Why Life Insurance Matters More Than Ever for Filipinos

Photo by Migs Reyes: https://www.pexels.com/photo/a-happy-family-smiling-4689239/

Life insurance isn’t just a policy — it’s peace of mind. For many Filipinos, it’s one of the smartest and most practical ways to ensure long-term financial security. As the cost of living continues to rise and uncertainties become more real (especially after the pandemic), more and more Filipinos are realizing the importance of securing their family’s future.

I didn’t fully understand the value of life insurance until I turned 26. A friend — now a licensed financial advisor — sat me down and explained what it really meant. It wasn’t just about death benefits; it was about protecting the people you love from financial hardship.

Why More Filipinos Are Turning to Life Insurance

One of the strongest reasons Filipinos consider life insurance is our deep-rooted cultural value of family. In the Philippines, family isn’t just important — it’s everything. We support each other in sickness, in crisis, and even in our dreams. And that includes making sure our loved ones are financially secure, even if we’re no longer around.

This mindset started shifting more visibly around the early 2000s when insurance agents began transforming into full-fledged financial advisors. Their mission wasn’t just to sell products, but to educate Filipinos about financial planning, protection, and wealth-building.

Protection When It Matters Most

Life insurance provides a critical safety net for families in the event of an untimely loss of a breadwinner. It ensures that even during life’s toughest moments, your family can continue to pay bills, cover education expenses, and maintain a decent quality of life.

And it's not just about protection — many life insurance plans in the Philippines now come with investment or savings components, giving policyholders the ability to build wealth over time. This is especially important for those planning for retirement or aiming for financial independence.

Why Life Insurance Makes Financial Sense

Here are a few reasons why life insurance is a smart financial move for Filipinos today:

✅ Affordable premiums – Plans are now more budget-friendly and can be tailored based on your income.

✅ Customizable coverage – Choose what works for your unique situation and family size.

✅ Tax benefits – Life insurance payouts are generally exempt from income tax in the Philippines.

✅ Wealth building – Some policies let your money grow through dividends or market-linked investments.

But Here’s the Reality Check

Despite its importance, only 16.8% of Filipinos have life insurance coverage, according to a survey by the Insurance Commission. That means more than 90 million Filipinos are still financially unprotected.

Why? The top reasons are:

Lack of awareness and financial education

Misconceptions (e.g., "insurance is only for the rich")

Belief that it’s complicated or unaffordable

The pandemic served as a wake-up call for many. Suddenly, life’s unpredictability became very real. And with it, came a renewed interest in life insurance and financial preparedness.

The Industry Is Catching Up — Are You?

The good news is that the life insurance industry in the Philippines is growing steadily — with a 6% annual growth rate. Companies are investing heavily in educating the public through webinars, social media, and free consultations.

Government initiatives are also helping. For instance, there are plans to include microinsurance in the country’s social protection programs, making it more accessible to low-income families.

✅ Your Next Step: Secure Your Future Today

You don’t need to be rich to get life insurance. You just need the willingness to plan ahead.

📞 Talk to a trusted financial advisor.

📊 Assess your current financial situation.

📄 Choose a plan that fits your needs and goals.

Start now. The best time to protect your family's future was yesterday — the next best time is today.

🔗 Want to know the top life insurance companies in the Philippines for 2023? Click here to see the list

💬 Let’s Keep the Conversation Going

Have questions about life insurance or other financial tools?

Follow this blog for practical, no-fluff advice on money, savings, and financial freedom — designed specifically for Filipinos.

About the author 

Jack Marbida is a husband to his wife Wene and a father of 2 little boys Isaac and Israel, he is a financial advisor, speaker, and writer who helps families be financially stable and grow their relationships. He works with families to help them reach their goals by teaching them about financial literacy and helping them develop a healthy relationship with money.

He has been featured in Sun Life Financials and others for his work as a financial coach. He is also the founder of Online Advisors Financial Education, which provides free educational content through blogs and videos.

Jack speaks at conferences across the Philippines on topics such as family finances, and personal and professional growth.  

You can contact Jack Marbida through his social media accounts or email him at papajackph@gmail.com or jacky.n.marbida@sunlife.com.ph.

Cheers!