The Philippines: Setting Up Life Insurance

The Philippines is a haven for expats, with a large community of Filipino and English speakers. Population statistics, which date back to 2010, show that there were 177,000+ foreigners living in the country. While this figure is outdated, many people claim that the number of foreigners has likely doubled in the past decade.

Expats are leaving their home country for numerous reasons, whether it’s seeking a better life, wanting different experiences or just for adventure.

While expats may have a lot of unique traits, they all share one common risk: death can occur at any time. Term life insurance and critical illness insurance provide the coverage foreigners need when living abroad.

Philippines Insurance Options for Expatriates

The Philippines is known for its low cost of living, great environment and diverse culture. However, insurance premiums can be expensive, with rates between 24,000 and 55,000 PHP annually and monthly payments of around 4,500 PHP.

Converting this figure to USD, you’ll be paying $93 per month for life insurance.

There’s a good chance that you’ll pay higher insurance premiums in the Philippines than in your home country. Online insurers offer a more affordable option in most cases.

There’s always a level of uncertainty when living abroad, so you’ll want two main forms of insurance:

  • Critical illness, which offers you the coverage you need for serious illness when living abroad. If you have a heart attack and need immediate attention, coverage will “kick in” and make sure that you don’t exit the hospital in debt.
  • Term life insurance is a leading option in estate planning that will provide a payout if you die. These policies are not for your entire life, but for a specified period of time, i.e. the term of the policy.

While you can find policies in the Philippines, you can’t be sure that you’ll be covered as a foreigner. As an expat, you’ll be required to fill out paperwork that you may not understand and provide in-depth information about your health and living arrangements.

If you must return to your home country for any length of time, the policy may even become void. The last thing any expat wants is to pay into an insurance policy only for their loved ones to find out that the insurer will not honor it.

In this scenario, it’s likely that the insurer will repay your premiums back to your family. The premium amount you’ve paid will be far less than the payout from a valid insurance policy.

There are always risks when obtaining insurance outside of your home country. For one, if the policy is written in Filipino, you may not fully understand the terms of the contract. This is just one of the many risks you face.

Risks of Securing Insurance in The Philippines

COVID-19 disrupted the insurance market in the Philippines due to lower sales and investment. Expats were left questioning whether their insurance would cover testing, and critical illness insurance became a top talking point in the community.

Online sales were allowed via temporary licenses, and a lot of expats started seeking policies.

A main issue was that the policies were not in a person’s native language. The risks of not understanding a policy include:

  • Lack of understanding exemptions
  • Not knowing what’s fully covered
  • Making errors when filing an application
  • No disbursement upon your demise

You also risk paying more for your premiums because you don’t understand what you’re signing. Filipino and English are commonly spoken, but there are 182 native languages spoken throughout the country.

Calculating the cost of an insurance premium has several factors involved, so it’s important to know the ins and outs of your policy. Small mistakes can cost you a lot of money in insurance premiums.

Securing Expat Term Life Insurance in The Philippines

If you’re currently an expat living in The Philippines or want to move there in the future, you should seek expat term life insurance and critical illness insurance. Online providers offer you the comfort of:

  • Reading terms in your own language
  • Coverage in multiple, often over 200, countries
  • Quick coverage in under an hour

Younger policyholders, under 50 and still in good health, will be able to obtain insurance policies with no medical exam. Policies are more difficult to secure if you have a history of medical issues or work in a dangerous occupation.

You can generate a quote in as little as 15 minutes online,

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