Misconceptions of Life Insurance

Only 2% of the Population of the Philippines have bought a Life Insurance and roughly 10% of it is covered by their companies. With this figures it’s quite disturbing, Filipinos are stereotyped with things they didn’t know yet and just thinking of it as liability and usually taking for granted the chance of having one in their early years in life and in the latter part would regret why not having one. Below are the listed misconceptions on buying a life insurance:

Misconception Number 1: I don’t need it.

If you have someone depending on your income, you need Income Protection

Reality is you need to protect yourself from unforeseen risks especially if you have dependents, you need to put that in mind that there is NEED to protect your income. One ultimate reason life insurance exists it is because of there is a NEED for income continuity should you be the bread winner of your family. Are you willing to be a burden to your dependents when you’ll be hospitalized with critical illness or perhaps you will be out in the picture for life?

The truth is as stated earlier life insurance will protect your dependents for a sudden economic change or loss, this meaning you’ll be hospitalized caused by critical illness or any lethal accidents that could put an end to your life.

Life Insurance to can cover up the expenses when you get hospitalized due to critical illnesses, even if you are covered with PhilHealth or HMO of your company, but benefit amount can be limited. Surely medical and other recurring bills may arise and you’ll surely be bankrupt with debts too.

These may sound be very morbid or scary but that is the truth. Life insurance is a great help in times like this, as they say failing to plan is planning to fail. Do you want to fail in Life? Be insured in Life. Protect yourself and your love ones.


Misconception Number 2: I can’t afford, I don’t have enough money!

Filipinos think that life insurance is an unnecessary expense or it’s expensive not knowing that some premiums are affordable and be paid in quarterly or monthly modes. Look for a better insurance at the market based on your need and affordability.

Misconception Number 3: I’m not in a hurry!

People think they don’t need insurance because they are young and healthy or they are single and have no dependents but it’s always cheaper to buy insurance when we’re young.

Knowingly in time all people goes to experience similar timeline in life, we grow older. Since Insurance company is a business of risk management, as you grow older or as your age increases the rate of premiums also increased. Since as we grow older there is a high probability that we could acquire illness making us uninsurable.

Misconception Number 4: I don’t get anything from it!

Everything in this world evolves, as well as the Life Insurance. Today, when you will consider purchasing life insurance, you’ll get to choose if you want a pure insurance, insurance with endowment benefits and insurance linked investment(VUL). VUL is the most renowned of all, since you get protected and having a mutual fund like investment as well that grows overtime with the help of compounding interest but depends on the performance of fund that has been choose.


Should you have any questions or reactions please don’t hesitate to leave a message.


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