Image via WikipediaFinancial IQ Philippines Quick Hit(s):
Yes, but OFW has to return to Philippines (even only while he/she is transacting the insurance) if he/she wants to buy life insurance in Philippines.
Can OFWs avail of life insurance protection? How? My two uncles are overseas Filipino workers and a cousin is a seaman. Are there special requirements for OFWs to buy life insurance and health insurance depending on what countries they’re based in or the nature of their work, etc.? I hope to become an engineer and also work abroad because our government leaders do not create the environment for a good economy here so hardworking people need to work overseas.- I suggest that since a lot of people read The Philippine Star, you write in your column to ask the government and life insurers to give special discounted insurance plans for OFWs. How can OFWs abroad buy life insurance from Philippine companies? Do they have agents overseas?
Renato M. Mendoza, 17 years old, student, Mandaluyong City
Answer
The good news is the Philippine government, by virtue of Republic Act 10022, Section 23, requires recruitment and manning agencies provide insurance coverage for each worker whom they deploy overseas. Included in this compulsory insurance coverage are: life insurance for natural and accidental death, total permanent disability as well as non-life insurance that covers repatriation cost, subsistence allowance benefit, compassionate visit, medical repatriation and medical evaluation. This is a good starting point for workers who are venturing overseas for the first time.
As for your personal life and career progress, you have to continuously assess your financial needs and plan accordingly. Life insurance agents can work with you in developing and implementing your financial plan.
Generally, life insurance companies and their agents can only do business in the country where they are licensed to operate. Further, our insurance law requires that a person buying life insurance must sign the application form in the presence of his/her agent. Therefore, the best time for an OFW to purchase an insurance policy from a Philippines-based company is while he/she is here, during vacation or training.
The country and nature of work are important considerations in life insurance. Premium rates (cost of insurance) vary according to the risk associated with one’s occupation. An office employee, for instance, pays less for the same type of insurance, than a construction worker. In terms of workplace, insurance companies usually refer to POEA advisories on travel bans and apply the same restrictions to life insurance applications.
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