Insurance in the Philippines-- what you should know about it
- Feb 23, 2021
- By ALLCARE Team
To say that insurance was undervalued in the Philippines is an understatement.
But that is not the case anymore. Over the years, the insurance industry has seen significant growth in the country. More and more Filipinos now understand the importance of being insured and being prepared for the future. However, there are still millions of Filipinos who are clueless as to how important insurance is and they see it as just a luxury only higher-class people can afford.
That is why this February, the National Insurance Month, ALLCARE will be releasing a series of articles that will help Filipinos have a better grasp at what insurance really is and how important it is for every Filipino.
Let’s start with the most basic, yet commonly overlooked question: what is Insurance?
According to https://www.investopedia.com, “Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company.” To simply put it, the insured will pay the insurance the necessary fees to keep them insured.
Are there different kinds of insurance?
Much like choosing a streaming site to subscribe from, there are also different kinds of insurance one can invest in. From vehicle to property; education to health & life insurance, there is a type of insurance to keep one secured from the future and any unforeseen circumstances that might occur. In these trying times, health and life insurance are more than just a “good to have” thing, it has become a necessity.
It is no secret, though, that getting insured is not a cheap commitment. For a normal working Filipino, getting insurance might be more than one can handle. Unbeknownst to many, though, there is a thing called microinsurance. It’s just like the normal insurance products, but it varies in some aspects. According to www.coins.ph, “One of the biggest differences between regular insurance and microinsurance is that microinsurance is specifically made for low-income households and individuals who may not have the credit score or access to financial markets.” With the rise of microinsurance during the past years, this gives even more people access to affordable insurance products.
Lastly, what are the things to consider before getting one and are the benefits really good?
There are quite a number of things to consider before investing in insurance, to be more specific, insurances relating to health and life in general. Normally, these considerations are the interested party’s age, income, who the dependents are, and even their lifestyle. These will play a huge role in determining how much the contribution will be, and what the best insurance plan to get is.
Insurance, of course, has a lot of benefits. First and foremost, it will keep not just the insured, but also their beneficiaries have a secured future. It is also a no-fail investment that also encourages people to spend their money in a wiser manner. And in an economic standpoint, insurance help boost our country’s economy, According to https://www.yourarticlelibrary.com, “Insurance generates significant impact on the economy by mobilizing domestic savings. Insurance turn accumulated capital into productive investments. Insurance enables to mitigate loss, financial stability and promotes trade and commerce activities those results into economic growth and development.”
Ultimately, there are a lot of insurance providers one can talk to. The best insurance companies should be able to provide flexible plans to the insured and other interested parties, just like FWD. That is why ALLCARE has partnered with FWD as the company is committed to providing the best services to everyone.
And that concludes the first article of the series. Touching base with the basics of insurance is a good way to lay it down to people who are not that well-versed in the insurance industry. To know more about the ins and outs of insurance, stay tuned for the next article we will be releasing.