Most people are frightened when someone asks them about insurance. They usually feel that way because they are too scared of the money they will use to get one, as we know how costly purchasing one is.
On the other hand, they mistakenly thought of it as an added expense and didn’t need it. Still, the truth is, insurance is essential in every way at it gives us protection for our properties, our health, our finances, and most especially, our lives.
What are Different Types of Insurance Policies in The Philippines
Getting the right insurance policy can probably give you living in peace and harmony. If the unimaginable happens, you will not leave your loved ones behind, knowing they are taken care of by this insurance policy.
This content will explain the different types of insurance policies in the Philippines.
Here is the list of the different insurance policies in the Philippines.
1. Life Insurance
A life insurance policy can is an agreement between a person and an insurance company, where the insurer commits to paying a sum of money in exchange for a premium. Most people see it as a policy you buy that pays money to your loved ones in times of your demise. Life insurance policy may vary, and insurance policyholders offer different types depending on what you need and want.
There are two available types of life insurance policies. First, we have term life insurance. This type usually provides coverage only on a specified period, between 10, 15, 20, and 30 years. The term life insurance guarantees the death benefit that the company promised to give to your beneficiaries, and it is always in an income tax-free lump sum of cash. It is typically more affordable and straightforward than the second type of life insurance, permanent life insurance. However, this type of policy has no cash value component, which that means once the term is over, your family will not receive any value or payout.
Contrary to term life insurance policy is permanent life insurance. This type of insurance gives coverage that lasts your whole life. And unlike the first one, this type has a cash value component that provides financial benefits to your family.
2. Health Insurance
The most commonly used health insurance in the Philippines run by the government is the Philippine Health Corporation or PhilHealth. If you are working, you probably have this health insurance which your employer may have fully or partially paid.
Health insurance is one of the most important things we need, especially since we are experiencing a global health crisis because of Coronavirus disease. This type of insurance policy can also cover some of your family’s medical expenses if they get hospitalized. It is must-have insurance for everyone.
3. Property Insurance
Unthinkable incidents like theft, fire, and floods can cause you severe financial dilemmas. Thankfully, property insurance policies do exist to give you protection to your property. It reimburses the property owner or renter for loss or damage from a covered “peril” or cause of a loss.
The coverage of this property insurance is the property’s structure and contents, which includes furniture, appliances, and other personal things. Business owners must consider getting this kind of insurance policy to protect their premises.
4. Education Insurance
The price of education in the Philippines is not getting cheaper, specifically at a higher level. Though every parent wants to send their children to an exclusive and prestigious school and dream to fulfill their goals in life, some do not afford the cost of paying higher tuition and miscellaneous fees. But options are hanging around for sure, and one of these is to take an education insurance plan for your child. Saving for your child’s brighter future is the best gift you can give them.
5. Travel Insurance
Fond of traveling? Well, you must have something to protect you if you get into an unwanted situation. Travel insurance provides you with financial protection for unforeseen events while traveling. This insurance’s benefits and coverage include medical emergencies, canceled trips, delayed travels, and lost baggage. Moreover, according to your need, there are three types of travel insurance: single trip, group, and annual.
*Single Trip Travel Insurance gives you coverage for one single trip. This starts the time you leave your home and ends when you return. You can consider getting this type of travel insurance if you are a traveler concerned about having to cancel your trip. Just make sure to include trip cancellation coverage, which is the most common type of travel insurance purchased by many travelers.
*Group Travel Insurance policy can cover up to ten travelers. It usually provides benefits the same as the single trip insurance policy, including medical emergencies, travel delays, lost baggage, and even trip cancellations. It is way more convenient and less expensive for people traveling together because it allows them to purchase one policy for their trip.
*Annual Travel Insurance policy covers you if you take multiple short trips annually. However, this policy limits the number of trips taken throughout the year and how long one can last. Depending on the procedure, the trip length should be at a maximum range of thirty to three hundred sixty-five days. This type of travel insurance offers medical coverage, and unlike single trips, it typically does not include Trip Cancellation coverage.
6. Auto Insurance
Auto insurance is an arrangement between you and the insurance company in exchange for committing to pay the premium that gives you and your vehicle protection from possible theft, vandalizing, and accident. The company also agrees to pay for your losses as written in your chosen policy by this insurance plan.
Driving around your car and knowing you are protected financially, whatever happens, will give you extreme peace of mind. So better be safe than sorry, and have insurance ready if something you do not want happens.
We cannot deny that getting insured in any type gives us the feeling of being secured and protected. That is why these insurances are all existing and available in the market.
We should always tell ourselves and bear in mind that these are not other added expenses; otherwise, we should think of them as more of an asset than a liability. There are many uncertainties in life that could pop up any time of the day in any place, and the best thing we can do is give ourselves some relief.