Mandatory Life Insurance for all Filipinos

Mandatory Life Insurance for all Filipinos

Last week, I had an unusual date with my husband.  I went with him to have our car registered.  It’s the first renewal registration since we last bought it 3 years ago.  So, there I was, bored while waiting.  When I suddenly noticed the sign board below, saying:

As I was told, part of the requirements in renewing car registration is:  Insurance Certificate of Cover (COC) – a compulsory insurance coverage for cars as mandated by RA 4136. The amount of the insurance package is as seen below:

Since I love thinking, I ponder with  the question: What if Life Insurance is also mandatory to each Filipino? Or at least to the breadwinners in the family, namely, the Parents.  What could happen?

As I marvelled at this thought, I remember my travels from different countries across the globe.  One thing I noticed, that is lacking in our country – is a mandatory life insurance. 

I ask a mentor/friend about this:  “How come in other countries, almost all people are insured and most of my OFW friends are required to purchase life insurance as a requirement while working abroad?”

He answered back to me, and his answer is very simple, straight and yet very true.  He said, “In other countries, a citizen cannot be liable to his own state.”  Meaning, if a citizen dies, there is money that could be used in his final expenses and even provide support to his loved ones he left behind.

In our country, it’s an entirely different story, according to statistics, only 4% of the population are insured or have some form of life insurance, including company given.  Furthermore, this also means, of all the 100 M populations that we have right now, only 4M have a certain amount of life insurance that their beneficiaries can claim should they die ahead of them.

In Private life insurance companies, for a life of a healthy 30-45-year-olds, the term insurance for a 1M Death Benefit with critical illness benefit, premium ranges at about 5,000 – 10,000 per year.

I know, not all of the citizen in the Philippines are capable of getting life insurance, but that should not deter our government to provide.  My point is, since the government is already giving subsidy to all those who can’t afford like in PhilHealth (that is about 2,600/year), why not make another program or government body who can subsidize the life insurance of the poor, let’s say 2,500-4,000/year for a 500K life insurance with critical illness benefit and also require those who can afford to have one (purchased on their own). 

These may be the benefits to our country:

• Decrease the number of people who goes in lines in Mayor’s office or any government offices, to ask help for funeral or critical illness of a relative. This maybe can reduce corruption in the government.  Some government official reasons out that they need money to give to the people who ask for help.  They cannot use this reason any longer.

• Replace the income of the breadwinner in case of death, and help the family to rebuild their lives again. The family left behind will be provided options and they may not to resort to criminal activities to get by.

• The dependents kids will not need to stop their education because their parents died. They can continue to study and finish their school and to be a contributor of the country’s economy instead of further becoming a liability.

• The widow does not need to go far to work if the husband dies. She can continue on caring for their children so that they will continue to be good citizens.

• If enough money may be left, the family can even use it to start a business and become a success story.

Those are the things I can think of, maybe some of you can share more benefits it can give.  Do share your thoughts in the comments below.

But even if there are so many benefits,

“Only 4% are insured, although there is a 100% possibility of dying.”

After registering our car, we paid approximately 4,000 pesos, with nothing but a receipt saying, “No sticker available.” I had another realization, with all the cars driving around our country and they are mandated to be registered yearly, and pay from 4,000 – 15,000/year (depending on the type of car).   Why do they and how can they pay that?  Because it is mandatory, or required.  The government would not even subsidize those who can’t afford, yet millions of cars get registered.  I think it’s all about changing the entire system.  Changing the mindset of most Filipinos that there is always a dole out.

The life insurance industry evolved from a simple story.  “The Passing of the Hat.”  It is when, if someone dies, the community, relative, and friends passes a hat, where they put in monetary gifts to give to the family that were left behind.  It’s from that simple concept.

For now, that there is no law or mandate to get life insurance, let’s mandate ourselves.  If you don’t want to be responsible citizen, at least be a responsible person to your loved ones.

I invite each Filipino, to get your own life insurance.  Having your own life insurance is in itself being patriotic. You are not only making sure your family has food to eat and roof over their heads, you are also making sure you are not liability to your country.

Be a fellow patriot,

Want to be an Asset than a Liability?  Contact me here.

Read more:

• 5 Insider Tips on Finding the Right Insurance Agent For You
• How much Life Insurance Do you Exactly Need?  How to compute?
• 12 Terms you need to know before buying a LIFE INSURANCE
• TERM INSURANCE, the Cheapest Life Insurance Ever!
• Top 10 Life Insurance Companies in the Philippines: Most Updated and Unbiased Review

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Pinky De Leon-Intal, MD, RFC

Doc Pinky is a licensed Medical Physician, Internationally Registered Financial Consultant, Certified Investment Solicitor and Associate Wealth Planner and Estate Planner of the Philippines. She loves to educate and spread financial literacy. She is a Lactation Consultant. She loves to travel. She is a devoted wife and mother.

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