When there is an echoing silence filling up my head as the sky turns dark, I can’t help but think of how the future will turn out for me and my loved ones. Yes, what I wanted was the best for us. As much as possible, I want to do everything I can just to have the life we truly deserve. However, there are always uncertainties in life. We’ll never know when we’ll feel the warm embrace of angels up there with the higher being. We are not even sure if we’ll end up with the angels, though.
Anyways, with all the uncertain instances that can happen throughout life, whether it leads to a good or bad thing, we should always be ready—and that is where insurance comes in.
Just to give a short background, I am a third-year Financial Management student currently in the works on a research paper together with my group mates. Our topic?
You could have guessed it right? Yes, it is all about insurance. Working on our paper, we have found out that Filipinos are still hesitant to avail of insurance policies. The 2021 Financial Inclusion Survey Report of the Bangko Sentral ng Pilipinas shows that from 23% in 2019, only 17% of adults own insurance in 2021. That indicates Filipinos’ reluctance to purchase insurance.
We are afraid of what we don’t know. That is the case for most of us and that translates to some being distant from purchasing insurance. We are hesitant about the things revolving around money. We are afraid of things such as investments, savings, and insurance. This significantly affects how our future will unfold. As we continuously fail to manage our finances because of our lack of financial literacy, we fail to see the importance of insurance leading to a lessened ability to cope with unforeseen events in the future.
Most Filipinos have a misconception regarding insurance, especially those who are part of the older generation. They believe that insurance is not suitable for them as it is just for rich people and those who prepare themselves for death. This thinking of the older generation was passed on to the younger generation leading to them believing in those values too. As we respect the older generation and we value what they advise us, we are inclined to believe what they say. I have experienced being swayed by the misconception that the older generation ahead of me believed in.
However, now that I gained knowledge from my research, I understand how beneficial insurance is in protecting ourselves from potential financial setbacks.
People also have this misconception that insurance equals death. Well, yes but no.
Yes, some policies only benefit our loved ones after our death, but some policies may be claimed while we are still alive. There are plans called whole life and endowment plans which have dividends and payouts that can be withdrawn from a policy. There are also insurance plans that allow people to take out a loan in case of emergency financial need. In these cases, loans won’t have to go through credit checks and might have lower interest charges than other lenders.
People also think that insurance policies are only for those people of old age. “I’m too young to purchase insurance,” we say. However, being young and insured can make a lot of great benefits for us. Insurance premiums or the payments we make for insurance are typically more affordable when we purchase it at a young age. If insurance is not claimed yet continuously renewed for years can lead to higher claims in the future. Some plans also cover more than just death claims, so insurance is better and more beneficial for younger people.
Though insurance still is not generally accepted by most Filipinos, we need to understand that it is not just something that we purchase because it is there. It is a tool that can help in times when there are emergency needs that arise. It will help not only prepare for whatever happens in the future, but it will help in securing the future for your loved ones once you are not around anymore. They can live worry-free as they can take care of certain expenses such as mortgages or education, which we (I hope not too soon), would no longer be able to take care of.
Insurance as a tool for mitigating risks can be a great help in preparation for what might happen in the future. Be it hospitalizations, illness, retirement, or death, insurance can serve as an armor that protects in the most threatening situations. Insurance is like a friend—one you can turn to in times of financial need. I am not saying this for an insurance company or whatever.
I am saying this because it will help us in securing a better future than we deserve. I am not forcing you to purchase an insurance policy. My point here is it could help you in life’s uncertainties. Life is unsure, it’s better to be insured. Have that unsure but insured life.
You know, “just saying”.
