Life insurance: Assurance for OFWs
Dennis Christian Hilanga in Tips and Advices
Aug 14, 2020 • 3 min Read
For Mark Jerome Bungag, an overseas Filipino worker (OFW) in the United Arab Emirates, availing life insurance is a safeguard. This is his ticket toward financial freedom when he retires.
“Para sa akin, mahalaga ang life insurance especially sa katulad kong OFW na sumusuporta sa aking pamilya sa Pilipinas,” he told Ang Pinoy.
Bungag, 26, is working as a student coordinator in Dubai for almost a year now.
“Panatag ang loob ko na kung magkasakit man o maaksidente ako ay may makukuha akong tulong mula sa insurance company,” he added.
Being the eldest child who financially supports his family, Bungag knows that he has to take care of himself now. At age 22, he has already paid monthly premiums for the policy that will secure his future.
“Ang insurance para sa akin ay necessity. Napakahalaga nito sa isang tao regardless sa kanyang edad,” he said.
OFWs like him are considered heroes for their money remittances that pump up the country’s macroeconomy. But while they’re chipping in tremendous effort in building the economy and providing for their families, OFWs often forget their welfare. One-third of those working abroad are in factories and construction sites. They are prone to dangers in these workplaces.
The existing Migrant Workers and Overseas Filipinos Act of 1995 guarantees OFWs insurance for accidental death, natural death, permanent total disablement, repatriation cost, subsistence allowance, money claims, compassionate visit, medical evacuation, and medical repatriation for free. Said law requires all agency-hired workers to be covered by the Agency-Hired OFW Compulsory Insurance (AHOCI) —a compulsory insurance policy set to shield OFWs from emergencies. But AHOCI only covers the basics and is only effective during the employment contract. This is not also applicable to direct-hired or name-hired workers. Thus, having an independent insurance policy will be a safety net for OFWs in times of trouble.
“If something bad happened to the insured, do you want to get the expenses from your pocket or do you prefer to get the payment for the expenses from another entity like an insurance company?”
People’s hesitation due to lack of information about life insurance is the main reason.
Starting from php1,500 per month payment or lower depending on the type of preferred policy, one can be financially protected from various critical illnesses such as heart diseases, diabetes, and cancer that are expensive to cure.
Traditional life insurances are now linked with investment components such as the Variable Unit Linked (VUL). This type of package may grow your money over time as part of it is invested in the stock market. The funds that you saved since the start of paying monthly premiums are substantially enough for you to retire with financial stability and enjoy finer things in life after years of hard work.
VUL is the type of policy Bungag owns. He said that he plans to withdraw cash from his funds by the time he reaches 40. Doing business or acquiring a property will be the fulfillment of his goal. For now, his focus is to save and invest more through his two-in-one insurance contract while flourishing his career abroad.
“Habang insured ako, kumikita yung perang ibinabayad ko na magagamit ko in the future sa pagbili ko ng bahay at lupa o pang puhunan sa negosyo,” he said.
Assurance from life insurance runs a lifetime, but it is a road less taken by many en route to financial literacy. No one knows what the future holds. In times of trouble, insurance will surely ease the burden and help you from unimaginable and unpredictable expenditures that could empty your pocket.
