Investing with insurance companies

The growing commercial and industrial economy gave rise to the emergence of insurance companies here in the Philippines. In line with this, people nowadays lean towards long term investments over short term investments. 

Rather than investing your money and saving it on commercial banks with  few or no interest at all, insurance companies provide higher interest than that of the former. However, it is important to note that not all insurance companies fulfill its duties and liabilities under the law. Some companies built it for money making schemes and as a result, policy holders are the one with the disadvantage and at loss.

Before you invest your money to an insurance company, take note of the following:

1.  Do your research, find an insurance company that suits you and has good reputation.
2. When an insurance agent offers you to invest in his insurance company, go back to number (1).
3. After having to find the suitable insurance company for you, contemplate on the advantages and disadvantages if you plan on investing huge amount of money (or not).
4. After subscribing and becoming a policy holder, study your policy. Know your rights as an insured policy holder of the company.
5.  Ask for a receipt after paying your premiums. (In case something happens)

I encountered an insurance company who do not want to enforce the claim of the policy holder by reason that the said policy holder is not the owner of the thing insured. In fact, the policy holder is the owner of the policy of that company and the thing insured is not yet under the name of the policy holder.

Basically, the argument of the insurance company is that the policy holder cannot claim the policy because he is not the owner of the thing insured regardless of the fact that he is the policy holder. The policy holder already paid a premium of P10,000.00.

When a similar case happens to you, try to take note of the following:

1. When you feel that you are the victim in the case and the insurance company is being unfair. Talk to the authorized insurance personnel of the company and state your reasons for not agreeing with them.
2. If they do not compromise with you, seek a lawyer for legal advice. There are few lawyers who can offer you pro bono if you are in tight budget or you can go directly to the Public Attorney's Office (PAO) District Office near your residence.
3. If you have friends who study law, you can seek legal advice with them or they may help you at some point or enlighten you about your rights as an insured policy holder.
4. Make sure that the communications between you (as the policy holder) and the insurance company are in letter form (not oral), you might want to send them registered mails so that they cannot deny it in case a full blown case emerges.
5. The Insurance Commission offer public assistance, you may go to the Insurance Commission and report the insurance company.

So there you have it. I hope this article is useful to everyone.

I'll be posting case digests soon--that's the primary reason why I created this website anyway. 😊