Did you know that the Philippines has one of the lowest insurance penetration rates in Asia at just 1.89% of GDP? According to the Insurance Commission, millions of Filipino families remain financially unprotected if something unexpected happens.
Life insurance is an essential part of good financial planning, but not everyone enjoys talking about it. There’s not the usual excitement like when buying a house or getting a new car. People usually brush off talks about it or simply put off buying one.
Until a serious, unexpected, and devastating life event happens, and usually, it’s already too late.
The good news? Getting life insurance in 2026 is easier and more affordable than ever. Digital insurers and established life insurance companies now offer flexible insurance solutions that you can explore and apply for straight from your phone, with premiums starting from low monthly amounts that can still fit a tight budget.
If you want financial security for yourself and your loved ones but are still on the fence, this guide will help you understand why you need to get life insurance now, how life insurance coverage works, and what to consider when choosing the right insurance plan for your goals and long-term financial protection.
First of all, what is life insurance?
A life insurance policy is a contract between you (the policyholder or insured) and a life insurance company (the insurer).
You agree to pay premiums regularly, based on an amount and schedule in your insurance policy.
In return, the insurer agrees to cover certain risks and provide a cash benefit to your beneficiaries if you die or experience covered events such as critical illness or major injury.
You agree to make regular payments of a set amount on specific times. The life insurance provider agrees to pay out the monetary benefit to your beneficiaries upon your death as stipulated in the contract.
Depending on the type of life insurance you have, you can also receive monetary benefits when you suffer a major injury or get diagnosed with a critical illness.
What are the different types of life insurance?
There are three main types: term life, whole life, and variable life (VUL) insurance.
| Type | Coverage Period | Has Investment? | Best For |
|---|---|---|---|
| Term Life | Fixed (1-30 years) | No | Budget-conscious, temporary needs |
| Whole Life | Lifetime | Some policies | Guaranteed lifetime protection |
| VUL | Lifetime | Yes | Protection + wealth building |
- Term life insurance covers the insured for a fixed amount of time. For example, you can purchase term life insurance products with coverage of 1 year, 5 years, or 10 years, or until you reach age 65. This is the most affordable option if you only need coverage for a specific period.
- Whole life insurance means you are covered for your whole life, hence the name. Premiums are higher, but you’re guaranteed protection no matter when you pass away.
- Variable Universal Life (VUL) insurance combines life insurance protection with an investment component. Part of your premium goes to insurance coverage, while the rest is invested in funds of your choice.
VUL is the fastest-growing insurance type in the Philippines, with premiums increasing by 15.47% in the first half of 2025.
When should you buy life insurance?
The earlier you get life insurance, the better, especially if you are the main source of income in your family. Premiums are typically lower when you are young and healthy, so starting early means you can secure higher coverage for less.
You may want to get life insurance when:
- You have dependents (a spouse, child, or ageing parents) relying on your income.
- You are building a business and want to ensure your loved ones are financially supported if something happens to you.
- You are planning long-term goals such as buying a home, saving for your child’s future, or creating a retirement plan.
Many Filipinos also underestimate how much medical costs and treatment can affect their finances.
Out-of-pocket health expenses are expected to climb into the hundreds of thousands over the next few years, putting significant pressure on families without health insurance or sufficient life insurance coverage.
How much life insurance coverage should you buy?
There is no one-size-fits-all amount, but a common starting point is to aim for 7 to 10 times your annual income. This helps ensure your insurance plan can cover:
- Daily living expenses for your family.
- Ongoing bills, debt repayments, and business obligations.
- Final expenses, such as funeral and estate settlement costs.
- Big milestones like your child’s future education and your spouse’s long term goals.
You can adjust your coverage depending on your budget, lifestyle, and financial goals. The key is to avoid underinsuring yourself. Many Filipinos say they want more financial protection and are planning to increase their insurance coverage because they worry about rising medical costs, inflation, and how these will affect their future.
If you are unsure, a licensed financial advisor can help you:
- Review your account balances, savings, and debt.
- Estimate how much cash your loved ones would need if your income stops.
- Recommend a mix of insurance products that fit your budget and financial goals.
Why should you get life insurance?
When you get life insurance, you are buying more than a policy; you are buying the following:
For your peace of mind
If you have young children, siblings, or ageing parents as your dependents, you can stop worrying about what will happen to them if something happens to you.
When you’re insured, you can rest easy knowing that your loved ones will receive an income replacement in the event of your passing.
You won’t have to worry about how you will deal financially if you meet an accident, suffer an injury, or get critically ill.
Life insurance will provide both short and long-term benefits when you face life’s uncertainties.
For your loved ones
Getting a life insurance policy may be a financial decision. But it’s also an emotional one because you are really doing it for the people you love.
If something happens to you, you will not leave them in a bind. In a way, you will still be taking care of them and fulfilling your responsibilities even if you’re already gone.
With life insurance, you are protecting them from catastrophic financial losses that can happen when you pass away unexpectedly.
For more time and options
When a breadwinner suddenly passes away, loved ones who are left behind usually have to make quick and tough decisions. And since they are still grieving for their loss, they’re not yet in the right place emotionally to be making good choices.
With life insurance coverage, the bereaved will have time to adjust, cope, and make decisions that will be beneficial for them for the long-term.
They can pick up the pieces and take things one day at a time without worrying about how they’re going to pay the mortgage or the kids’ tuition.
For financial assistance when you need it most
The benefits of your life insurance policy will be released immediately when you need it. If your policy has a hospitalization or critical illness rider, you can use it to pay for treatments and other hospital expenses so that you can only focus on getting better.
For living benefits
Life insurance not only provides death benefits for the insured’s survivors but living benefits to the insured as well. There are different life insurance products which you can purchase that will give benefits for other financial emergencies, for your children’s education, or for your own retirement.
For your financial stability
You may be working for several years now and still haven’t saved up for your future.
It’s very easy to spend on shopping, travel, and other material possessions. But as you grow older, you will realize the value of saving while you’re still young.
With life insurance, you can get a headstart on the future that you want for yourself and your family. Putting your hard-earned money in a life insurance policy will give you that sense of fulfillment that you’re not wasting a single centavo.
You are, after all, investing in your child’s future education, your future business, or your retirement.
Things to consider before getting life insurance
Before you explore different insurance solutions, take a step back and review these key factors.
1. Your age and health
Your age and health significantly influence your premium. In general, the younger and healthier you are when you get life insurance, the lower your long-term costs.
If you smoke, drink heavily, or have existing health conditions, your premiums may be higher, or you may need to undergo medical treatment evaluations.
Insurers are increasingly aware that issues like stress, anxiety, and other mental health concerns are linked to money worries and health risks, which is why some insurance products are starting to offer more wellness-focused benefits.
2. Your financial security and budget
Look honestly at your finances and budget. Ask yourself:
- How much can you comfortably pay for premiums each month or year?
- How stable is your income from your job or business?
- How much existing debt and fixed bills do you have?
Even if money is tight, there are insurance solutions designed around more modest premiums, especially from digital insurers that offer streamlined services.
The goal is to offer protection without compromising your ability to save and work toward your other financial goals.
3. Your lifestyle and long-term goals
Your lifestyle and long-term goals should guide your choice of life insurance plan. For example:
- If you have a high-risk job or hobbies, you may need more coverage for treatment and disability.
- If your focus is on building wealth and savings, a VUL or endowment-type insurance plan might better match your goals.
- If you mainly want to protect your family against the financial burden of your death and final expenses, a simpler term insurance policy may be enough.
Think about what truly matters, your child’s future, your spouse’s financial security, your business, and your own retirement plan, and let those priorities guide the type of coverage and plan you choose.
How to choose a life insurance company in the Philippines
Not all insurers are the same. When selecting a life insurance company, consider:
1. Regulation and accreditation
Always check that the company is accredited by the Insurance Commission, which oversees insurance providers in the Philippines. The Commission regularly reports on premium growth, insurer assets, and other indicators that show which companies are financially strong.
2. Track record and awards
Look for awards such as the Golden Arrow Awards or other recognitions for good corporate governance. These can be helpful signals of a company’s commitment to ethical practices and reliable insurance products, alongside its financial strength and accreditation from the Insurance Commission.
3. Product range and flexibility
The best insurance solutions are those that can be adapted as your goals grow. Choose providers with a wide range of insurance products—from simple term insurance plans to VUL, health, and critical illness coverage, so you can adjust your coverage as your life changes.
4. Customer assistance and claims experience
Strong after-sales assistance matters. Check reviews and talk to existing policyholders about how quickly the insurer pays claims, how responsive their support teams are, and how easy it is to manage your account online.
Final Thoughts
Getting life insurance is not just about numbers; it is about what—and who—really matter to you. It is about making sure your loved ones have the funds to move forward, pay essential bills, protect your business, and continue chasing their goals even after a loss.
If you are ready to get life insurance, start by:
- Reviewing your budget and key financial goals.
- Checking the Insurance Commission’s list of accredited insurers in the Philippines.
- Speaking with a trusted financial advisor to build a secure, personalised insurance plan.
The sooner you act, the more options you will have, and the less you will pay in the long run.
Getting covered today is one of the clearest ways to protect your family, your future, and the life you are working so hard to build.