Declining Importance of Life Insurance
A recent market survey has revealed a concerning trend in the Philippines, indicating that only 50 percent of breadwinners in major urban areas consider life insurance an important financial tool. The survey, conducted in the National Capital Region, Cebu, and Davao City, shows a significant decrease in the perceived urgency of obtaining life insurance in the post-pandemic era.
In 2022, 83 percent of respondents in these key urban areas acknowledged the importance of having financial protection. However, by 2024, this figure had dropped considerably to 54 percent, suggesting a potential shift in priorities or risk perception among breadwinners. The primary reason cited for not prioritizing life insurance was budget constraints, with many individuals focusing on immediate financial obligations and pressing bills over the perceived long-term security offered by life insurance policies.
Despite this trend, the survey revealed a general agreement across various demographics that life insurance could provide crucial financial support for families facing unforeseen health issues, death, accidents, or disability. BDO Life is emphasizing the essential role of life insurance as a crucial ‘Plan B’ for families, stressing that owning a life insurance policy is a responsible and selfless act that prioritizes the financial well-being of loved ones and dependents.
To enhance accessibility, BDO Life has established a presence in BDO branches nationwide, recognizing that many individuals prefer to consult with insurance specialists before deciding on their financial protection. The company’s financial advisors provide tailored advice and build lasting relationships with clients, guiding them toward the most suitable insurance solutions. Renato Vergel De Dios, president and CEO of BDO Life, stressed the fundamental obligation to protect loved ones, stating, “You owe your loved ones a Plan B that will allow them to move on in life when you’ve ceased to be in the picture. That takes tremendous financial maturity and responsibility to recognize that life insurance isn’t an optional choice. It’s the financially smart thing to do.”
