Philam Life ups benefits in health insurance

MANILA, Philippines - The Philippine American Life and General Insurance Co. (Philam Life) has increased the coverage of its health insurance, or Health Invest, from 35 major critical illness to 56.

It had also increased the coverage for clients from age 65 to 75 years.

Philam Life chief marketing officer Jaime Jose M. Javier Jr. said that the enhancements allows more Filipinos to have access to health protection.

“The country’s total health expenditures is now over P460 billion. Ironically, private health insurance account for only two percent while private out-of-pocket accounts for more than half of the total expenditure,” Javier lamented.

In 2008, total health expenditure amounted to P285 billion, half of which are also private out-of-pocket sourced. Meaning, Filipinos are tapping their savings, seeking help from relatives and friends, borrowing money, and selling their assets to raise funds.

Out-of-pocket health spending is five times higher than PhilHealth spending, and eight times higher than what HMOs are paying out.

The three other leading sources of funds are government, social insurance and health maintenance organizations (HMOs).

Meanwhile, studies show that one person dies of stroke every nine minutes, and nine out of 10 Filipinos are at risk of getting heart disease.

Fourteen million Filipinos aged 20 and above are already hypertensive, and that three out of 20 Filipinos are at risk of getting diagnosed with cancer before reaching age 75.

The cost of treating cancer is at least P700,000, and the basic cost of treating heart disease can go as high as P1 million.

Yet 16 percent are prepared to pay for medical costs in case they are diagnosed with a critical illness.

Philam Life introduced Health Invest last year, but introduced enhancements to the protection and investment health-focus insurance product.

Health Investment gives plan holders: a comprehensive health and accident coverage; a health fund for future healthcare needs; security for family’s needs with life insurance coverage; and, convenient payment options. It is a unit-linked or investment and protection plan, where the benefits depend on the performance of PAMI Philam Investment Fund.

Payment schemes range from three-, five-, seven- and 10 years. Total premiums amount to less than P600,000.

For example, if a 30-year old client pays P55,950 every year for 10 years, he gets the following benefits: under the comprehensive health and accident coverage, one gets a critical illness coverage P500,000 until age 75; gets a waiver of premium, if diagnosed with a  major critical illness before age 75; and an accident coverage worth P1 million, until age 75.

More or less, by age 65, the client would have up to P5.28 million in total benefits for only P559,500 total premiums paid in 10 years.