Real-life Example: Don Pablo and His Family’s Experience
Don Pablo, a middle-class family man, worked for an employer that provided him with comprehensive medical insurance for himself, his wife, and their children. When his wife was diagnosed with breast cancer a few months after joining the company, Don Pablo was relieved not only about her health but also about the financial burden that medical expenses could bring. The insurance coverage made a significant difference during this challenging time.
After retiring from the same company, Don Pablo continued to receive the insurance benefits. Due to his advanced age, he spent his final days in intensive care at a private hospital. His family visited daily, and they noticed other families in the waiting room, worried about their loved ones’ health but not facing financial hardship.
One day in the intensive care waiting room, a woman shared her story about another patient’s parent who had been in intensive care for two weeks. They had already sold a house in Tlaxcala to cover the medical expenses and were on the verge of selling another property. When asked how they managed to pay, the woman learned that the patient’s uncle had a life insurance policy covering the costs.
Promoting Insurance Culture
Last week, the 34th Insurers Convention took place, emphasizing the importance of extending insurance culture in Mexico. With nearly 130 million inhabitants, only 13 million have medical insurance for major expenses, and three out of ten vehicles have third-party damage coverage.
Pedro Pacheco, President of the Mexican Association of Insurance Institutions (AMIS), reflected on the high cost of not having insurance: “I’ve been asked if insurance is expensive. I tell them, ‘I believe the most expensive thing is not having an insurance policy.'”
Pacheco explained that credit growth has been the primary driver of financial inclusion advancement. However, insurance companies play a crucial role because car insurance remains valid during the loan period. Once the loan is paid off, it becomes even more essential to renew the policy since it now forms part of one’s assets.
Pacheco provided additional examples: “If a family member is studying, and the parent passes away, the goal is to ensure that the student can continue their education without having to stop or even work to support the family due to the life insurance.”
In cases of car theft, “you’ve built wealth, and your car gets stolen without proper insurance coverage. It’s like hitting reverse and starting over to save money for another car.”
Regarding medical expenses, Pacheco stated, “An expensive or long-term illness can quickly deplete one’s assets.”
Customized Policies
AMIS President Pedro Pacheco emphasized that insurance companies offer diverse products, particularly for medical expense coverage. He advised choosing a policy that fits one’s financial situation, as this type of insurance should be maintained for life.
Pacheco previewed upcoming developments in insurance products for adults and older adults, focusing on the middle class with national coverage, access to specific hospitals, and long-term vision.
Individuals requiring international coverage can either maintain their current policy or transition to a more tailored product based on their specific situation.
Catastrophic Insurance
During the discussion, Consejo Coordinador Empresarial President Francisco Cervantes acknowledged that whenever a natural disaster strikes Mexico, such as an earthquake or hurricane, “insurance companies are often the first to respond.”
- Key Questions and Answers:
- Q: Why is insurance crucial? A: Insurance protects your assets and provides financial security during unforeseen events.
- Q: How does credit growth impact insurance? A: Credit growth drives financial inclusion, making insurance more accessible to the population.
- Q: What types of insurance should one consider? A: Depending on your situation, consider medical, auto, home, and life insurance policies.
- Q: How can insurance help during long-term illnesses? A: Medical expense coverage ensures financial stability during prolonged or expensive treatments.
- Q: What should one look for in a customized insurance policy? A: Choose a policy that aligns with your financial situation and long-term needs.
