Pinoys ill-prepared for high cost of dying

March 12, 2024 | 12:00am

MANILA, Philippines — To live is costly, but so is to die.

Funeral expenses remain expensive in the Philippines, easily hitting at least P250,000 for a mid-range package and putting a significant financial strain on Filipino families.

Digital life insurance firm Singlife Philippines said most Filipinos are not prepared for death and its accompanying expenses.

As many would say, most families are just one medical bill away from falling into a debt trap, slipping into poverty and, worse, losing a loved one.

Data from Villar-owned Golden Haven Memorial Park showed that to die is to spend at least P3,000 to as much as P75,000 for a casket depending on the type of material.

Funeral ceremonies will also cost P10,000 for a budget funeral parlor, at least P15,000 to P250,000 for mid-range and as much as P500,000 for high-end, depending on the arrangements including flowers and decorations, as well as the length of the wake.

Burial costs are also high, considering that memorial lots are still the more preferred option of Filipino families.

Private lots range from P65,000 to P100,000 while mausoleums cost a minimum of P1 million. Garden lots and estate lots are on the more expensive side at P2 million and P18 million, respectively.

A more cost-effective method is through cremation, which starts at less than P20,000 up to P65,000.

During the launch of its Cash for Funeral Costs plan, Singlife Philippines co-founder and executive director Sherie Ng said there is a need to alleviate the financial distress of Filipinos that comes with the death of a loved one.

“Filipinos are family first and it’s important for them to ensure that their loved ones have a dignified departure,” Ng said.

The plan, which is available via e-wallet giant GCash, targets to give Filipinos an opportunity to set aside a portion of their resources to a fund that they can tap in case of death.

“It gives you the money immediately. We are advancing cash the moment you prove the death so that families have the money to arrange for all the different expenses,” Ng said.

While there are traditional pre-need plans available in the market, Ng said Singlife is banking on the convenience for Filipinos to buy plans digitally, tailor-fitted to an individual’s preferences and the quick release of cash coverage.

“More than 80 million are already on GCash and it makes the product so accessible, and because it’s digital, we can also provide meaningful coverage in an affordable manner,” Ng said.

The plan offers up to P300,000 cash benefit, with premiums as low as P440 per month and yearly coverage boost and payment duration for five or 10 years.

It aims to empower Filipinos to save progressively, allowing for seamless preparation for inevitable expenses.

Singlife Philippines is a mobile-first life insurance company founded to help the middle-income class segment save and protect their financial future.

In February 2020, it secured its license to operate from the Insurance Commission and started offering its products through GCash six months later.