On insurance, debt and corruption
By: Kristine Joyce Teves
Tags: Debt, Insurance, Corruption

A year after I started working in the export industry, one of my colleagues taught me the value of life insurance. My mentors back then always reminded me to think long term and that I need to be financially smart to compete with inflation. By thinking long term and competing with the inflation, there were some trade offs — reduce unnecessary expenses, live within your means, and add another stream of income.

Photo by Karolina Grabowska from Pexels

It was challenging so to speak, given that I was barely earning money to pay my bills. I also never had a chance to fully convince my parents with me getting a policy, due to some bad reputation that was associated with the insurance industry by a foreclosed pre-need company which I prefer not to mention. Regardless of some objections, I still made a mature and individual decision to pursue it.

I started to work even harder to stretch my income and live a frugal life to meet my goal of getting a life insurance policy. I had the luxury of time and as well as the opportunity to do a side hustle, so I cannot just back off. There were days I had to attend some training at night to pass on some licensure exams, and some days to work for a part-time teaching job after my 7am to 4pm work schedule. It was tiring, yet meaningful because I know exactly what I am working for.

After having some earnest money to start with, I started analyzing a policy that is tailor fit with my needs. It was very promising, and I made it with the guidance of our unit manager. I could not imagine how far my hard-earned money can go by starting at that moment when I learned how the variable unit-linked investments (VUL) works. It was enticing to see how a monthly Php 3,000 peso saved by a 21 y/o healthy female can transform into a sum assured of Php 3 million peso in the future. That is quite huge and fair, considering the average life expectancy of a Filipino is only 70y/o. Not only that, but there are some living advantages such as: capital appreciation (interest from unit linked investments), daily hospital income (earnings that you can get when you are confined in more than 12 hours), waiver of premium (no need to pay for your policy in the event that you became permanently disabled), critical illness (receive certain amount of money in the event that you are ill based on the coverage that you have), to name a few.

With the thoughts of having a good life and luxury in the future, there were times that it was also accompanied by random “what ifs” — like, if I used that money to buy a rowhouse back then, I can be around 23 years away from having a property on my own, or I could have started a little business or some sort of minor house repair in Tarlac. Nonetheless, these were all merely “what ifs”, and a test of commitment and discipline.

I just always go back to the reason why I started it in the first place. I had to re-affirm myself that what I am holding onto at this moment is the “promise” in my day-to-day journey while walking on some random streets that are miles away from home, where there is a chance that a falling debris or a rushing car can hit me. I know that an insurance policy can at least show how much I have cared for my parents and siblings without giving them any financial burden in the event an accident or untimely demise happens to me.

Now, it pains me to hear about a big issue about the PhilHealth fund corruption in the news. Most of us are working just to survive to put some food on the table, while complying with the mandatory contribution like the PhilHealth so there is something we can rely on if we get sick, but it’s gone now — and it’s a 15B sum of money.

How can the top-ranking official turn a blind-eye and to these corrupt government officials who chose to steal money from the people’s pocket? Is it because there is a cut or commission that they get from those fraudulent acts, and they can easily escape using neck-brace, wheelchair, and some lick-ass?

I never debunk PhilHealth’s relevance, but with this anomaly, what if we just kept our contribution or put it into private health insurance, or other baskets? Do you think PhilHealth people have anything to rob?

*This was originally written last August 2020.*