BASIC LIFE

INSURANCE PLANS

BASIC LIFE INSURANCE PLANS

 It is an accepted notion that insurance need is universal, but not
every individual would have similar need for protection or for saving
and or for retirement fund. For this reason, BF Life devised life
insurance policy contracts, which tie together these three (3) services
in proportions, except term, which provide protection only. You must
therefore be specific in the needs of your prospects.

There are three (3) classifications of life insurance policies:

1. WHOLE LIFE

2. ENDOWNMENT

3. TERMS

As we shall see later on, all life insurance policies basically

evolved from a whole life policy. They differ in one or more of three
modifications of the whole life policy:

1. The period of protection or effectivity of contract

(For how long will insured be covered by his policy?)

2. The period in which premiums are to be paid

(For how long will the premium be paid?)

3. The time proceeds will be paid for the endownment element is

eliminated.
(When can the benefit be availed of?)

A. CLASSIFICATION OF POLICIES
 1. THE WHOLE LIFE PLANS

In general, whole life plans emphasize protection more

than savings or retirement income. Since policies protect the
insured up to age 96, the maturity benefit of endownment is paid
to the policyholder himself upon attaining age 96. But since only
a few policyholders actually reach 96 therefore almost all cases,
if the company pays any benefit to a whole life policyholder, it is
invariably in the form of death benefit paid to the beneficiary of
the insured.

However, since whole life plan accumulate cash values, the

policyholder may also avail of some benefits by borrowing the
cash values in case of emergencies or by surrendering the policy
for its cash value to be used as retirement income (these are the
living benefit of the Whole Life Plans).

WHOLE LIFE

………………………………………………………………………………………
Protection Period *
………………………………………………………………………………………
Premium Paying Period **
………………………………………………………………………………………
Death Benefit ***
………………………………………………………………………………………
Issue Date Age
96
Maturity
Benefit

* Covers the insured from the date it is issued until he/she

reaches age 96 or until his/her death before attaining age
96.

** Premiums are payable from the date of issue until age 96

or until death of insured before reaching age 96.

*** Proceeds are payable to the beneficiaries upon the death

of the insured prior to age 96 or to the insured himself (as
a maturity benefit) if he reaches age 96.