Is Insurance a Luxury or a Necessity? A Filipino Perspective.

More than half of Filipinos now view life insurance as a necessity, according to the 2024 Philippine Understanding of Life Security & Envisioned Goals (PULSE) study. This marks a significant shift in how the country thinks about financial protection. The study, conducted by NielsenIQ for the Philippine Life Insurance Association (PLIA), found that nine in 10 respondents believe life insurance is important, and six in 10 consider it essential for financial planning. Yet despite this high awareness, actual ownership tells a different story. A separate 2025 study in General Santos City found that only 28% of respondents had life insurance, and 26% had health insurance. The gap between belief and action raises a question that many Filipino families face: is insurance a genuine necessity, or a luxury that can wait?

Why the gap between belief and ownership persists

The tension between viewing insurance as important and actually buying it comes down to several overlapping factors. The PULSE 2024 study identified key barriers: lack of trust in digital platforms, concerns about data security, and worries about online claims processing reliability. Pricing and value for money also rank high on the list of concerns, alongside the ease and speed of application and access to customer support. These aren’t abstract issues — they reflect real hesitation from people who see the value but aren’t convinced the system will work for them when it matters.

Cultural mindsets that shape the decision

Filipino cultural values play a powerful role in how insurance is perceived. The “Bahala na” mindset — a fatalistic attitude that leaves outcomes to fate — is often cited as a reason for reluctance to insure. Reliance on extended family support also reduces the perceived need for formal financial tools. When a crisis hits, many Filipinos turn to relatives for help rather than an insurance payout. This safety net, while valuable, can create a false sense of security.

Another common misconception is that life insurance is a luxury reserved for the affluent. Registered financial planner Randell Tiongson points out that this perception leads many to deprioritize it, even though insurance can be tailored to various income levels and financial goals. The reality is that the absence of coverage leaves families financially vulnerable to illness, disability, or the death of a breadwinner — events that don’t discriminate by income.

Married individuals tend to show different insurance behaviors than single people, driven by different financial priorities. The General Santos City study also found that insurance uptake is more common among educated and economically active individuals, suggesting that financial literacy and disposable income are closely tied to ownership. Subjective norms, perceived risk, and behavioral control significantly influence purchase intention — meaning how a person views risk and their own ability to manage it matters more than what friends recommend.

What changes the answer for different Filipinos

Whether insurance feels like a necessity or a luxury depends heavily on your situation. For a single young professional with no dependents, the immediate need is lower — but so is the cost of entry. Term life insurance, like Insular Life’s iProtect, offers renewable coverage at a lower cost, making it accessible even on a modest budget. For a breadwinner supporting parents and siblings, the calculation flips entirely. The risk of leaving dependents without income becomes a pressing concern that no amount of family support can fully replace.

The PULSE 2024 study found that risk protection remains a core concern for Filipino families, but the way people want to learn about insurance is changing. Many respondents prefer video tutorials and webinars to navigate their options, especially younger, tech-savvy users. Digital platforms are increasingly shaping consumer choices, but the trust gap remains — people want to understand what they’re buying before they commit, and they want reassurance that claims will be paid without hassle.

Government support alone is not a reliable safety net. Relying solely on state programs for financial security is risky and can leave families exposed to hardships. Insurance fills a gap that public systems cannot cover, particularly for critical illness, disability, and long-term care. The question isn’t whether insurance is valuable — it’s whether the product matches your specific needs and budget.

How to approach insurance as a Filipino consumer

Start with term life if budget is tight

Term life insurance provides coverage for a set period at a lower cost than permanent policies. Products like Insular Life’s iProtect are designed to be renewable and affordable. This is often the most practical entry point for young professionals or families with limited disposable income. The key is to get coverage in place while you’re healthy and young, when premiums are lowest.

Look beyond fear-based messaging

Insular Life’s “Love in Life” campaign reframes insurance as an act of care rather than a precaution against fear. Chief marketing officer Gae L. Martinez links insurance preparation to Filipino values — breadwinners sacrificing for families, overseas workers sending money home. This shift from fear to empowerment makes the decision feel less like a burden and more like a deliberate choice to protect what matters. When evaluating a policy, ask whether it aligns with your goals, not just your fears.

Compare products by life stage

Insurance needs change over time. A policy that makes sense at 25 may be inadequate at 40. Insular Life offers Wealth Assure Plus with adjustable coverage by life stage, and Abundance for saving toward specific milestones like education or a home. Retire Assure is described as the country’s first true retirement product. The right approach is to review your coverage every few years and adjust as your income, dependents, and goals evolve.

Address the trust issue directly

If you’re hesitant because of concerns about claim settlements or complex policies, take concrete steps to verify before buying. Check the insurer’s track record — Insular Life, for example, has operated for 115 years and has been present through world wars, recessions, and pandemics. Read policy documents carefully, ask agents to explain exclusions in plain language, and look for customer reviews about claims experiences. The PULSE study shows that ease and speed of application and access to customer support are critical factors — use these as benchmarks when comparing providers.

Frequently asked questions about insurance in the Philippines

Making the call for your own situation

The evidence from the PULSE 2024 study and other research is clear: Filipinos broadly recognize insurance as important, but cultural, financial, and trust barriers keep ownership low. The decision ultimately comes down to your personal circumstances — your income, dependents, risk tolerance, and financial goals. What’s not up for debate is that the financial vulnerability of being uninsured is real, and the cost of coverage is often lower than people assume. The best next step is to educate yourself, compare a few options, and start with a policy that fits your budget today rather than waiting for the “perfect” time that may never come.

If this was useful, you might also want to read common insurance misconceptions Filipinos need to know.

Sources

Beginner’s guide to Philippine insurance — A practical starting point for understanding policy types, costs, and how to choose your first plan.

How insurance protects assets from natural disasters — Explores why coverage matters in a disaster-prone country and what policies address property and livelihood risks.

Filipinos increasingly see insurance as a necessity, industry study shows. Manila Standard, 2025.

Spill Some Tea, I’ve Got You Covered: Understanding Filipinos’ Perceptions of Insurance. IJRISS, June 2025.

The misperception of life insurance in the Philippines. Philippine Daily Inquirer, 2025.

How Filipinos are rethinking life insurance. Manila Standard, 2025.