The Philippine Life Insurance Association, Inc. reports that as September 2020 came to an end, fewer Filipinos were protected by microinsurance, a considerably more cost-effective coverage alternative. Sales decreased from PHP 6.58 billion in 2019 by 33.23%.

The epidemic could be to blame for the decline. However, it also demonstrates that some people may still be opposed to purchasing insurance even if they have the means to do so. Some people won’t get a policy, such as life insurance or mandatory third-party liability auto insurance, unless they absolutely need to.

Everyone benefits from insurance since it lowers the cost of many items, including school fees and medical expenses. However, it begs the question of why so many Filipinos choose to forgo insurance.


Top Reasons Filipinos Avoid Insurance

Here are the most frequent excuses given by people for why they still choose not to purchase insurance, be it for their cars, lives, or property.


There is still a lot of time

Your goals to achieve financial freedom may also be impacted by your childhood “Mañana” habits. Delaying your contract signing, postponing your meeting with an insurance agent, and other insurance avoidance strategies could wind up causing you (and possibly your family) unanticipated burdens. In reality, these issues can be avoided in the first place.

You are effectively taking time for granted if you keep putting off getting insurance. You keep telling yourself that you have a lot of time left, but it is just a lie! Always at the worst possible time, a loved one passes away, a vehicle accident occurs, or a family member needs to be hospitalized. You’ll be taken off guard and financially exposed when it happens.


Don’t have enough money

This is a common assertion that potential clients make to financial advisors and insurance agents. It might sound like a justification, but it might actually be one. Many Filipinos are still living in poverty, and they struggle to provide for their families. Even though there are numerous microinsurance choices, not everyone can afford them. They also need to take care of other crucial survival needs, such as getting food and medicine.

On the other hand, those who are wealthy might understand the value of insurance. However, they must cope with other pressing financial matters, including paying for their children’s education, their parents’ health, or their mortgage.

Many Filipinos forgo insurance by using the justification that they don’t have enough money in both situations.


I don’t understand it

Some Filipinos may genuinely have insurance plans. But the issue is that understanding insurance as a whole is fairly challenging. People are terrified of things they don’t understand, just like they are of other things.

Actually, it is the financial advisor who has the burden. We have to accept the likelihood that not all salespeople and financial consultants are skilled at breaking down complex ideas. Some continue to use intimidatingly large terms, while others don’t try to explain the specifics of an insurance product or assist the client in selecting the most appropriate coverage.

And when a potential customer is confused, they decide against purchasing an insurance.


Bahala na!

Filipinos tend to be pessimistic. We rely only on fate when things are difficult. We murmur “Bahala na! ” even though we have the time and resources to plan ahead for a rainy day. for us. This particular sentence serves as our reason for overspending or leading extravagant lives nowadays.

In a sense, saying “Bahala na” sounds optimistic because you’re hoping that something good might happen. However, it is this same mentality that prevents many Filipinos from obtaining insurance. They think they will never experience an accident or other unfortunate circumstance. They hold that the current moment is far more significant than anything else.

Your future will be protected if you get insurance now. After all, the choices you make now will have an impact on your future.


There is a ton of work to be done!

Humans naturally look for benefits that require little to no effort. None more so than Filipinos. It may be necessary to wade through reams of paperwork, meet with the advisor several times prior to signing the contract, endure a series of medical exams, assess one’s finances, and other such things in order to obtain insurance.

When a potential customer learns how much work is necessary, they can decide not to purchase insurance or even postpone doing so.

It is true that obtaining insurance takes some effort. But hey, the rewards much outweigh the effort you put in by a thousand to one. Remember this overused but dependable maxim: “No pain, no gain.”


It’s a scam

It is only natural for individuals to hesitate before purchasing insurance because scammers may be found anywhere, including in the insurance industry. However, because they already believe that the sector is a fraud, several Filipinos don’t even bother contacting reputable advisors and agents to ask pertinent questions. Agents for insurance are just avoided. Such conviction most likely resulted from hearing the cautionary tales of friends and family members who were scammed.

If you’re unsure, know that the Insurance Commission of the Philippines oversees the country’s insurance market. Keep in mind that the sale of financial and insurance goods is only permitted by licensed agents and advisors.

It is usually advised to deal exclusively with consultants and agents from reputable and accredited insurance firms. You can always request that these individuals show you their license so you can verify it.


Lack of Understanding

You consume a healthy diet. You work out frequently. Your cholesterol levels are low. You are admired by everyone for living a healthy and clean lifestyle. All these positive behaviors do not, however, grant you invincibility. Even the healthiest and strongest individuals are susceptible to terrible illnesses and accidents.

The optimum time to purchase insurance is right now, when you are financially stable, physically fit, and in good health. If you have a physical trauma that has seriously affected your ability to earn a living or if you are starting to develop certain diseases, it will be difficult or even impossible for you to obtain suitable insurance.

If you choose not to purchase insurance because you are in good health, consider your family. Get covered by insurance if you want to ensure the future of your family.


It will just increase the risks

The majority of Filipinos are superstitious. Traditional beliefs and practices that have little real impact on the outside world frequently influence many elements of our lives.

Additionally, Filipinos’ propensity for superstition has influenced their financial choices. Some individuals think that discussing dangers actually invites them to occur. For instance, purchasing auto insurance may encourage collisions. Purchasing health insurance can make you sick. Moreover, purchasing property insurance may make disasters and fires more likely.

As a result, some Filipinos come to believe that the best way to prevent unforeseen events is to simply live cautiously (i.e., eat healthily and drive safely). But as was already noted, even the healthiest, fittest, and most vigilant individuals occasionally fall ill or have accidents.



It’s difficult to determine whether the shift in attitude toward insurance results from the majority of individuals in the country being of a younger generation or from the fact that more and more people understand that insurance exists to protect one’s hard-earned resources.

You stand to lose a lot if you choose not to purchase insurance. By becoming insured, you may protect yourself and your family from suffering unneeded financial losses in the event of an emergency. Finding an insurance company that can completely meet your demands is all that is required.

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