As we get older, our priorities and goals are switching, and our perception in life becomes deeper. When we start working and earning money, we create budgeting plan, set aside the basic necessities and our luxuries. Money becomes indispensable for people who consider their selves as breadwinners or the main sources of income in their families. As the generation revolves, the quality of living has an economic value as long as the purchasing power is able to compensate the growing needs of the humans. In economics, it is always necessary to discuss the demand and supply, and the resources versus the wants of mankind. You will notice that in studying economics, the demand and supply are set apart by a gap while the resources and wants are set apart by scarcity and unlimited. It is also the same as our ability to earn money and some determinants that will adversely affect our productivity. When an employee becomes sick, he would ask for sick leave so he could redeem his strength or in a serious illness, he would get hospitalized so he could be treated. And a worst case scenario, one life might be gone due to malignant illness or accident. In the Philippines, it is just a usual incident seeing on the news about killings and accidents. In the Philippines, many Filipinos are being admitted in the hospitals and some are unfortunate and simply die because of inaccessibility of medical services and assistance, lack of educational awareness about life insurance. According to the Philippine Information Agency, there are 92% of Filipinos covered by PhilHealth. And this is a common mistake that most Filipinos understood in terms of insurance. Government’s health insurance is a government responsibility that must be given as a result of a collective effort of tax contribution of Filipino taxpayers. Life insurance is totally different.

Life insurance is another form of a long-term individual investment. It is almost the same concept as educational plan; except for the purpose, it is being used. A life insurance is a contract, whereby a party agrees to pay another a certain sum of money (in the form of investment) in the event of the insured’s death from any cause not excepted in the contract or upon surviving a specified period of time or otherwise contingent on the continuance or cessation of life. Its main provision is to protect against financial loss, substitutes certainty for the uncertainty. The value of life insurance contains the solutions to the problem of protecting human life values against inevitable economic loss through death, disability and old age. In the Philippines, there are several life insurance companies who are solely operating as insurance companies, but there are other insurance companies which are affiliated with different local banks. The application can be done directly to the local banks or to the insurance agency. By investing in a life insurance, a policy owner is entitled to basic services of life insurance such as family protection during premature death, retirement income during old age and guaranteed savings during disability. Among the benefits that a policy owner is entitled are death benefits during premature death, maturity benefits during old age and cash values during disability.

With numerous changes the way Filipinos live, life insurance must be part of priority plan in the income distribution. Whether an overseas worker or a local employee, life insurance must be taught and to be spearheaded by the government so it will be more adaptive and more participative. Health insurance might be good to a certain extent, but it is always best to live with confidence and comfort knowing that a Filipino is secured at all times. Since the government is the central institution in executing projects, the government must serve an exchange platform in ideas and information through several seminars and training. In this way, it would be more accessible and citizen-friendly with the objective of harmonizing the conflicting views on matters of life insurance.

Educating the Filipinos is the best way to introduce the importance and the benefits of life insurance to the public. Getting and being insured is a right of all Filipinos. This will help to alleviate the disparity of level of rich and poor in the society. An insured citizen will build confidence to the development of the local community and will surely provide big impact to the sustainable development of the nation.


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