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Everything You Need to Know About Microinsurance in the Philippines

Introduction

For most people around the world, financial security is difficult to achieve. Most individuals end up spending a large percentage of their wages to pay for bills and everyday essentials. In situations like these, very little money is set aside for future expenses or possible emergencies.

What Is Insurance?

Having inadequate savings poses a lot of risks, which is why people are often encouraged to buy insurance products. Insurance is a contract that provides individuals with financial protection against different kinds of losses in exchange for a regular premium.

Advantages of Insurance

Policyholders can take advantage of a wide variety of benefits depending on the kind of insurance they purchase. For example, a life insurance policy can provide compensation to a household after the primary breadwinner’s death. On the other hand, a health insurance policy can cover large medical expenses, such as surgeries and treatments. There are also insurance products that help protect businesses against liabilities and cover possible property damages.

Accessibility of Insurance

With the number of advantages you can get from insurance, it is clear that it is a good investment for those working their way towards financial freedom. However, not everyone can set aside money to pay for monthly or yearly premiums. A lot of people in developing countries earn just enough to cover their daily expenses, so investing in an insurance policy is often not an option. The desire to provide the lower class with the same financial opportunities as the middle and upper classes led to the popularity of microfinancing options.

Emergence of Microfinancing

While the concept of microfinance has been around since the 18th century, it only gained popularity in 1976 through the efforts of Muhammad Yunus and the Grameen Bank in Bangladesh to help improve the lives of the poor. Since then, microfinancing options, such as microinsurance, have become more accessible, giving less fortunate households a chance to achieve financial security.

What Is Microinsurance?

Microinsurance is a generally more affordable type of insurance product designed to meet the financial needs of low-income individuals and families. It can help cover possible costs brought about by unforeseen events, such as injuries, deaths, and property damages.

How Does Microinsurance Work?

Think of microinsurance as a backup plan for emergencies. Much like traditional insurance products, a microinsurance policy acts as protection against specific risks that you may encounter. In exchange for a regular premium, your microinsurance provider gives you a set amount of funds that you can reimburse when you need it.

How Does Microinsurance Differ From Traditional Insurance?

Premium

The main difference between regular insurance and microinsurance is the premium required for each policy. Since microinsurance is generally for low-income households, premiums are considerably smaller to make it more accessible.

Coverage

Microinsurance products often protect policyholders against a specific type of risk. For example, a health insurance policy can cover medical expenses for injuries, checkups, emergency care, and more. A similar microinsurance product can provide similar coverage, but it may be only limited to accidental injuries and deaths.

This setup gives individuals the flexibility to choose a policy that covers only what is most necessary.

Language

Traditional insurance policies often include a lot of financial jargon. In comparison, microinsurance policies are written in simpler language since the people who purchase these products are usually not as well-versed in the terms used.

Microinsurance in the Philippines

For minimum wage earners, finding affordable insurance in the Philippines is a difficult task. Car insurance, health insurance, and personal accident insurance are some of the most common types available, but low-income individuals cannot even consider buying them because they have to spend their money on more important obligations. Thankfully, Cebuana Lhuillier offers comprehensive microinsurance plans, such as ProtectMax, to help these disadvantaged people.

The microinsurance industry in the Philippines has been steadily growing in recent years because its financial products are more affordable for minimum wage earners. There are even laws in place to ensure that these microfinancing options remain accessible to individuals and families who need them most.

Purchasing a microinsurance policy in the country is relatively easy because most available plans require minimal paperwork. Even with just a mobile phone and valid ID, individuals can already buy their own plan.

Paying for premiums is also convenient for most policyholders because of the wide variety of payment options available. A lot of microinsurance plans can be paid in cash or through mobile applications and salary deductions.

Some microinsurance providers even assist individuals in filing their claims. Underwriters also won’t have to wait too long for their reimbursement because the processing of required documents usually only takes a few days.

Who Should Get Microinsurance?

All minimum wage workers and low-income households are encouraged to get microinsurance products so they can take a step towards achieving financial security. This microfinancing option is also ideal for farmers, street vendors, and small business owners because it can help them invest more in improving their livelihoods.

Why You Should Get Microinsurance

Protection of Assets

Microinsurance plans allow underserved communities to protect their valuable assets without breaking the bank. Policyholders can also have peace of mind, knowing that these products can help them maintain their standard of living.

Access to Basic Services

Low-income households may not have enough funds to access even the most basic services. By purchasing a microinsurance policy, these families no longer have to worry about shelling out a large amount of money in case of medical emergencies or natural disasters.

Less Out-of-Pocket Expenses

With a microinsurance policy, low-income households don’t have to scramble for cash during a crisis. They can simply make a claim to get the funds they need to cover the costs of damages or medical emergencies.

More Chances to Save Money

Since policyholders don’t have to take out money from their savings to pay for unforeseen events, they can set aside more funds for other necessities. They also get a chance to save up for nonessential expenses that could help improve their quality of life.

Investment Opportunities

Several studies have shown that low-income individuals tend to invest more in their livelihoods and new business ventures when they are protected by microinsurance. Since they have additional savings for other expenses, they become more willing to take financial risks.

Convenient and Accessible Financial Services

Microinsurance plans are specifically designed with low-income individuals in mind. Therefore, these policies are easily accessible to those in the informal sector. Microinsurance products are also made to be as comprehensive as possible to meet the needs of these people.

Where To Get Microinsurance in the Philippines

If you are looking for microinsurance, turn to none other than Cebuana Lhuillier. Through our microinsurance plans, we provide Filipinos with accessible and affordable services that help minimize the financial impact of disasters and other unfavorable events. We have around 2,500 branches nationwide, so you can purchase our microinsurance products no matter where you are in the country.

All our policyholders can take advantage of the following:

Affordable Premiums

24-Hour Claims Processing (Terms and Conditions Apply)

Simple Contracts With Minimum Restrictions

Simple Claims Documentations and Requirements

Type of Microinsurance Products Available in the Philippines

Cebuana Lhuillier offers more than 20 insurance and microinsurance products designed to help you with your specific financial needs. Whether you want coverage for your car or your business, you can rely on us to provide you with a comprehensive plan.

Individual Microinsurance

These types of microinsurance products refer to plans purchased directly by the policyholder for their personal benefit. Policyholders are also responsible for paying all required premiums.

Cebuana Lhuillier offers the following types of individual microinsurance:

MicroEnterpriseProtek

This is a property insurance program that covers all risks of property damages, accidents, robberies, and others.

ProtectMAX

Depending on each policyholder’s needs, this microinsurance product can be purchased to cover natural and accidental death, unprovoked assault and murder, and accidental dismemberment and disablement. Cash assistance can also be offered for medical emergencies and residential fire reconstruction.

ERCare

This microinsurance plan covers medical expenses for the treatment of eligible emergency conditions. ERCare is valid for one year from the date of issuance.

TeleCare

Cebuana Lhuillier TeleCare is perfect for people who require regular medical consultations. Policyholders will have access to 24/7 consultation services from licensed doctors. Individuals who purchase this plan can also take advantage of additional services, such as e-prescriptions, online issuance of medical certificates, and ambulance services.

Personal Accident Basic

The Personal Accident Basic plan covers accidental death, dismemberment, and disablement.

Personal Accident MyCare

Similar to the Personal Accident Basic plan, this microinsurance product covers accidental death, dismemberment, and disablement. However, the Personal Accident MyCare program has several exclusions.

Personal Accident Plus

This microinsurance plan also covers accidental death, dismemberment, and disablement, but policyholders have the added benefit of cash assistance for fires.

Personal Accident Prime

Cebuana Lhuillier Personal Accident Prime covers murder and unprovoked assault as well as accidental death, dismemberment, and disablement. Policyholders of this plan also get livelihood assistance, fire cash assistance, and a burial benefit.

HealthCare Plan Dengue

Individuals who purchase this health insurance plan will receive cash assistance for the treatment of diagnosed dengue patients.

HealthCare Plan Dengue+

This microinsurance product is similar to HealthCare Plan Dengue because it provides cash assistance for diagnosed dengue patients. However, this plan also covers accidental death or disablement.

COVID-19 Cash Assistance Benefit+

Through this program, we provide our clients with personal accident insurance that covers accidental deaths as well as those caused by COVID-19, dengue, and chikungunya. Policyholders will get loss of life cash assistance, medical reimbursement, and a daily hospital income benefit.

Pet Care Insurance

Individuals who want extra protection for their pedigreed dogs can purchase Pet Care Insurance from Cebuana Lhuillier. This microinsurance plan includes medical reimbursement, burial assistance, and more.

MicroBiz Protek

MicroBiz Protek is a comprehensive property and personal accident insurance plan specifically made for microenterprises in the Philippines. It protects the property and its contents against natural disasters, burglaries, and robberies. The policy also covers accidental death, permanent disablement, and accident medical reimbursement.

Group Microinsurance

Group microinsurance plans are provided to employees in a company. The premiums for these financial products may either be paid in full by the organization or shared with the member.

Cebuana Lhuillier offers the following types of group microinsurance:

TanodCARE

This microinsurance program is designed for barangay tanod officials and other personnel in the organization. Enrollees will have coverage for accidental death, disablement, and dismemberment, permanent total disability, unprovoked murder and assault, and more.

TodaCARE

Our TodaCARE plan was created to provide financial protection for transport group leaders, officers, and members. This program includes accident medical reimbursement, accident daily hospital income, and a burial benefit.

StudentCARE

With the Cebuana Lhuillier StudentCARE plan, educational institutions can protect their students from various dangerous situations. This microinsurance program has coverage for incidents, such as unprovoked murder and assault as well as accidental death, disablement, and dismemberment.

EmployeeCARE

Companies who purchase EmployeeCARE can provide their workers with medical cash aid for accidents, burial benefits, and coverage for personal liabilities.

SecurityCARE

The Cebuana Lhuillier SecurityCARE plan is a group personal accident insurance product for security guards and officers. Coverage of this program includes accident medical reimbursement, burial benefits, and more.

Other Insurance Products

Aside from our wide variety of microinsurance plans, Cebuana Lhuillier also offers several affordable insurance plans in the Philippines. These include compulsory third party liability (CTPL) insurance, general liability insurance, and bonds.

AutoCARE

Unlike CTPL insurance required by the government, our affordable car insurance plan provides coverage for damages, thefts, bodily injuries, and more.

MotorCARE

Through this insurance product, individuals can protect their two-wheeled vehicles against acts of nature, damages, thefts, and other incidents.

PharmaCARE or Insuremed

This personal accident insurance program is designed for consumers of various pharmaceutical products, including medicine. Insured members will receive cash assistance for fires as well as coverage for unprovoked murder and assault and accidental death, dismemberment, and disablement.

NegosyoCARE

Individuals with micro, small, or medium enterprises can purchase NegosyoCARE to protect their businesses from burglaries, robberies, and property damages. Policyholders will also have coverage for their money, securities, and payroll.

HomeCARE Insurance

Through our HomeCARE Insurance plan, individuals can protect their residential property and its contents from natural disasters, such as fires, earthquakes, typhoons, and floods.

Engineering Insurance

This insurance program is designed for various construction and civil engineering projects, such as buildings, roads, and bridges. The plan includes coverage for accidents that may result in the loss or damage of works in progress, materials, construction equipment, and machinery.

How To Buy Microinsurance From Cebuana Lhuillier

With all the microinsurance options we offer, you will surely find a financial product that provides the coverage you require. We have made the buying process easy so you can apply for a program as quickly as possible.

Read carefully through each policy to determine which one works best for you. Once you’ve decided what plan meets your needs, visit any Cebuana Lhuillier branch and request the microinsurance program you want. You will then be asked to present payment for the Certificate of Cover. After you fill out and submit your Certificate of Cover, you can finally secure a certificate for the microinsurance policy.

Once you are insured, you can enjoy the various benefits that come with your microinsurance plan.

Conclusion

Whether you want to protect your assets or you need backup funds for emergencies, a microinsurance plan can help you achieve your goals. These innovative microfinancing options could be the products you need to progress in your journey toward financial freedom.

No matter your financial needs, you can rely on Cebuana Lhuillier to assist you. Our team has the knowledge and skills to help you understand our wide variety of financial products. We will explain everything you need to know about each microinsurance policy to ensure that you make an informed decision.

For additional information about our microinsurance programs, feel free to get in touch with us today. You may also reach out to us to learn more about our other financial services and products. We will be more than happy to address any of your questions or concerns. Our team looks forward to hearing from you!