Why do I need an insurance plan?
This is a question many Filipinos may have asked themselves.
A key finding from the country’s life insurance organization shows many Filipinos understand the importance of insurance coverage, but hold off on getting one for various reasons. Some of them are grounded in everyday realities, others are myths.
Here are five insurance facts most Filipinos learn too late that we think you should know now to help you plan smarter and avoid costly mistakes.
Fact 1: The Best Time to Get Insurance Is While You’re Healthy
“I’m Healthy, I Don’t Need Insurance” is a common myth about insurance, and the same is true for just about any kind of plan outside health and life. Most people think they only need insurance when they need it, like when they get sick or their property is damaged.
The fact is that when you’re healthy is the best time to get insured.
One of the biggest reasons is simple: it costs less to get insured while you’re healthy. Fewer issues with your health or your property means your premiums will be a lot less. The reason it’s called insurance is that the plan becomes your backup when your health fails or your property suffers damage. If you’re insured while you’re at your best, you’re ready for when something bad happens.
Fact 2: Insurance Can Be Affordable
Another prevailing myth is that “Insurance Is Only for the Wealthy.” Most people think insurance plans are expensive products that only people with deep pockets can afford. In fact, recent studies of most Filipinos show we understand the need for insurance but choose to or have to prioritize other needs first.
While it’s understandable that you must deal with what’s necessary first, the Philippine insurance industry has evolved over the years to have products and services that can cater to all income brackets. From low-cost health and life plans to entry-level VUL packages, you can find insurance that can fit your budget.
Fact 3: Employer Benefits Alone May Not Be Enough
For those who are employed, you’re probably thinking your company-issued health benefits are enough. After all, they allow you to regularly visit your doctor and get some tests done. You’re also probably thinking there’s always PhilHealth to back you up.
The fact is that while these measures are adequate, they don’t often cover anything beyond the basics and some hospital coverage. Company HMOs, unless your employer is extraordinarily generous, are only meant to keep you healthy enough to keep working and fulfill health requirements set by the host city of the business. They might not be enough to cover the kind of expenses that come with bigger health issues. Many Filipinos know PhilHealth alone may not cover major medical costs.
Having your own HMO gives you more control over your healthcare and protection during major medical emergencies. You dictate the coverage. You can plan your coverage, and you know it’ll be there if and when you need it because it’s you who pays for it.
Fact 4: It Pays to Start Young
This debunks the age myth in two ways. The first is that the best time to get coverage is when you’re young because it’s usually when you’re at your healthiest and, most importantly, have plenty of time to pay the premium. The fact is, insurance gets more expensive as you grow older. So getting a plan while you’re young is actually when you should be signing up for one.
The second myth is that young people can’t afford insurance. This might be true in most cases, but there are now insurance products that allow the parents of young people, or even the institutions they are under, like schools, to insure them without it being expensive. At the same time, certain VUL products allow young people to begin investing very early, even with relatively small amounts. In the same way that life and health coverage is cheaper when taken early, investments made early reap bigger benefits.
Fact 5: Savings Alone May Not Be Enough
A common financial myth among Filipinos is that you don’t need insurance if you have savings. While having money in the bank is certainly good, it sadly won’t be enough unless the number of zeroes before the period in your savings account is several digits long. And even those people have insurance.
Insurance is made to cover expenses caused by emergencies. These are not supposed to happen on a regular basis. But when they do, they often cost a lot. A medical emergency or significant property damage due to a natural calamity can easily wipe out your savings.
On the other hand, insurance plans were meant to deal with such expenses. Those premiums you pay, often just a few thousand pesos a month or every quarter, can mean big savings for you if the emergency they cover happens. It means ER and ICU coverage, and a good room at top hospitals. It means a quick recovery after substantial damage to your property. It’s how your life doesn’t fall apart if you lose your source of income due to disabilities.
Savings help, but insurance protects you from costs large enough to drain those savings fast.
Protect Your Future with the Right Coverage
The insurance industry has grown in the last few decades from offering life and health plans to providing coverage for much of what you want secured, as well as providing financial security through ways to grow your personal wealth.
Insurance is not only about preparing for worst-case scenarios. It is about protecting your health, your family, your savings, and your future. The right plan helps you face uncertainty with greater confidence and financial security.
Whether you are starting young, protecting your family, or reviewing your current coverage, the best time to plan is now.
Reliable Insurance Brokers are ready anytime to help you choose the best plans for your budget and needs. Just give us a call when you wish to know more about insurance products, and we will guide you through the selection process.
Contact Information for Inquiries and Support
If you have any questions or need assistance with your insurance, feel free to reach out to us:
- Call: +63 2 8631 9285 to 86
- Mobile: +63 917 138 5120
- Email: info@reliable-insurance.ph
- Messenger: m.me/reliable.insurancebrokersph
Sources:
- Rappler (2025, August 3), Filipinos value life insurance but are slow to purchase – study.
- Alliance PNB (No Date), Debunking the Common Life Insurance Myths in the Philippines.
- Paramount Direct (2026, April 17), Top Insurance Myths in the Philippines Debunked.
- Moneymax (2024, April 18 ), Don’t Have Insurance Yet? Stop Believing These Insurance Myths.
