Don’t Have Insurance Yet? Stop Believing These Insurance Myths

Rouselle Isla

Rouselle Isla

Last updated April 18, 2024

Based on figures collated by the Insurance Commission as of the first quarter of 2023, insurance density, which refers to the average spending of each individual on insurance, remains very low. Per Insurance Commissioner Reynaldo Regalado, insurance density stood at ₱872.56 per Filipino.[1] 

Insurance helps offset costs for expenses such as medical bills. Thus, one can’t help but question why many Filipinos don’t have insurance. 

10 Reasons Filipinos Don’t Have Insurance

Here are the most common reasons Filipinos don’t get a life insurance policy.

❌ Myth 1: “I don’t have enough money.”

don’t have insurance - i don't have enough money

It’s a common statement financial advisors and insurance agents hear from potential clients. It may sound like an excuse, but it’s also very real. 

The latest data from the Philippine Statistics Authority (PSA) shows that the country's poverty rate is 22.4% in the first half of 2023, equivalent to 25.24 million Filipinos whose per capita income is insufficient to meet basic food and non-food needs,[2] let alone life insurance. 

On the other hand, those who have more money to spare may prioritize other necessities, such as their kids' education or home mortgages.

In both cases, not having enough money is one of the main reasons many Pinoys have no insurance coverage.

Fact: Life insurance isn't exclusive to the wealthy. 

If you're a breadwinner or a parent with financially dependent children, you need life insurance.

Fortunately, you can tailor life insurance to your needs and budget. For instance, low-income individuals can opt for affordable microinsurance plans.  

❌ Myth 2: “Bahala na, makakaraos din 'yan.

Many Filipinos tend to leave everything to fate—or faith. Even with enough time and resources to prepare for a rainy day, many just hope and pray for guidance should the unexpected happen. 

However, this blind optimism also keeps many Filipinos from getting insured. 

Fact: Don't leave your family’s future to chance. 

You might not think of it right now because you still earn a living and remain in good health. But what happens if you suddenly lose your job, get critically ill—or worse, meet an unexpected end? What happens to your loved ones? 

If you get insured now, you’re financially prepared for anything that life may throw at you, such as job loss, accidents, critical illness, disability, or death. 

❌ Myth 3: “I still have a lot of time.”

When you keep delaying plans to get insured, you take time for granted. But who knows how long we’ll all be in this world? The demise of a loved one, a car accident, or a family member’s hospitalization always happens when you least expect it. 

When it does, you’ll be caught off guard and financially vulnerable.

Fact: The sooner you get insured, the sooner you can protect yourself and your loved ones from life’s uncertainties.

If you want to be a responsible adult, don't make procrastination a personality trait— it will affect your goals of financial freedom. The longer you put off availing of a life insurance policy, the more financially vulnerable you are to unexpected and costly events.

If you want an insurance plan you can personalize for whatever life phase you’re in, check out FWD's The One for Life. This plan offers flexible coverage and provides death, accidental death, and critical illness benefits. 

With its simple online application process, you can get insured in minutes and not have to undergo medical exams. Click to apply via Moneymax: 


Related: Moneymax and FWD Life Insurance Empower Filipinos to Make Better Financial Decisions

❌ Myth 4: “I don’t understand it.”

don’t have insurance - i don't understand it

As with other things, people fear concepts they don’t understand. Some Filipinos who want to get insured nonetheless find the whole idea of insurance difficult to understand. 

It also doesn’t help that not all financial advisors and insurance agents can explain hard-to-understand concepts. Some still use insurance jargon and don’t bother explaining how life insurance works.

Fact: You can learn about insurance using free resources online.  

Insurance is not taught in schools. Fortunately, there’s a treasure trove of articles, guides, and videos online that will teach you life insurance basics and more. You don’t even have to pay to access this information. 

Use these tools to familiarize yourself with insurance terminologies. Discover different types of insurance and their benefits, coverage, exclusions, and more.  

❌ Myth 5: “It’s a scam.”

Scammers are everywhere, even in the insurance industry, so it’s normal for people to think twice. Some Filipinos don’t even bother reaching out to legitimate advisors and agents because they already have the preconception that the industry is a sham. 

Such a belief probably stemmed from cautionary tales of friends and relatives who were victimized by fraudsters.

Fact: The insurance industry in the Philippines is regulated by the Insurance Commission. 

Only licensed agents and advisors can sell insurance and investment products. Moreover, you should transact only with advisors and agents from credible and accredited insurance companies.[3] Ask these professionals to show their license and validate it before handing over your hard-earned money.

❌ Myth 6: “There’s a lot of work involved!”

It’s human nature to seek rewards that require little to no work. Getting insured usually means reading through volumes of documents, undergoing a series of medical check-ups, and the like. You may back out or delay your plans when you realize the amount of work involved.

Fact: You can get insured in minutes using your mobile device. 

Getting insured a few years ago involved a lot of steps, but it’s a lot different these days. Most insurance companies launch mobile insurance apps to help clients access and manage their insurance policies 24/7. 

Use these apps to get information and find the best life insurance for your needs and budget. You can do all these without speaking to a financial advisor!

❌ Myth 7: “It’s an expense, not an investment.”

don’t have insurance - it's an expense, not an investment

Some people forego getting insurance because they think it’s only an out-of-pocket expense and not an investment. After all, you pay your insurance company money so that your loved ones get the benefits in case something happens to you. 

Fact: Certain life insurance policies can help you reach your financial goals.  

The industry has significantly evolved, now offering features to help you save money today to use in the future. Many life insurance policies put a portion of the premiums into a cash value, which can grow over time. You can then withdraw these when needed. 

In short, you can use your life insurance policy to achieve financial stability. 

If you’re looking for options, FWD’s Set for Life Investment-Linked Insurance offers a balance of protection and investment until you reach the age of 100. Aside from investment, lifetime protection, and accidental death coverage, you also get a loyalty bonus on your policy's 10th year and every five years after that. If you get diagnosed with a major critical illness or permanent disability, your future premium payments will also be waived. 


Read more: What is the Best VUL in the Philippines and How Does It Work?

❌ Myth 8: “I’m still healthy.”

Consider this scenario: You eat a balanced diet, exercise regularly, and maintain low cholesterol levels. You invest in stocks, mutual fund shares, and bonds. But you don’t have an insurance policy. 

What happens if you don’t have health insurance and get diagnosed with a serious illness or figure in a devastating accident? Your medical bills will drain all your savings and, eventually, your investments. In this case, health insurance coverage should be your first line of defense.

Fact: The best time to get insured is while you’re healthy, strong, and financially capable. 

It’ll be difficult—even impossible—to get a good policy if you develop certain diseases or experience a physically traumatic injury that gravely affects your livelihood. If you don’t plan to get insurance because you’re healthy, think about your family. Get insured now to secure their future. 

FWD's Set for Health Critical Illness Insurance puts such fears to rest. This insurance plan provides a critical illness benefit that’s 100% of the benefit amount if you get diagnosed with any of the 42 specified major critical illnesses. Claim up to 3x for unrelated major critical illnesses and receive an extra 20% coverage for minor critical illnesses. 

FWD also rewards you for staying healthy because you get 100% of your paid premiums if you don’t make a major critical illness claim by age 75. 


Read more: Personal Accident Insurance: What is It and Where to Get One?

❌ Myth 9: “It’ll just invite more risks.”

Filipinos are a superstitious bunch. Many aspects of Filipinos’ lives are often influenced by time-honored beliefs and traditions that don’t affect the real world. Unfortunately, this affinity for superstitions has permeated financial decisions. 

Some people believe that talking about risks invites them to happen. For instance, getting car insurance may invite car accidents, health insurance may invite sickness, and property insurance may invite fire and disasters.

Fact: You don’t need superstitions to know that life is unpredictable. 

Even the strongest, healthiest, and most cautious people get critically ill, meet an accident, or pass away unexpectedly. You can believe in the power of living cautiously (i.e., eating healthy and driving safely) to avoid these unfortunate events—or you can get insured now to provide more concrete financial security for yourself and your loved ones. 

❌ Myth 10: “I already have employee and government-mandated benefits.”

You have your Pag-IBIG, SSS, and PhilHealth benefits to count on when you need them. This is why you keep your monthly contributions updated, no matter how costly. 

Fact: These benefits can only offer so much. 

It’s better to consider these benefits as a separate segment of your financial plan. 

Although you can use PhilHealth during emergency hospitalization, it has limited coverage and benefits. Meanwhile, your SSS should be saved for retirement. Pag-IBIG should be dedicated to your real estate-related plans. 

Life insurance coverage may be part of your employer’s compensation package, but the benefits are usually insignificant. Also, some insurance packages companies offer are on a co-terminus basis. This means the insurance policy will not move with you when you resign.

Do you plan to get married, have kids, start a small business, or support a family member’s college education? All these life changes require modifications in your insurance plan, which you can only do when you get your own policy.

Read more: Should You Get Life Insurance? Consider These 8 Factors

Why You Should Not Avoid Insurance

don’t have insurance - why you should not avoid insurance

Getting insured may mean additional costs for you, but that's far less than what you'll be spending when the unforeseen happens. Here are some of the most significant benefits of protecting yourself and your family with an insurance policy:

✅ Less Stress, Less Expenses

When any unfortunate event happens, you won’t have to worry about where to get money with an insurance policy. You can file a claim with your insurance provider so you won't have to shoulder all the medical costs.

Enjoy lower stress levels with an insurance policy!

✅ Convenient Claims Process

A misconception is that making an insurance claim is a painfully slow and lengthy process. However, it's a lot easier than you’d expect. 

Insurance providers assist their clients in the claims process. They walk clients through the requirements and steps in filing a claim. Once you've submitted all the necessary documents, you just have to wait for your insurer's approval of your claim.

Read more: Do You Really Need Life Insurance? Yes—Here's Why

Final Thoughts

If you don’t have insurance, you have much to lose. Getting insured allows you to secure yourself and your family from losing more money than necessary when the unexpected happens. 

It’s just a matter of comparing and finding the right insurance provider to best cater to your needs. Compare FWD’s life insurance plans today for free via Moneymax: 

Compare FWD Life Insurance via Moneymax

DISCLAIMER: This article was created in partnership with FWD Philippines. While we are financially compensated for this collaboration, we ensure to maintain our editorial integrity to provide you with the best recommendations that can help you make smarter financial decisions.


Rouselle has over eight years of writing experience in the personal finance niche. She has written feature stories, articles, and how-to guides on various personal finance and trending lifestyle topics. Before that, she briefly worked in banking and was a licensed life insurance advisor. When not writing, Rouselle likes to read books and binge-watch films and series. Follow Rouselle on Linkedin.


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