Disability Insurance: Why the Working Filipinos Need It?

Accidents are inevitable. As much as possible, Filipinos pray not to be at the receiving end of such tragedy. The worst thing about being involved in such misery is when it affects the earning capacity of a person. Not to mention if that person is the only provider or a family’s breadwinner.

Wouldn’t it affect not only the person’s capability but other lives affected by such occurrence? Imagine the mother who’s watching after 3 kids at home, risking her career and her capacity to work so that she can focus on tending to her family’s need. Or how about the oldest sibling’s goal to achieve tertiary education so that she can free her family from the tentacles of poverty? What would happen to them if the family’s means of living is hampered?  

This article is written with the purpose of informing Filipino families that you can never know what happens next and being prepared and ready to face it is a must. There are a lot of health risks associated to the sedentary lifestyle of office workers, people involved in the BPO industries that are working night-shift to cash in a few extra, and persons engaged in physical labor like carpenters, drivers and many among others. 

In light of this situation, Philkotse.com will discuss what disability insurance is, how it works, the advantage of having one and what the government’s intervention to such uncertainties is. Every working Filipino needs security and assurance, which every ounce of his efforts will not turn into something vain and useless.

1. What is Disability Insurance?

This insurance aims to provide monetary compensation to an insured worker in cases where accidents occur, and it renders him disabled, thus incapable of earning, whether in a short-term or long-term period. There are incidents wherein disabilities might be partial or full ones. Various companies and organizations differ in criteria and conditions to which a person can obtain the claims.

This insurance aims to provide monetary compensation to an insured worker in cases where accidents occur

2. What are the advantages of having disability insurance?

Now that you have an overview of what disability insurances are, it’s now time to tackle the advantages of having one at your disposal.

2.1. You have money when you need it the most

Having disability insurance is compared to having a lifesaver. During the times that an injured person isn’t capable of performing daily working tasks and needs to recover, your insurance will compensate for the losses you incur. Living expenses need to be paid, and without such security, you and your family members will have a hard time looking for means to pay the bills and the utilities.

Having disability insurance is compared to having a lifesaver

2.2. Focus solely on recovery

The dangers of tomorrow are scary. Not being prepared especially in terms of financial capabilities will stress you out not because you’re in such tremendous pain but because you’ll have to look for other sources just to cover for the medical expenses and for the bills that will pile up. With disability insurance as your safety net, you can focus on gaining your strength and recovering to join the workforce again.

With disability insurance as your safety net, you can focus on gaining your strength and recovering to join the workforce again

2.3. Tax-free benefits

An insurance company will surely slash out some of the necessary deductions from the amount that they’ll pay you. However, the net proceeds will surely be tax-free, but that also depends on the policy you bought. Before you purchase insurance, make sure that you read into the agreements and conditions to make sure your premiums are tax-free.

Before you purchase insurance, make sure that you read into the agreements and conditions to make sure your premiums are tax-free

2.4. Suitable for many jobs

An insurance policy you entered into an agreement during a specific task at a private company won’t necessarily lock you down into receiving disability benefits for that work. It is flexible enough to be utilized despite your initial resignation, promotion or other work-related decisions that affect your employment status.

An insurance policy you entered into an agreement during a specific task at a private company won’t necessarily lock you down into receiving disability benefits for that work

2.5. Medical expenses and packages are taken care of

Disabilities need some level of rehabilitation to be cured. Accompanied by numerous hospital visits, medicines of some sort and laboratory fees (x-ray fees and other procedures), all of these medical actions cost a fortune. Being disabled doesn’t have to mean that you should be 6-feet under debt. This shouldn’t happen to anyone. Thus, investing in an insurance policy is a worthy expenditure.

Probably the most significant benefit of having disability insurance is peace of mind. Nothing beats the calmness inside that tells you that every expense is covered.

Disabilities need some level of rehabilitation to be cured

3. Government Interventions

For instances that a hardworking Filipino cannot spare money for expensive disability insurance, there are agencies in the Philippines that is dedicated to providing security for these types of incidents. People who are employed in the private sector have the Social Security System (SSS), and for those engaged in providing services for LGUs and government-owned/managed enterprises, there is Government Security Insurance System (GSIS).

As mandated by the law, all employers must register their employees and pay a portion of their contribution.

People who are employed in the private sector have the Social Security System (SSS) 

To generalize the terms and conditions that will serve as an example, we’ll use the SSS scheme concerning their criteria for disability benefits.

There are 2 ways wherein a beneficiary claims his benefits:

• Lump-sum amount
• Monthly pension

A SSS agent shall determine this upon visiting their nearest branch and submit an application and necessary documentation as required by the agency.

The computation for the monthly pension is usually under the basis of the number of monthly contributions and how long is a beneficiary a member of the agency before the period of contingency. Payments are made to a member’s savings account with partner banks of the agency.

There is nothing more horrendous than a person who isn’t financially ready when a tragedy strikes. The least that people could do is to prepare for it. Risks and hazards are everywhere. With the added caution and working safety measures that a good organization implements, the impact of such incidents are mitigated. You only have one life. It’s as precious as a diamond and as fragile as a glass. No other person is responsible for its health and safety than yourself.  Make sure you wisely use it and take care of it as you only have one life to live.

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