Compare the Best Life Insurance in the Philippines!

What is life insurance?

Life insurance is a type of insurance that guarantees a sum of money will be paid to the insured or their beneficiaries when the insured meets an accident, suffers an injury, or dies. In exchange, the insured pays premiums for a certain period to enjoy insurance coverage. 

What is the best age to get life insurance in the Philippines?

While there’s no such thing as the right age to buy a policy, the policyholder’s age does matter when it comes to life insurance premiums. The best time to get life insurance is in your 20’s or 30’s or preferably when you’re under 35 years old when premiums are cheaper.

Your premiums can become more costly the longer you wait for the “right time” to buy life insurance. This is because life insurance products are generally age-banded and the risk for the insurance firm to pay out the benefits of a policyholder gets higher with each passing year.

What type of coverage should I expect from my life insurance?

• Personal Accident Benefits. A life insurance policy should cover accidental death or permanent injury which guarantees your family financial support after your death. 

• Critical Illness Benefits. Insurance providers also offer financial protection from deaths caused by various critical illnesses, which can sometimes include COVID-19. 

• Medical and Hospitalization Benefits. An ideal life insurance policy should also provide financial help for medical expenses and emergency hospitalization. 

• Investment Options. Aside from financial protection, look for insurance plans with an investment component. This allows you to maximize your insurance premiums by investing a portion of it in mutual funds. 

Do life insurance providers cover COVID-19 cases?

Yes, most insurance providers have now added COVID-19 coverage for most of their insurance products. Always check with your preferred provider for the complete benefits and exclusions. 

How much do I need to pay for life insurance?

Annual premiums for life insurance can range from ₱24,000 to ₱55,000 and even higher if you opt for supplementary benefits. On average, that is a monthly payment of  ₱3,300 (more or less ₱40,000 per year) you’ll have to pay over five to 30 years, depending on your chosen term.

Ensure that you have a steady source of income or continuous cash flow to make the payments on your premium. Even better, once you’ve decided to get life insurance, include your insurance payments as part of your monthly budget.

How will life insurance providers determine my premium?

• Age. The younger you are, the cheaper your premium will be. So while you’re still relatively young and healthy, you should consider getting life insurance. 
• Health Condition. When you apply for life insurance in the Philippines, you will need to undergo a medical exam and they will ask for your family’s medical history. Having a bad medical history increases your chances of experiencing complications as you get older, making it more expensive for you to get life insurance later on.
• Lifestyle. Are you into mountain hiking, diving, or car racing? Hobbies that are considered high-risk physical activities can drive your premiums up. At the same time, healthy habits such as exercising regularly and having a proper diet can help lower your insurance premiums.

How do I pay my life insurance premium?

Most insurance providers accept payments from the following payment channels: 

• Credit or debit card
• Auto-debit arrangements
• Online banking websites and apps
• Over-the-counter at banks and payment centers
• Post-dated checks

How often should I pay my life insurance premium?

Life insurance premiums are usually paid annually, although some insurance companies offer monthly plans which are more convenient for low-income earners. 

What are the types of life insurance?

• Term Insurance. This provides financial protection over a specific amount of time, usually ranging from one to ten years. Term insurance is the least expensive, making it ideal for low-income earners. One downside is that if you weren’t able to use your insurance within the insured time period, you probably won’t get your money back. 

• Whole Life Insurance.This provides financial protection with a lifetime coverage or until you reach a certain age, usually at 100 years old. Whole life insurance also comes with a savings component in the form of cash values and dividends. You can use the savings component to fund long-term goals like your retirement or your kid’s education. 

• Variable Universal Life Insurance (VUL). This provides financial protection combined with investment options. The accumulated cash value from your premiums will then be invested in balanced, bond, money market, or equity funds. VUL is an ideal insurance option if you want to kill two birds with one stone.  

How do I choose the right life insurance type?

Before getting a life insurance policy, you should consider all your options first. Since there are more than one type of life insurance in the Philippines, you should ask the following questions:

• What insurance coverage/s do I need?
• How long do I want to be insured?
• How much am I willing and can afford to pay in premiums?
• Do I want to have additional savings or investment options in my policy?

Why should I compare your life insurance option?

While it’s rather easy to find an insurance agent since they can be people close to you, it’s still important to do your own research when it comes to getting a life insurance policy. You should identify your insurance needs, talk to more than one insurance agent, and research more than one insurance provider and compare their features and benefits. 

What should I consider when choosing an insurance provider?

• License to Operate in the Philippines. In order to check if an insurance provider is legitimate, go to the Insurance Commission website and check out their list of licensed insurance firms.

• Solid Company Background. Another thing you should consider is the company’s track record. Look for an insurance firm with a good reputation in the industry, ideally for more than ten years. 

• Strong Financial Performance. To determine the financial strength of an insurance company, the Insurance Commission has set five criteria: 

• • Premium Income. This is the total amount a company receives from its clients’ premiums. It’s also a good indicator of a firm’s financial strength because a high premium income means it’s currently serving a lot of policyholders.

• • Assets. This includes all properties that are available to use for paying its debts. The number of assets a firm indicates its capability to manage its debt repayments. 

• • Net Worth. This is computed by subtracting all the company’s assets from all its liabilities. If an insurance company has a higher net worth, it means it can better withstand financial crises.

• • Net Income. This is computed by subtracting the firm’s total expenses from its total revenues. Net income reflects the actual income of the company. 

How do I make a life insurance claim?

It’s important to know who can file a life insurance claim. For death claims, the beneficiary of the insured should be the one to file the claim. For everything else, the policy owner or the person insured must be the one to file it. Here is the standard procedure when making a claim:

1. Prepare the necessary documents for filing a claim.
2. Fill up the necessary claim forms from your insurance provider.
3. Send all the documents and proof to your insurance provider.
4. Receive your proceeds through the approved payment channels.

What are the requirements for filing a life insurance claim?

To check the complete list of requirements for filing a claim, check with your insurance provider. But usually, these are the common requirements for each type of claim:

For personal accident:

• Copy of police report
• Copy of medical report or certificate from attending doctor
• Photo proof of full body or disabled body part

For medical expenses:

• Copy of medical report or certificate from attending doctor
• Copy of medical invoices and receipts
• Copy of laboratory procedure and results
• Copy of police or incident report
• Copy of hospital statement of accounts

For death:

• Copy of death certificate
• Copy of police report (if death is due to an accident)