In a 2018 article in Inquirer site, a research from Sun Life Financial Philippines Inc. shows that there are only 16% of middle to upper income Filipinos have insurance products. This is considered to be very low.
Most likely, more than 95% of those who bought insurance are considered as under-insured. These are those who get insurance but do not have the complete cover that they should get.
But why most Filipinos don’t buy insurance aside from having no budget for it?
We considered insurance less importance is perhaps mainly a disadvantage of having strong family ties. That’s one of our Filipino culture, strong family ties. We rely on each other if something happen to us. When too much reliance, it can be a disadvantage.
Why would you buy a medical insurance for yourself, when you can call your parents anytime for medical assistance?
Why would you prepare for retirement when you have your children to take care of you?
Why would you prepare for emergency fund when you have your brother/sister working abroad to help you in those times?
When you are on the receiving side, that’s an advantage for you. But how about the side of those giving to you? Even if they are your family, they also have their needs. Perhaps they have their own family to take care of. What if they don’t have the means to help us whenever needed?
Once or twice asking for help is OK. But when you do it very often, from the way I look at it, is not very nice at all. It will come to a point where the give might think it’s too much.
We have to learn to take care of ourselves. We have to prepare for our unforeseen events. We have to plan for our own future.