THE PHILIPPINE American Life and General Insurance Co. Inc. (Philam Life) launched on Monday a product that shoulders costs for illnesses and accidents of babies and children while helping save for their future.
Philam Life introduced a new package of its AIA Med-Assist insurance which covers 90% of in-patient hospitalization for persons aged 0 to 17.
Philam Life Head of Products Tennyson Paras said the product is designed for first-time parents who usually have little knowledge on emergency cases of babies and are financially inadequate to pay for their children’s hospitalization.
“Most parents will agree that the first five years is the most vulnerable age of children. As parents, we do everything we can to ensure they are healthy and provide their needs during this critical period in their lives,” Mr. Paras was quoted as saying in a statement.
Philam Life said more than half or 54% of a household’s budget is spent on medical fees which it said leaves families with little money to pay for other basic needs.
“We wanted a product that can give parents peace of mind in case of hospitalization. As a parent myself, I understand the additional burden that these unexpected medical expenses have on families. With AIA Med-Assist, they can simply focus on taking care of their children and recovery,” Mr. Paras said.
The insurance policy can be renewed once the child reaches 17 years old to extend its delivery of benefits until the age of 80.
The new product also has an investment fund and life insurance coverage for the beneficiary of the insured, which will be activated upon the death of the latter.
The insured can also receive the account value of the policy when its owner reaches 80 years old and has not applied for any claim on the insurance policy.
Philam Life Chief Executive Officer Kelvin Ang said AIA Med-Assist will help expand insurance coverage among Filipinos to reduce their financial losses from unexpected events.
“Making AIA Med-Assist available for children is another indication of our commitment to fulfill our mission of racing against risk to protect Filipino families from life’s uncertainties,” Mr. Ang said in the statement.
Philam Life said insurance penetration remains low in the Philippines, based on the data from the Insurance Commission. It said payment for premiums to insurance firms comprised only 1.69% of the country’s gross domestic product in September 2019.
For Philam Life, Mr. Ang said the company paid less than 0.26% of its clients’ fund last year which he said represented a tiny amount of Filipinos’ possible expenses for emergency cases amounting to about P2.7 trillion. — K.K.T. Jose