by Lovely A. Carillo
The recent floods in Metro Manila and some areas in Mindanao caused by typhoons Ondoy and Pepeng have brought to mind the importance of getting a life and property insurance.
Most people prefer to get property insurance if only to have something to rebuild their lives after a calamity. However, typhoon Ondoy made people realize that even a general coverage or property insurance could not provide that security blanket you need when it comes to getting all the financial help you need during and after a calamity.
For one, most property insurance holders were told that the properties destroyed and lost during the typhoon Ondoy were not covered by their insurance policies because it was considered an act of God. This is a “catch-all-phrase” for acts of nature that cannot be controlled like a hurricane or an earthquake.
Filipinos have often considered life insurance a taboo, as it makes them realize their mortality. The deaths arising from the recent calamity has however placed life insurance in focus as it may be the only thing left to ensure that your loved ones will get something to continue with their loves even when you are gone.
“We have not really seen a noticeable increase in demand for life insurance here in Davao as an aftermath of typhoon Ondoy’s destructive effects,” said Paul Borromeo, President of Borromeo Insurance Agency, a general agency of PruLife UK. There may be more awareness towards protection though with the reality that anything can happen anytime, he added.
Borromeo said it is not however the duty of the people to seek out insurance agents but it should be the other way around. It is the responsibility of the insurance agents to inform and educate people about the benefits of having a life insurance or any insurance product for that matter, he added.
The choice of an insurance product actually depends on your objectives and your budget. If you want to be protected from accidents then there’s always an accident insurance which you can renew every year.
However, he said, if your objective is to protect your family and allow them to continue living their lives even after you are gone then you are better off with a life insurance. This type of insurance does not cover suicide except after a two-year period.
When asked if Dabawenyos are already aware of the importance of having an insurance policy, Borromeo said it is not really a matter of awareness but of reception. Making the people aware of the benefits of insurance is the job of the agent, he said, but reception is the job of the client.
“The main reason why you are buying insurance is your love for your family,” he said. This is further bolstered by the trust you have in your agent.
Borromeo recalled one client who was in his early 20s and who was paying his life insurance policy for only four months when he was gunned down. He was the breadwinner and while his family was grieving about his death, his one million insurance policy made sure they were well provided for even after his death.
He said the insurance business can actually stimulate the economy and provide more jobs for the people.
A 30-year old can already get a P1 million insurance plan by paying P1,000 every month, for life. It is important that the insurance plan you will be getting is customized depending on your objectives, your lifestyle and your income. “An insurance plan is not some type of clothing that fits all,” he said.
However, he said, people who have limited employment or who can guarantee their employment only up to a certain period can have their insurance policies tailored fit to their paying capacity so they can opt for a plan payable for 5, 10 or 15 years depending on their preference.
He said most life insurance now does not only ensure that your family will have something to live on when you die. Most insurance companies provide savings for life insurance which allows insurance plan holders to withdraw from their savings when they need money after a certain period of paying their insurance.
Borromeo said a life insurance company is sustainable and is stable because it is very long term. He added that no insurance company has closed in a hundred years so people are assured they will be getting their money’s worth.
