4 insurance myths debunked

Living through the past couple of years in a pandemic has made more people realize the value of insuring themselves and their essentials, especially the importance of being prepared for unforeseen circumstances. However, many remain unaware and uninformed about its perks and advantages.

There are still doubts and questions like “How much should I spend or invest on insurance?”, “When is the best time to get one?”, “How can I be assured that my beneficiary will receive the fruits of my investment?”, and “How can I maximize my insurance?” We’ll dive into these and break down some of the common misconceptions surrounding the topic.

MAPFRE, an insurance company with a global footprint and over 80 years of expertise in the industry, addresses common concerns of Filipinos when it comes to insurance through ease of access, seamless services, and convenient processes.

1. Insurance is expensive, hurts the budget

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With inflation on the rise, the value of Philippine peso reaching a historic low, and shortages left and right, one might think that insurance is not a necessity. It’s not surprising that many Filipinos choose to dismiss the idea of getting insurance; but if you factor in the protection it gives and the peace of mind that comes with it, insurance boils down to be quite affordable.

Imagine the headache and the pile of bills that you would get from, let’s say (knock on wood) a car accident. With MAPFRE’s Car Insurance, expenses like repairs, towing, liability, and to a certain extent, even accidents are all covered.

2. Insurance is only for the sick and elderly

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While some still view insurance as only for the sick and elderly, insurance providers in the Philippines have come a long way to make the public realize that getting insured is actually better when done as soon as possible. Take for example life insurance, it’s cheaper and more beneficial to get one while the policyholder is younger, as it will lock in the cost of the premium throughout the duration of the policy.

There is also a greater chance for the insurance plan to get approved since the youth are generally healthy and less likely to develop health problems anytime soon. On the other hand, an elderly policyholder would likely require a higher premium to shoulder the risks on the part of the insurance provider due to possibly existing and other potential health concerns.

For those in the middle however, like the working class, one type of insurance that may be suitable since it has an age limit is MAPFRE’s Personal Accident Insurance. It covers people up to a certain age for accidental death and disability, unprovoked murder and assault, medical reimbursement and hospitalization allowance, as well as burial expenses.

3. Insurance benefits can only be claimed upon death

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One of the most common misconceptions about getting insurance is that people tend to assume that it’s only advantageous when they’re already planning a burial, or when someone is on their deathbed. These things may be grim to talk about but it’s actually practical to discuss such topics with your loved ones.

It would also be good to bring up that there are different types of insurance that can cover different aspects like properties, vehicles, accidents, and even travels. These fall under non-life insurance, with benefits that can be claimed when certain conditions are met, which do not necessarily always equate to the policyholder’s passing.

Speaking of properties, you can secure your house and its contents with MAPFRE’s Home Insurance. It has benefits for different types of damage from all acts of nature like earthquake, floods, and fire, as well as covers removal of debris, temporary accommodations, and even home assistance.

4. Insurance is a waste of money

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While we have already established the point that insurance is equivalent to paying the price for peace of mind, not all Filipinos are able or willing to pay the premium. That’s where innovative policies come in. An example is when COVID-19 struck. At its peak, there were companies offering hospital benefits if the policyholder contracts the disease for a minimal amount but within a certain period only. There’s also the modest add-on some bus companies offer their passengers for travel insurance that only covers the trip they’re about to get on. These are convenient insurance policies that cost a paltry amount for peace of mind, albeit for a limited time.

But for those looking to be worry-free for an extended travel period, look no further than MAPFRE for its comprehensive and extensive Travel Insurance that has your basic coverage and extra perks for inconveniences like lost or delayed baggage and even delayed flights.

These are just some of the options for peace of mind for yourself, your family, your home, as well as your travels. MAPFRE Insurance also offers protection for your business, and overseas Filipino workers or OFWs. Head on over to MAPFRE’s website campaign.mapfreinsular.com for more details. Like and follow MAPFRE Philippines on Facebook and Instagram for the latest updates.

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Chris Layugan