Many Filipinos tend not to discuss anything related to life insurance regarding topics related to financial freedom.
There is this constant notion that this is only for the rich and not for everyone. Indeed, it is a myth that needs to be debunked. However, the lack of interest from the target audience is already a handful.
This has become a lifelong struggle of most financial advisors. While some see them as only salespeople who are luring individuals to get policies, it is important to understand that it is not the main goal.
Ultimately, it is all about you and securing your future and an investment that will go a long way.
Before thinking about ditching the next financial advisor, you will meet, give it a chance and prepare yourself ahead through the pointers in this article.
What is life insurance?
Life insurance is the kind of security you want to have.
It is an agreement between you as the policyholder and an insurer that promises to pay your beneficiary a certain amount upon your death.
This is the basic idea of how life insurance works.
However, its benefits and key features vary depending on the type of insurance you will get. At the same time, you need to know that when it comes to this kind of insurance, the “younger you are, the better.”
It is because your premium contribution is dependent on your age. That means, if you start too old, then it is likely that you will be paying higher premiums than younger ones.
You can check several types of life insurance with your advisor, and some are available in the Philippines.
Types of Life Insurances in the Philippines
Variable Universal Life (VUL)
VUL is life insurance that is both life protection and investment.
It is practically the type of insurance you want to get if you are looking for a way to protect yourself and your loved ones while getting investment at the same time.
Generally, the process is for every premium you pay; a portion of that is allocated into investments and then the rest for your actual life insurance premium.
Here are some of its pros and cons.
- You are hitting two birds with one stone. After all, it is life insurance with investment.
- There is no maturity age, and there is always a cash value with a definite sum.
- The death amount is not limited to initial face value only.
- The total investment dividends are not always guaranteed.
- Depending on the insurance provider, the face amount and the death benefit are always subjective to the market.
- There are some other fees to pay.
- The amount of your investment tends to change every day.
This is the simplest out of all the insurances out there.
With this insurance, the nominated beneficiaries are paid the benefits upon your death. It is very straightforward - no other side notes.
- A simple policy with a low premium needed
- It is the best option for policyholders who need insurance but are not interested in paying for other fees.
- The policyholder does not get any benefits even after the term is done.
- Renewing the policy is always more expensive than the original policy.
In this kind of policy, the policyholder’s beneficiary is granted a lump sum amount upon death or after a certain number of years.
- It is a good way to save money for a college fund or retirement.
- There is a guaranteed sum upon maturity of the policy.
- Requires more expensive premium payment
- Is the least option to choose if you are looking for a full life policy
Whole Life Policy
Even if you think that living until 100 years old is impossible for you, it is best not to ditch the idea at all.
Consider exploring your chance with a whole life policy when you talk to your advisor. In this policy, you are given complete protection for basically the entire lifetime.
It offers both protection and savings because a part of your premium has cash values.
- It offers protection for up to 100 years old.
- It has fixed premiums with flexible payment options.
- Complex terms
- More expensive premiums than other types.
18 Life Insurance Providers in the Philippines
As part of your adult life, it is best to start investing for yourself and your family.
If you are still unsure of where to get your policy, here are 15 of the most known insurance companies in the Philippines today, in no particular order.
1. Sun Life
Also known as Sun Life of Canada (Philippines), this insurance company is famous for its wide range of financial products such as insurance, wealth, and asset management since 1985.
Among the other products they offer are financial services for education, estate preservation, health protection, income continuation, retirement, and even group life insurance.
2. Pru Life Insurance Corporation of UK
Pru Life was founded in 1848, with almost at least one headquarters across the world.
They are best known for their life insurance products as well as health and protection services. Moreover, they topped the most recent New Business Annual Premium Equivalent (NBAPE) valued at P7,950,610,172.
They outranked 30 other listed life insurance companies in the country.
3. Philippine AXA Life Insurance, Corp.
AXA is founded in 1962 and has been a major player in the insurance industry.
They also have a wide range of products - educational, health, income protection, and investments.
4. Philippine American Life and General Insurance Company, Inc. (Philamlife)
For most Filipinos, Philamlife is also an established insurance provider in the country.
It is founded in 1947 and specializes in life insurance and investment products. Some of these are protection, health and accident, savings, education, and investment plans.
Moreover, they also have wellness programs and financial plans available for those interested individuals.
5. FWD Life Insurance Corporation
FWD Insurance or FWD Life is one of the fastest-growing insurance firms in the country.
Launched in 2014, this company is considered still new but has the highest paid-up capital today.
Aside from this, FWD allows its customers to manage any insurance policies using their app called Tapp.
As for its products and services, this company is not a newbie. Some of the products they are known for are life, health, and investment products.
Moreover, its most unique offering is a life insurance plan that offers financial protection against terrorist acts.
6. Manulife Philippines
Manulife stands for Manufacturers Life Insurance Company Philippines, Inc.
It is a financial company best known for offering pension and education, investment, medical, and employee security.
Moreover, it offers corporate, student personal accident, credit life, and other insurance plans which other companies do not.
7. Allianz PNB Life Insurance, Inc.
Like other banks in the country, the Allianz Group offers great investment products through the Philippine National Bank.
The partnership started in 2001 and is now a globally recognized brand in the financial services sector, servicing 90 million retail and corporate clients across 70 countries.
8. BDO Life Assce. Co., lnc. (Generali Pilipinas Life)
Over the years, you may have heard about the insurance provider Generali Pilipinas.
It is also one of the leading insurance firms in the country, acquired by BDO Unibank Inc. in 2016, and is currently listed as one of its operating subsidiaries.
9. BPI-Philam Life Assurance Corporation
The BPI-Philamlife firm is established in 1933 under the former Ayala Life Assurance Incorporated.
Since then, it operates as a subsidiary of Philam Life and General Insurance Company, Inc., offering various financial products such as savings, investment, educational fund, retirement, personal accident, motor insurance, income protection, and others.
10. Insular Life Assurance Company, Ltd.
Insular is founded in 1910 and has been known in the country for offering saving plans for education and retirement and accident, health, disability, payer’s protection plans, and investment plans for Filipinos.
11. United Coconut Planters Life Assurance Corporation
The UCPB Life Assurance Corp was founded in 1966.
It specializes in life insurance underwriting and offers other financial services for non-life, healthcare, and mutual fund products.
12. Caritas Life Insurance Corporation
Caritas Life Insurance Corporation or CLIC was established in 2003 but was officially allowed to operate as an insurance company last 2004.
They currently offer life insurance known as Heart Shield 5 as well as group and personal accident insurance.
13. Fortune Life
Founded on December 8, 1984, Fortune Life is another known life insurance firm in the country. They are best known for offering personal, group, worksite, and migrant workers insurance.
14. Paramount Life and General Insurance
Paramount was established in 1950 by Daniel Go. It started as a non-life insurance business, but its strong market presence paved the way for them to offer life insurance and other insurance types.
Today, they still offer different products and services focusing on the life and non-life products and healthcare packages.
Cocolife is another insurance company in the country that offers healthcare, life insurance, group insurance, and mutual funds.
16. Pacific Cross Life Insurance
Pacific Cross Life Insurance is one of the leading life insurance companies in the Philippines that offers a wide range of life insurance products to meet the varying needs of its clients.
With its strong focus on customer satisfaction and innovative solutions, Pacific Cross Life Insurance is committed to providing its clients with the best life insurance coverage.
One of the standout products offered by Pacific Cross Life Insurance is its whole life insurance policy. This policy provides lifetime protection to the policyholder and acts as a source of savings and investment.
With flexible payment options and an affordable premium rate, Pacific Cross Life Insurance's whole life insurance policy is popular among Filipinos.
17. FPG Insurance
FPG Insurance is another leading life insurance company in the Philippines that provides comprehensive life insurance coverage to its clients. With over 80 years of experience in the industry, it is a trusted and reliable source of life insurance products.
One of the key products offered by FPG Insurance is its term life insurance policy. This policy provides coverage for a specified term and is ideal for people seeking low-cost insurance.
FPG Insurance's term life insurance policy is highly customizable, allowing clients to choose the coverage amount, term length, and premium rate that best fits their needs.
18. Prudential Guarantee & Assurance, Inc.
Prudential Guarantee & Assurance, Inc. is one of the largest insurance companies in the Philippines. It provides a range of insurance products, such as life insurance, health insurance, and investment-linked insurance.
Some of their popular life insurance products include term life insurance, whole life insurance, and endowment plans. They also offer a range of additional benefits, such as accidental death, critical illness, and total and permanent disability coverage.
To sum everything up, getting life insurance is always a matter of choice.
No one can force you to do so unless you decide to get one for yourself. The key here is to understand first that this is an important thing for you and your loved ones.
Investing your money in something that will give you more benefits in the long run is always a wise choice. It is just a matter of how well you accept that fact.
So, if you are looking for a piece of unsolicited advice? Then, go and get life insurance as early as now.
After all, it is also one way to take towards your financial independence. It is like making decisions for your business or other investment you want to try. Do not be afraid and reach for greater heights.
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