordable
Insurance is affordable. No, this is not a lie.
People say “Insurance is for the rich”, what they don’t know is that insurance can be tailored fit with their budget. If you can save 50 to 100 pesos each day, (that’s only worth a meal or your one day load, not even enough for a cup of coffee in Starbucks) trust me, YOU CAN AFFORD INSURANCE.
6. Insurance has limited-pay plans
Most people are not aware of this feature of life insurance plans. People think that in order to be insured you have to save until the day you die. However, life insurance companies developed plans that are payable for limited time for as short as a single premium, 3 years, 5 years, 7 year, 10 years, and so on.
I hope I was able to help you clear things out regarding life insurance and if you're interested in knowing more about it you may send me a message on my contact page or leave a comment below. Also, if you want to schedule a 1-on-1 financial planning session or to attend a financial planning seminar just click the button below.