Tuesday, December 11, 2007

Is Insurance That Important ?

Have you realize what it means to lose someone? Or what if something happens to the primary income earner of the family? The member left behind not only grieved for such lost but also suffers the agony for the last expenses to bring someone to the final place of abode. It means that they will have to take care of the memorial services and other expense related to it, casket, memorial lot, estate taxes, and others. Moreover, after burial the suffering still continues due to income and opportunity loss, just imagine the replacement of income to maintain the family’s standard of living. More so, if the survive family left with unpaid (home, car, etc.) mortgage and other debts. In addition, the education of the children would have to be continued with corresponding expenses. Thus, reality bites, this eventful loss is basically bringing the family back to “square one” and dip further into poverty.

In the Philippines the insurance industry remains upbeat since Filipinos are mostly either under or not insured. This is so because it’s not affordable, the life insurance is just too expensive for the average income earner. According to Insurance Commission data, it is estimated that only twenty percent of the population in the country have Life Insurance unlike in the U.S in which about 82 percent have. Other European countries are more or less the same with US in terms of percentage to total population with insurance.

The birth of FICCO MBA is more of a response to this call by carefully considering its mandate for a total member care. If we compare our FICCO MBA products against those offered by commercial insurance provider, we can see a big difference in terms of premium and benefits since commercial providers premium ranges from P 200.00 to P 300.00 per month with corresponding benefits of P 30,000.00 for death and double it’s amount for accident, the FICCO MBA has offered a lower premium at P 21.00 / week, and monthly of P 90.00 you can be covered for P 40.000.00 on natural death and P 80,000.00 for accidental death. In addition, the premium you pay is inclusive of your dependents thus no need to pay for additional cost.

The FICCO MBA is offering a reasonable premium at an equitable coverage. If this rate is still a burden then maybe we can carefully examine our present expenditure patterns, and ask ourselves for example: How much am I spending to bet with lotto on a daily basis? Is this worth the risk? How much am I spending with texting and calling on my cellphone? Is it about 20 – 25 text a day? How much do I spend for cigarette? Is it 2 packs a day? How much do I spend for weekly movies? These questions and many more gives us more reason to ponder, there’s got to be a better use of that money

In summary, obtaining a Life insurance is considered more as necessity than wants. Most have not regarded it fully as such because it is not offered to the public at an affordable rates and FICCO seeing this to be necessarily offered to the general membership contemplates to launch FICCO MBA with a noble purpose of public service. We are not betting for luck this time but instead we are preparing because death is certain to come to all of us. It is reality and we can leave a legacy that we care for other family members by taking out certain burden to them.