Over the course of 5 years, the insurance industry has seen a significant increase as more and more people invest in getting one. In a 2020 article by The Manila Times, “The Insurance Commission (IC) sees the insurance industry sustaining its growth this year after its premium income rose by 2.76 percent in the first nine months of 2019.” Goes to prove that more and more FIlipinos are now deciding to invest in better things like insurance.
We’ve covered the basics in the first article entitled "Insurance in the Philippines -- what you should know about it.", and in the second installment of the series, ALLCARE is going to unravel the pros and cons of insurance in the Philippines.
Let’s start on a high note-- the pros of insurance.
Financial protection for both the insured and their dependents
One biggest selling point of insurance is the protection it gives to people, especially to the dependents should the insured suffer an untimely demise. According to an article by PolicyGenius, “[Life insurance] is especially advantageous the more your loved ones rely on your income for their expenses. You want to make sure they don’t suffer financially if you die, and life insurance is the cheapest way to cover them financially for the long term.”
The definition of financial freedom varies from person to person. But in a nutshell, Dave Ramsey said it best: “Financial freedom means that you get to make life decisions without being overly stressed about the financial impact because you are prepared. You control your finances instead of being controlled by them.” In terms of insurance, this stands true as you are putting your hard-earned money into something that prepares not just you, but your loved-ones in the future.
Peace of mind
Nothing beats the feeling of not having to worry about what the future holds for you and your loved-ones, as well as the unexpected circumstances that might come your way. A lot of insurance plans give a wide range of benefits that can range from free medical consultation to hospitalization coverage. For most people, that’s enough to give them a good night’s sleep.
Applying and investing in one is easy
It’s no secret that there are a lot of companies present today that can help you get the insurance that best fits your needs and lifestyle. One of those companies is ALLCARE who has partnered with FWD to provide more people with affordable yet reliable insurance plans.
While having insurance is generally a good and beneficial thing, there are also downsides. Here are some of the cons of insurance, especially in the Philippines.
It can get pretty expensive
With the current pandemic going on, as important as it is to get insurance, many people are still struggling financially and for a normal working-class Filipino, getting one doesn’t go on top of their priority list. It is also not an idea they normally entertain as it can get pretty expensive, especially if you’re joining the insurance game a little late. It would also vary depending on other factors such as your lifestyle and dependents.
If not well-informed, you can get scammed
Yes, there are still scammers who take the hard-earned money of people who they lured into getting fake insurance. It’s always a good idea to double check and research something especially if you’re not 100% sure about it.
While these cons might throw you off, bear in mind that there are companies that will not just provide you with the insurance that best fits you, they will also inform you and provide you with all the necessary information you need, all at an affordable price-- just like ALLCARE.
And that’s it for our second article! We hope you were able to grasp an idea of what the pros and cons of insurance are. For the last installment of our insurance article series, we will be tackling why insurance matters to everyone, stay tuned!