What Is Life Insurance?

New to buying life insurance? Learn how it works and what you need to understand to choose
your coverage.

A life insurance policy is a contract with an insurance company. In exchange for premium
payments, the insurance company provides a lump-sum payment, known as a death benefit, to
beneficiaries upon the insured's death.

Typically, life insurance is chosen based on the needs and goals of the owner. Term life insurance
generally provides protection for a set period of time, while permanent insurance, such as whole
and universal life, provides lifetime coverage. It's important to note that death benefits from all
types of life insurance are generally income tax-free.1

There are many varieties of life insurance. Some of the more common types are discussed below.

Term life insurance

Term life insurance is designed to provide financial protection for a specific period of time, such
as 10 or 20 years. With traditional term insurance, the premium payment amount stays the same
for the coverage period you select. After that period, policies may offer continued coverage, usually
at a substantially higher premium payment rate. Term life insurance is generally less expensive
than permanent life insurance.

Needs it helps meet: Term life insurance proceeds can be used to replace lost potential income
during working years. This can provide a safety net for your beneficiaries and can also help ensure
the family's financial goals will still be met—goals like paying off a mortgage, keeping a business
running, and paying for college.

It's important to note that, although term life can be used to replace lost potential income, life
insurance benefits are paid at one time in a lump sum, not in regular payments like paychecks.

Universal life insurance

Universal life insurance is a type of permanent life insurance designed to provide lifetime coverage.
Unlike whole life insurance, universal life insurance policies are flexible and may allow you to raise
or lower your premium payment or coverage amounts throughout your lifetime. Additionally, due
to its lifetime coverage, universal life typically has higher premium payments than term.

Needs it helps meet: Universal life insurance is most often used as part of a flexible estate planning
strategy to help preserve wealth to be transferred to beneficiaries. Another common use is long
term income replacement, where the need extends beyond working years. Some universal life
insurance product designs focus on providing both death benefit coverage and building cash value
while others focus on providing guaranteed death benefit coverage.

Whole life insurance

Whole life insurance is a type of permanent life insurance designed to provide lifetime coverage.
Because of the lifetime coverage period, whole life usually has higher premium payments than
term life. Policy premium payments are typically fixed, and, unlike term, whole life has a cash
value, which functions as a savings component and may accumulate tax-deferred over time.

Needs it helps meet: Whole life can be used as an estate planning tool to help preserve the wealth
you plan to transfer to your beneficiaries.

Comparing Types of Life Insurance

Term Life Universal Life Insurance Whole Life

 Insurance Insurance
Wealth transfer, income protection Wealth transfer, preservation
Needs it helps Income replacement during
and some designs focus on tax- and, tax-deferred wealth
meet working years
deferred wealth accumulation accumulation
Designed for a specific period
Protection period Flexible; generally, for a lifetime For a lifetime
(usually a number of years)
Typically less expensive than Generally more expensive
Cost differences Generally more expensive than term
permanent than term
Premiums Typically fixed Flexible Typically fixed
Proceeds paid to Yes, generally income tax-
Yes, generally income tax-free Yes, generally income tax-free
beneficiaries free
Investment 2
No No No
options
May help build
No Yes Yes
equity
Yes, Universal Life Insurance, No, traditional Whole Life
Available Yes, Fidelity Term Life
3 primarily focused on death benefit Insurance is not currently
through Fidelity Insurance
protection offered

How cost is determined

Insurers use rate classes, or risk-related categories, to determine your premium payments; these
categories don't, however, affect the length or amount of coverage.

Your rate class is determined by a number of factors, including overall health, family medical
history and your lifestyle. Tobacco use, for example, would increase risk and, therefore cause your
premium payment to be higher than that of someone who doesn't use tobacco.

FWD is breathing life back into the insurance business by offering products that speak to the
needs of different people across different lifestyles. Whether it’s for life protection or for
building wealth, we’re here to enable you to do more today and fear less about the future. To
stop hesitating and start doing more of the things that excites you. We’re here to change the way
you feel about insurance by helping you grab the things you want out of life.

 Company Background

Putting customers in the forefront

From Hong Kong and Macau, Thailand, Indonesia, Singapore, Vietnam, and Japan, FWD
is breathing new life into the insurance industry especially in the Philippines where they
continue to expand their product offerings ranging from premium life insurance to wealth
and financial planning services. FWD is focused on creating fresh customer experiences
with easy-to-understand products, supported by leading digital technologies. Through this
customer-led approach, FWD will achieve its vision to become the leading pan-Asian
insurer that changes the way people feel about insurance.

 Strong Financial Position

On course towards becoming a leading pan-Asian life insurer

FWD Life Insurance Corporation (“FWD Life”) is the first life insurance company licensed by the
Insurance Commission of the Philippines under the new Insurance Code. FWD launched its
commercial operations in September 2014. Based on premium income data published by the
Insurance Commission, FWD Life ranks 10th in the insurance industry in terms of weighted new
business premiums. By March 2017, FWD Life is the highest-capitalized life insurer in the
Philippines with PhP 2.3 billion in paid-up capitalization.
  About Pacific Century Group

Pacific Century Group (PCG) is an Asia-based private investment group established in

1993 with interests across three core business pillars; Technology, Media &
Telecommunications (TMT), Financial Services, and Property.

PCG has demonstrated a strong track record of successful investing, and has a long-term
sustainable network in Asia and across its core business pillars.

Purchase Peace online and be protected in less than 5 minutes!

Peace is FWD Life Insurance Philippines’ first digital insurance product that offers financial
peace of mind against acts of terror. Buy now so you and your loved ones can live worry-free.

Benefits at a glance

 Your choice of an affordable plan

Personal Peace insures you for a whole year for only PHP 2,000 and Family Peace
insures you and your family for only PHP 3,000. Plus, you have an option to renew every
year.

 Get ₱1 Million coverage per insured

With Personal Peace, cover yourself for PHP 1 Million for death or disability due to acts
of terror. With Family Peace, insure you and your whole family (yourself, legal spouse,
and children below 18 years of age) for PHP 1 Million each.

Learn more about coverage information.

 Buy online in minutes

No medical tests, no additional documents required, and your choice of payment method
(Credit/Debit cards and Over-the-Counter). It can’t get any easier.

 Protection anywhere in the world

Wherever you are, here or abroad, you are protected.

 Guaranteed approval

As long as you’re a Filipino Citizen of legal age or a Philippine resident of at least 6

months, you’re approved.

4. Fight Plan

Let's fight the Big C together!

Cancer is one of the most common serious illnesses in the Philippines and one of the leading
causes of death. Fight Plan gives you the confidence to fight your way out of costly cancer
treatments, so you can focus on regaining your strength.
Tell me more

In fighting the Big C, let us take care of money matters so you can take care of what really
matters – getting better and stronger. FWD stays with you and helps you pick yourself up even
when life takes a downturn because you are covered from all types of cancer for 15 years at any
stage.

If the cancer is at the early stage, FWD will give you 20% of the benefit amount with the
remainder of the benefit still available to you should the cancer progress or you are diagnosed
with another cancer.

If the cancer has progressed beyond the early, non-threatening stage, you will receive the full
benefit amount, guaranteed.

So... What does it do?

 Financial protection up to P2 Million

- Lets you get the treatments you need. You receive the full benefit amount depending on
how far the cancer has progressed.

 Affordable, easy-to-pay options

- Choose to pay for five (5) or 10 years for as low as P6,000* per year (Minimum
premium for 10 years).

 Coverage from all types of cancer for 15 years

- Financial support and protection upon diagnosis of any type of cancer at any stage.

 Quick and easy application

- We only ask questions about you, and not about your family history, hereditary diseases
and the like.

But wait, there's more

 FWD will pay up to the full benefit amount, depending on how far the cancer has progressed.
 If the cancer has progressed beyond the early, non-threatening stage, you will receive the full
benefit amount, guaranteed.
 If the cancer is at the early stage where treatment costs are typically lower, FWD Life will give
you 20% of the benefit amount with the remainder of the benefit still available to you should
the cancer progress or you are diagnosed with another cancer.

Go to greater heights with the most comprehensive coverage against critical illnesses

Tell me more

FWD's Set for Health is a plan that stays with you in good times and in bad. It can help you ease
the financial effects of serious illnesses by allowing you to focus on what really matters—getting
well.

So... What does it do?

 Comprehensive plan with flexible terms - Set For Health plan covers you up to age 75,
with our flexible payment terms that give you the choice and convenience of 5-year, 10-
year, or 20-year options.
  Major Critical Illness Benefits - Finally, you've got a plan that doesn't just stop when
you make a claim for critical illness. Set for Health plan allows you to claim up to 3 times
for unrelated critical illnesses.

 Waiver of Premium Benefit - If you get diagnosed with your first medical critical
illness, we're waiving future premium payments so you don't have to worry about paying
for your plan during recovery so you can focus on what matters most --being well again.

 Minor Critical Illness Benefit

- Set for Health plan also covers 15 minor critical illnesses. While they're minor, they can
still be a financial burden. So, we're giving you 20% of your plan's coverage amount to
help you with smaller medical expenses.

 Death Benefit
- In case the unfortunate happens before you turn 75, FWD will look after your family by
giving them 100% of your plan's coverage amount so they can be financially worry-free..

 Healthy Life Benefit - And best of all, get awarded for living healthy! When you reach
75, free from any major critical illness, you get 100% of all your premium payments
back.

And best of all..

With HEALTHY LIFE BENEFIT - Get rewarded with 100% of all your premium payments back by just
staying healthy until age 75.