What is the Best Life Insurance in the Philippines?
Published: May 9, 2019 | Updated: December 16, 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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Why Compare Life Insurance?
Photo by InvestmentZen via Flickr, Creative Commons
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.
How to Choose the Best Life Insurance
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:
- Licensed to operate in the Philippines – Check the Insurance Commission’s list of licensed insurance firms[1] to see if the companies you’re considering are legitimate.
- Solid company background – If an insurance firm has been operating steadily for a long time with a good reputation in the industry, then you know it’s worth trusting. Visit the website of insurance providers to check their company background.
- Strong financial performance – The best life insurance firms perform well based on the five criteria set by the Insurance Commission:
- Premium income – Premium income is the total amount a company receives from its clients’ premiums. It’s also a good indicator of an insurance firm’s financial strength, as a higher premium income means it serves a lot of policyholders.
- Assets – An insurance company’s assets include all its properties that are available to use for paying its debts. The higher a firm’s assets, the better it can manage its debt repayments.
- Net worth – Net worth is the value of all the company’s assets minus all its liabilities. So an insurance firm with a higher net worth can better withstand financial crises, as it has enough assets to enable its business to operate amid losses.
- Net income – The net income is computed by deducting a company’s total expenses from its total revenues. This financial performance indicator is different from the premium income, as the net income reflects the actual income that the company is earning from its business.
- New business annual premium equivalent – The Insurance Commission uses this metric[2] to measure and compare life insurance revenue of insurance companies’ newly issued policies within the calendar year. It’s the sum of the total of actual first year (regular) premiums plus 10% of single premiums.
Best Life Insurance Companies in the Philippines
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.
Best Life Insurance Companies Based on Premium Income
| 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 |
Best Life Insurance Companies Based on Assets
| 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 |
Best Life Insurance Companies Based on Net Worth
| 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 |
Best Life Insurance Companies Based on Net Income
| 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 |
Best Life Insurance Companies Based on New Business Annual Premium Equivalent
| 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 |
Comparing Life Insurance Types
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:
- The insurance coverage you need
- How long you want to be insured
- How much you’re willing and can afford to pay in premiums
- Whether you just want protection or you’d like to add savings to your insurance policy
After considering all those factors, determine which life insurance type suits your needs best.
Term Insurance
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.
Whole Life Insurance
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.
Variable universal life insurance (VUL)
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.
Read more: What is VUL Insurance and Should You Get One?
Prepaid Health Cards
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:
- Emergency care
- Hospitalization
- Preventive care
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.
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Tips on Comparing Life Insurance Policies
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:
- Ask for life insurance rates, quotes, or proposals for your preferred insurance coverage from two or three providers of your choice. For the same coverage, benefits and premiums may vary among insurance companies.
- Compare benefits and riders. Evaluate which primary and supplementary benefits are suitable for your insurance needs and which ones you can do without. For example, decide whether you want to include critical illness benefits in your life insurance plan.
- Compare premiums. For the same coverage, some policies are more expensive than others. For example, a policy may have a higher premium because it’s designed for a higher retirement fund. Ask your insurance advisor about the reasons for the price differences.
- Thoroughly review the fine print. Check the life insurance charges and fees—such as taxes, policy fees, and rider charges—that will be deducted monthly from your total funds.
- Ask a lot of questions. Discuss each policy feature with your insurance advisor. If you don’t understand anything, ask questions. Probe into what would happen in different scenarios in the future. It’s better that you get all bases covered rather than regret your decision in the end.
Final Thoughts
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.
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