Published: May 9, 2019 | Updated: October 9, 2020 | Posted by: Venus Zoleta | Personal Finance
So, you’ve decided to get a life insurance plan. As a breadwinner, being insured means sparing your loved ones from financial burden when something unexpected happens. Even if you’ve accumulated wealth, it’ll be quickly wiped out by an accident, permanent disability, or death. And so, it makes sense to start looking for the best life insurance.
Before you sign up for a policy, it’s best to compare life insurance options, much like comparing credit cards and other financial products. You’ll be spending your hard-earned money for insurance, so you’ve got to be sure that your choice will be worth paying for.
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In the Philippines, you’re typically approached by an insurance agent who happens to be your relative, friend, or colleague. Nothing wrong with that—it’s good to know your options from someone you know and trust.
However, it also pays to do your own legwork. Identify your life insurance needs, actively shop around, compare your choices, and assess the results before you pick a policy.
Your ultimate goal is to find a policy that meets your needs and budget, specifically one with the most coverage at the least possible cost. Narrow down your choices by comparing insurance companies, insurance types, and insurance policies.
Make sure that the insurance company you’ll choose won’t likely to fold in five to 10 years. Look for these essential qualities when comparing life insurance providers:
Here’s the Insurance Commission’s latest ranking of life insurance companies in the Philippines, based on premium income, assets, net worth, net income, and new business annual premium equivalent.
|Life Insurance Companies||Premium Income in 2019|
|Sun Life of Canada (Philippines), Inc.||PHP 39,513,806,284|
|PRU Life Insurance Corporation of U.K.||PHP 26,965,125,719|
|Philippine Axa Life Insurance Corporation||PHP 26,236,763,146|
|Manufacturers Life Insurance Co.(Phils.), Inc.||PHP 18,346,405,023|
|BPI-Philam Life Assurance Corporation||PHP 17,236,004,380|
|Philippine American Life & Gen. Ins. Co. (life unit )||PHP 16,636,434,473|
|BDO Life Assurance Company, Inc.||PHP 14,875,396,349|
|Insular Life Assurance Company, Limited||PHP 12,674,304,438|
|FWD Life Insurance Corporation||PHP 9,521,266,364|
|Allianz PNB Life Insurance, Inc.||PHP 9,444,335,690|
|Life Insurance Companies||Total Assets in 2019|
|Philippine American Life & Gen. Ins. Co. (life unit )||PHP 290,159,607,279|
|Sun Life of Canada (Philippines), Inc||PHP 254,515,246,721|
|Insular Life Assurance Company, Limited||133,015,929,505|
|Philippine Axa Life Insurance Corporation||127,551,783,462|
|Manufacturers Life Insurance Co.(Phils.), Inc.||114,899,552,272|
|BPI-Philam Life Assurance Corporation||108,825,947,777|
|PRU Life Insurance Corporation of U.K.||106,222,905,282|
|BDO Life Assurance Company, Inc.||56,516,354,142|
|Sun Life GREPA Financial, Inc.||47,877,407,168|
|Manulife Chinabank Life Assurance Corporation||39,335,482,553|
|Life Insurance Companies||Net Worth in 2019|
|Philippine American Life & Gen. Ins. Co. (life unit )||PHP 87,684,334,099|
|Sun Life of Canada (Philippines), Inc.||PHP 38,002,386,250|
|Insular Life Assurance Company, Limited||PHP 33,572,950,760|
|Manufacturers Life Insurance Co.(Phils.), Inc.||PHP 16,141,908,184|
|BDO Life Assurance Company, Inc.||PHP 9,007,078,835|
|Philippine Axa Life Insurance Corporation||PHP 8,285,050,497|
|BPI-Philam Life Assurance Corporation||PHP 7,940,134,280|
|United Coconut Planters Life Assurance Corp||PHP 4,970,389,867|
|PRU Life Insurance Corporation of U.K.||PHP 4,642,466,688|
|Sun Life GREPA Financial, Inc.||PHP 4,573,781,673|
|Life Insurance Companies||Net Income in 2019|
|Sun Life of Canada (Philippines), Inc||PHP 8,210,981,224|
|Philippine American Life & Gen. Ins. Co. (life unit )||PHP 7,665,044,618|
|PRU Life Insurance Corporation of U.K.||PHP 4,395,140,002|
|Philippine Axa Life Insurance Corporation||PHP 3,388,641,553|
|Insular Life Assurance Company, Limited||PHP 2,940,203,812|
|Manufacturers Life Insurance Co.(Phils.), Inc.||PHP 2,787,913,240|
|BDO Life Assurance Company, Inc.||PHP 2,225,365,775|
|BPI-Philam Life Assurance Corporation||PHP 1,175,442,370|
|Sun Life GREPA Financial, Inc.||PHP 845,855,710|
|United Coconut Planters Life Assurance Corp||PHP 719,536,317|
|Life Insurance Companies||NBAPE in 2019|
|Sun Life of Canada (Philippines), Inc||PHP 9,613,968,994|
|PRU Life Insurance Corporation of U.K||PHP 7,670,306,621|
|Philippine Axa Life Insurance Corporation||PHP 5,497,228,940|
|Manufacturers Life Insurance Co.(Phils.), Inc., The||PHP 4,358,045,029|
|BPI-Philam Life Assurance Corporation||PHP 3,903,271,770|
|BDO Life Assurance Company, Inc.||PHP 3,676,916,026|
|Philippine American Life & Gen. Ins. Co. (life unit )||PHP 3,475,138,508|
|FWD Life Insurance Corporation||PHP 2,936,592,061|
|United Coconut Planters Life Assurance Corp||PHP 2,175,946,553|
|Insular Life Assurance Company, Limited, The||PHP 1,913,216,661|
What insurance type should you buy? This is a major decision you have to make before you get insurance. So it’s important to compare the different types of insurance in the Philippines.
To choose the right insurance type for you, know exactly what you want in an insurance plan:
After considering all those factors, determine which life insurance type suits your needs best.
Term insurance provides protection over a specific time frame, ranging from 1 to over 10 years. Death benefits are paid to survivors if the insured’s death occurs within the policy period. If you outlive the term period, your coverage ends and you’ll get nothing back.
Being a pure form of insurance, term insurance has no savings component, making it the least expensive insurance type. Term life insurance is ideal for low-income earners who cannot afford whole life insurance and want maximized protection at a minimal cost.
Unlike term insurance, whole life insurance provides protection for your entire life or until you’re 100. Besides death benefits, it also has a savings component in the form of cash values and dividends, which you can get while you’re still alive to fund your retirement or your child’s college education.
This insurance type combines whole life insurance and investment. Death benefits are paid to survivors anytime the insured dies. Its accumulated cash value is invested in balanced, bond, money market, or equity funds. Thus, VULs are ideal for long-term investment and insurance needs.
Unlike the other health insurance types, this one is a little bit more special. Similar to an e-voucher, you get a one-time visit to selected medical facilities and can avail of certain treatments depending on the card you pick.
In general, there are three types of prepaid cards covering the following:
It is the more affordable and flexible option compared to the regular health insurance, but it covers fewer services and normally expires after one year.
Once you’ve chosen your top insurance companies and the right insurance type, it’s time to compare insurance policies. Here are several tips to help you pick the best life insurance policy:
Before you apply for a life insurance plan, make sure you compare insurance companies, insurance types, and insurance policies first. Go with the insurance policy that’s consistent with your life goals and offers the best overall value for your money.