Insurance

Why people are buying insurance during the pandemic

THERE is no doubt that the ongoing pandemic has turned our world upside down. We found ourselves doing things we didn’t do before the pandemic, like wearing face masks or observing physical distancing or working and studying from home. We prioritize and deprioritize items on our checklist, moving non-essentials to essentials. What we used to take for granted now takes a prominent place in what matters to us. Just consider how the pandemic has changed the way many Filipinos think about life insurance, and you will better understand what I am saying.

Life insurance is one of the most neglected and low on the list of priorities for many Filipinos before the pandemic. Many prefer to spend their money on new gadgets, travel or dinner instead of spending it on life insurance premiums. Many thought they didn’t need life insurance because they were still young, healthy and earning money. They felt safe, provided and protected as they were. Then the pandemic happened with all the disruption it caused, and people realized and acted on the importance of having life insurance. As the pandemic brought uncertainty and left us all vulnerable to the invisible enemy, people began to worry and plan for their own future, but more importantly, that of their loved ones.

This interest was reflected in the growth of the industry in 2020 and even more so in 2021, during which most industries were just trying to stay afloat. The latest data showed premium income grew 64% in the third quarter of 2021 and industry insiders believe it’s more likely that double-digit growth will be sustained through to the end. from last year and continues into 2022. This is fueled by the growing public awareness and appreciation for life insurance.

Here are three reasons why people are seeing the importance of buying life insurance during this pandemic.

It protects your loved ones from the vagaries of life. As they say, you buy life insurance not because you have to die but because your loved ones have to live even when you are gone. Not just live but continue to live their lifestyle as if you had never left. The pandemic has already claimed thousands of lives. He did not discriminate…rich or poor, healthy or sick, young or old, male or female, employed or unemployed. Suddenly we all faced our vulnerability, our mortality. And during these moments, we ask ourselves these questions: What happens to my loved ones when I am no longer there? Who will provide them? Will they be able to keep the house and the car? Will my children be able to continue their studies? And so many other questions. These are the questions that life insurance is there to answer and provide. Life insurance kicks in when you can no longer support your survivors. It provides financial security when the source of income or the breadwinner is removed from the table. It provides funds for death-related expenses, your family’s day-to-day expenses, home and car mortgage payments, your children’s education, among others. Sadly, especially during this pandemic, we have seen relatives and friends not only mourn their loss, but have to worry, for a very long time, about how they will continue to live empty-handed. We have seen drastic changes in the lifestyle of surviving family members with the death of the breadwinner. If only they had life insurance… We certainly don’t want our loved ones to carry the burden when it comes time to leave. How do you prepare and ensure their future is secure and protected?

It includes living benefits that can protect your finances. This protracted pandemic is not only seen as a health crisis, but also as an economic crisis. People were taking pay cuts, losing jobs or closing businesses. Imagine the financial impact caused by a lower take home pay, or a sudden job/business loss or medical emergency. It certainly made a huge dent in our finances. Luckily for some, they have life insurance. Although the primary purpose of life insurance is protection, it has evolved into savings, health and investment products, which provide living benefits. This means that no one has to die to experience some of the product’s benefits. Those who suddenly found themselves in a financial dilemma had to rely on their life insurance products. It provides benefits so that your finances and other forms of savings don’t run out while you deal with unexpected expenses and other uncertainties. A friend of mine, who lost her job in 2020, was very grateful for buying insurance plans years ago and supporting her daughters’ education during the pandemic. This allowed her to send her three daughters to college while she was unemployed and without having to deplete her savings. On the other hand, I saw how another friend’s family savings were depleted when he fell seriously ill with Covid and had to be confined. He had no life or medical insurance. Thus, he had to pay all medical expenses using his savings. Fortunately, he recovered but had to rebuild his finances from scratch. Having living benefit insurance products will help ensure that your finances aren’t wiped out by a single hospitalization or sudden loss of income. Of course, we all want our finances to be protected no matter what crisis comes our way. How did you make sure your hard-earned money was safe and protected?

It offers peace of mind. Stressed, stretched, worried or overwhelmed; these are just a few of the words that can describe the mindset of most people these days. Although we cannot control the twists and turns of this pandemic, there are things we can do to manage its impact on us. Having life insurance can make us calmer and more at peace with the risks and uncertainties around us. We can sleep soundly at night knowing we are covered for medical emergencies and other unforeseen events. Although insurance does not answer all our worries and fears, it can certainly lighten what could be a heavy and heavy load on our shoulders. You can focus on getting well and recovering, instead of worrying about paying your hospital bills. You can focus on supporting your children in their studies instead of worrying about their tuition fees. You can properly mourn the loss of a loved one instead of wondering how to survive the next few days. Life insurance will allow us to focus more on the things that really matter. A financial adviser shared that at the height of Covid infections and deaths, a client called her to check her insurance and take out additional cover. When asked the reason for the extra coverage, the client calmly replied, “I need to have peace of mind that my family is safe and protected if Covid ever catches me.” In a way, life insurance allows us to “buy” our peace of mind. What are you doing to get that peace of mind you deserve?

We don’t know what awaits us all. This pandemic has shown us that anything, even the most unimaginable, can happen to all of us in an instant. That one day we may wake up in a world very different from what we knew. During these times, it helps to know that we don’t have to carry the financial burden alone and that we have something we can rely on with certainty. There is no financial product on the market, other than life insurance, that can offer these advantages. As my friend, agency manager Nina Anover, said in a recent interview, “It always amazes me that for a small premium we pay, there is a product where different forces come together to meet our needs. and those in our family, when we need financial help the most.Only life insurance can do that.