Good news: more Filipinos are now getting covered by insurance. However, there are still many who remain uninsured. So, why aren’t more Filipinos getting insurance?

Here are some common reasons:

• They Don’t Think They Need It: Many people believe insurance is unnecessary or that they can manage without it.
• Investing in Bonds and Portfolios: Some prefer investing in bonds or other portfolios, hoping for future high returns.
• Cost Concerns: Insurance is often perceived as too expensive.
• Skepticism About Insurance Companies: There’s a belief that insurance companies are just after their money.
• Financial Constraints: Many feel they simply can’t afford it.

While these reasons are valid concerns, they don’t change the fact that insurance offers significant benefits that might surprise you.

Why Insurance Matters

1. Peace of Mind

Insurance provides peace of mind by ensuring you have financial support in times of need. According to a 2015 American Psychological Association survey, money is a major source of stress, which can even impact your health. Although this study was conducted in the U.S., the concern about financial stress is universal. Insurance helps reduce this stress by guaranteeing that if you or your family face financial difficulties, you have a safety net to rely on.

2. Protect Your Assets

Insurance safeguards your valuable assets. Life insurance, for instance, is useful for estate planning and can provide income if you face permanent disability. Health insurance takes care of medical expenses, while home and auto insurance protect your physical assets.

3. Rewards and Investment

Some insurance policies, like variable-linked insurance, combine financial protection with investment opportunities. Part of your premium is invested in stocks, bonds, or mutual funds based on your investment profile. Other policies offer features such as money-back guarantees or cash value accumulation.

4. Adapt to Life Changes

As life progresses—buying a home, having children, or changing jobs—your financial needs evolve. Insurance can be adjusted to provide support through these various life stages, ensuring you’re financially covered as your circumstances change.

5. Financial Freedom

Insurance can prevent you from depleting your emergency fund or sacrificing your children’s education savings during a major crisis. It helps avoid the need to sell significant assets or fall into debt, maintaining your financial stability.

6. Great Retirement Buffer

If your SSS pension isn’t enough to support your retirement dreams or keep up with inflation, insurance with an investment component can serve as a valuable buffer, helping you achieve a more comfortable retirement.

Insurance isn’t just an expense; it’s a vital investment in your future and the well-being of your loved ones. It’s a way to honor your hard work and commitment, ensuring you’re prepared for any uncertainties that life might throw your way.