Here is why a Life Insurance is a Must to Bounce Back from Life’s Bitter Pill

Here is why a Life Insurance is a Must to Bounce Back from Life’s Bitter Pill

We are currently experiencing numerous worldwide crises, which makes our world extremely unstable. Insurance has become more essential than at any other point in this century for safeguarding everything that is important. Consequently, it is fantastic news that AXA Philippines has finally finalized a merger with its former general insurance subsidiary (Charter Ping An), enabling the global leader to offer both life and non-life insurance products under a single well-known global brand, making essential life insurance protection more easily accessible than ever to more Filipinos.

Fortunately, Filipinos’ attitudes toward insurance have improved a little. Filipinos are already much more aware of the value of making insurance investments to protect their future. Aside from the issue of rapid inflation, life in general and life in the Philippines, in particular, are full of uncertainty, therefore this had to happen sooner rather than later.

We are statistically the most natural disaster-prone nation in the world, with an average of 20 typhoons per year, five of which, according to the Asian Disaster Reduction Center, do substantial damage. Additionally, pre-pandemic city traffic is nearly totally back, and car accidents are also on the upswing.

Insurance penetration in the Philippines reached an astounding 2.3% of the country’s GDP as early as September 2021, while COVID-19 was still an issue for much of the world. According to the Philippine Life Insurance Association, Filipinos spent an additional 26% on insurance on average. However, this has not even come close to bringing us up to speed with most of the rest of the globe.

“The rapid digitalization of many insurance services that the recent pandemic made necessary has helped the industry grow, but too many Filipinos are still one crisis away from poverty,” said Nandy Villar, Chief Marketing Officer of AXA Philippines.

The website BIS.org puts the global insurance penetration average at 6.1% in 2017, with the Asian Average at 5.6%, and the ASEAN average at a very low 3.6%. Even with penetration in the Philippines at an all-time high, we are clearly highly underinsured as a nation. The Insurance Commission (IC) cites a lack of financial literacy as the main culprit.

In a recent forum, Deputy Commissioner Ferdinand George “Bong” Florendo of the Insurance Commission cited a September 2022 Worldbank report which indicated that only 25% of Filipinos are financially literate, compared to 36% in Malaysia and 59% in Singapore.

“At AXA we take pride in our role not just as insurers, but also as financial advisors. Because there are so many things in life that need to be protected, many find investing in insurance daunting. That is why we have a pool of trained and qualified financial advisors to help customers make the best choices for their needs and budgets. Most people understand the fundamental need for insurance, but our financial advisors are here to be your partner towards financial freedom,” Villar emphasizes.

The key to getting the right insurance to protect everything that matters is getting sound advice, the kind of advice AXA Philippines is ready and able to provide, along with every type of insurance to help you protect what matters. Every person’s insurance needs are unique, and they also change over time and with age, and differences in circumstances. For a thorough professional financial needs assessment, AXA Philippines is the only name you need to remember. Go to https://www.axa.com.ph/ to learn more about how best to address the insurance needs that are unique to you.