Sun Life study shows more Filipinos making insurance a priority purchase

MANILA, Philippines - More Filipinos are embracing life insurance when taking into account their financial future, a nationwide survey on financial literacy showed.

“Life insurance is now considered by a third of the respondents as a priority purchase for the next two years,” Sun Life Philippines president and chief executive officer Riza Mantaring said in a press briefing.

The survey, known as Study of Lifestyles, Attitudes and Relationships (SOLAR) - Financial Literacy Advocacy Report (FLARe), allows Sun Life to gain insights on the public’s attitudes and behavior toward financial matters.

However, Mantaring said the study also reveals a lack of knowledge on several financial concepts despite an improving attitude towards life insurance.

Eight out of 10 Filipinos still prefer to save in banks to prepare for the next two to five years, she noted in the study.

Sun Life Financial chief marketing officer Lourdes Lopa added that people tend to go to the more traditional way of savings.

“This is because they are not aware of the other alternatives,” she said.

The common budget items of those surveyed were food, house, health, communications, children’s education, transportation, clothes, bank accounts, and insurance.

In terms of financial priorities, opening a business was the top priority, followed by buying lots, life insurance, education plan, car/vehicle, gadgets, health insurance, house renovation, house and condominiums, and durables or appliances.

The study had 1,100 respondents from all over the country, covering economic brackets A, B and C, requiring them to answer a three-item quiz regarding inflation, interest earnings and investments.

According to Lopa, Filipinos defined financial security as having enough bank savings.

Lopa explained that Filipinos divide their responsibilities between their families and personally.

“For personal worries, Personal safety accounts for 82 percent,” Lopa said. This is followed by security of income and health with 18.2 percent and 8.1 percent, respectively.

In terms of filial responsibilities, the top three concerns were children’s education, food and family health.

Results also showed that 51 percent of respondents would like to open a business in the next two years, 45 percent is setting aside for  buying real properties, and 39 percent is looking at buying insurance products.