A Study Revealed That Most Filipinos Are Financially Unprepared For Sudden Health Emergencies
A recent study conducted by Manulife Philippines revealed that many Filipinos are financially unprepared for sudden health emergencies and critical illness.
The insurance company surveyed 500 Filipinos across the country between January to July 2020, and here’s what they found out:
- 54% of Filipino households use out-of-pocket payment to finance their health expenditures.
- 34% finance health expenses through government schemes and contributory health financing.
- 12% of respondents said they finance health expenses through private health plans.
- 1.5 million Filipino families are driven into poverty each year due to unexpected health expenses.
- Generally, Filipinos feel they are financially unprepared for critical illness expenses.
- Filipinos’ top three priorities in life are: staying healthy and avoiding illnesses, having sufficient savings, and family’s well-being.
- Filipinos’ short term goals include savings for medical emergencies, emergency funds, and healthcare. Meanwhile, top long term goals are life insurance protection and retirement.
- Filipinos also consider being a burden to their family among their top worries. Losing a loved one is also high on their list of fears.
Melissa Henson, senior vice president and chief marketing officer of Manulife Philippines cited that there has been an increase in interest on insurance due to the fear brought about by the COVID-19 pandemic. She expounded that this fear and concern fuel the demand for insurance purchase overall, with 77% planning to buy insurance, mostly life and health-related products, in the next 18 months.
Henson then advised that Filipinos must embrace healthier habits and financial preparedness such as having a healthier lifestyle and insurance coverage. She added that health insurance can give a person the confidence and assurance that he or she can weather through any health-related financial setback when a family member gets seriously ill.