Educational plans top insurance priorities of Mindanao consumers

MANILA, Philippines - Educational plans, health and life insurance are the priority of Mindanao residents according to a survey by Sun Life of Canada (Philippines) Inc.

It noted that 42 percent of respondent said getting an educational plan stood as the most urgent concerns in the next couple of years, while 36 percent said they plan to purchase  health  insurance.

Conducted in Davao and Cagayan de Oro with 200 respondents in the second half of 2013, the survey showed that more Mindanaoans aim to purchase products including educational plan, health insurance, life insurance, and pension plan.

Twenty-eight percent is considering purchasing life insurance and 24 percent intend to get a pension plan.

However, Sun Life said the intention does not necessarily ensure the respondents will actually push through with the purchase.

The Mindanaoan’s budget is still allocated to food, house rental or mortgage, and education. But only one percent of the respondents stated that investments and insurance are included in their monthly budget allocation.

“What they could be missing is that it is with investments that they could grow their money and insurance is their means to protect it,” the survey indicated.

While they will have to spend for both, the benefits may well be worth it.

“In the long run, these could benefit them far better than entrusting all their money in a savings account – which, according to the survey, is how Mindanaoans define financial  security  (37  percent)  as well as their preferred preparation for anticipated life events (71 percent),” Sun Life said.

Mindanao has the highest nationwide incidence of keeping savings at home (14 percent).

The survey said that considering the interest that people have in financial instruments, it is probably best to take advantage of this and conduct learning sessions so that Mindanaoans may know how they can diversify their money so that they could maximize its earning potential.

Sun Life advised that a good way to start to learning more is to log on to brighterlife.com.ph, Sun Life’s microsite, which contains  plenty of practical tips, useful information, and even inspiring stories that can motivate one to tread the path to financial freedom.

Sun Life also has financial advisors who can help them assess their needs and provide the information on the financial instruments that can meet those needs.