life insurance vs. ant expenses

Ant expenses can quickly get out of control, between buying a coffee every day, which represents between 50 to 80 pesos a day (1,500 and 2,000 pesos approximately per month), hiring streaming services that they don’t always use, wanting to listen to music without commercials And the list could go on.

If we were to write down every expense we make, we would realize that around 50% of our list could be saved and allocate that resource to protect our future with a financial instrument such as insurance.

“Millennials are a generation that has been hit hard by financial instruments. They do not have mortgage loans or savings accounts. That ends up making them spend immediately and not contemplating necessary and important investments, such as life insurance. Especially since in Mexico there is the idea that this type of insurance is expensive, not very accessible and full of paperwork and cumbersome processes. But the reality is that this is no longer the case”, explains Sebastián Villarreal, CEO of Super mx, a platform that facilitates online insurance quotes and contracting.

According to the platform, digital insurances are financial tools that are easy to contract and with affordable prices. Today there are digital insurances on the market with payment plans that start at 150 pesos per month, that is, cheaper than an insurance service. streaming.

financial education

According to specialists, in Mexico, the penetration of life insurance is increasing; however, most users are concentrated in large cities such as Mexico City and the metropolitan area, Monterrey and Guadalajara.

“This is due to the fact that, in general, the population in urban areas has more information and access to education. Although an organization of expenses is required when contracting almost any financial service, life insurance does not have to be another debt. They are accessible and the benefits they bring to families are enormous”, added the CEO of Super MX.

According to records from the National Survey of Financial Inclusion (ENIF) of the National Institute of Statistics and Geography (INEGI), only 25% of the adult Mexican population has some type of formal financial education. The lack of penetration of life insurance in Mexico can be partly explained by structural problems to plan budgets, prevent eventualities and save for retirement.

Benefits

According to figures from the Ministry of Finance, in Mexico the penetration of life insurance is 1.1% of the national GDP in terms of private products and 3.5% considering the IMSS and ISSSTE. These figures contrast with the average of the member countries of the Organization for Economic Cooperation and Development (OECD), in which it reaches 9.3 percent.

It should be noted that to the extent that disruptive companies in the insurance industry have opened up the range of offers, many of the prejudices that exist about life insurance have been forgotten, one of them being the price.

According to information from Super mx, among the main challenges for contracting life insurance in the country is the belief that they are extremely expensive products, not very necessary and that the experience with insurers is not always good.

“Currently, in addition to the diversity of prices and coverage, the contracting processes are much simpler today, particularly when it comes to digital companies that have paid particular attention to the user experience and the flexibility of procedures. A person can have insurance in less than four days or even in one, if they meet the requirements of the insured”, they indicate.

It should be noted that life insurance does not only work in case of death. It is a savings instrument that gives significant returns, can even provide coverage in the event of disability, pays little by little for a person’s old age and retirement planning, and provides peace and tranquility so that a family can develop. All this for the same price that it costs to watch television series and movies.

alba.servin@eleconomista.mx