Different Types Of Philippine Life Insurance

Insurance is a form of savings that is needed by the poor even more than the rich. The problem is that the available coverage for Philippine life insurance at presents needs over several premium payments a month which is beyond the capability of most of the entrepreneurial poor serviced by the micro finance organizations.

The good thing is that the Department of Finance in the country is currently reviewing the proposal from the insurance commission to increase its supervisory power over the Government Service Insurance System and Social Security System which offer various types of promising life insurances.

Insurance is something that almost everyone will need in time and you should have enough understanding about it before you consider having one. It is often required particularly in the cases of motor insurance. It is somewhat a form of risk management that spreads risk of several individuals in exchange for small payments from each. To be more specific, life insurance transfers some types of risk such as accident, natural disaster, illness, theft and more from one person or group to a more financially-sound entity in exchange for payment. This is more popularly known as a premium that is often annual or monthly. If you are interested to acquire one of the available Philippine life insurance then you should have to check on the following types:

1. Motor Insurance - This type of insurance includes automobile, aircraft, truck, motorcycle, boat, or any other kinds of motorized transportation. It is probably the most common type of life insurance which is being offered in various countries. This insurance covers the insured party against financial loss that he may acquire for the repair of his vehicle or a third party’s in the even of the accident. The insurance company is bound to pay any losses as described in the life insurance policy.

2. Health Insurance - Almost all the well developed countries around the world have government funded health care which means that most citizens have access to medical facilities and treatment as well as the health insurance. In the Philippines, there is also a government funded health care which is given to the poor that are not capable of paying the required contribution. Hence, it is very beneficial for the poor since they can really rely on this insurance whenever one of their families is sick and have to be confined in the hospital.

3. Disability Insurance - This type of insurance can protect workers from illnesses and injuries which prevent them from doing their jobs. It can pay for existing commitments the insured person may have such as outstanding mortgages, utilities, bills, and more. Permanent disability that prevents the insured person from working again is covered by total permanent disability insurance that provides the disabled employee with benefits for the rest of his or her life.

Philippine life insurance sector is a growing sector of the financial services industry that is poised to expand even more in coming years. As the country emerge from the third world and more affluence and exposure to the insurance industry and financial markets grow. Hence every type of insurance in the Philippines is all set to grow in the future.

There are several international insurance and reinsurance firms operating in the Philippines as well as the local firms. Moreover, the laws on insurance in the country can be found in the insurance code of 1978, presidential decree #1460 which outdated presidential decree #612. The insurance contracts in the Philippines are primarily governed by the insurance code and subsidiary by the civil code.

There are a number of Philippine life insurance companies that offer various types of life insurances, these companies includes: Prudential Life Plans, Ayala Life Assurance Inc., Philam Group of Companies, Government Service Insurance System, and more. Thus if you don’t have any insurance at the present then you could consider having one if your budget will permit. Well, if not then you could acquire at least the health care insurance in the country which is granted by the government to the unfortunate people who can’t pay for the insurance contribution.