PRIVATE INSURANCE COMPANIES

Private Insurance Companies are under the direct supervision and regulation of the
Office of the Insurance Commissioner and are authorized to conduct life or non-
life insurance business. The main types offered include life, fire, health and
accident insurance. Their assets, which are fairly diversified consist of policy
loans, real estate loans, stocks , mortgages, bonds, fixed deposits and collateral
loans. Whether a person obtains private or public insurance, their goals are usually
the same: to receive financial protection for various types of risk.
TOP 10 LIFE INSURANCE COMPANIES IN THE PHILIPPINES

 1 Sun Life Canada (Philippines) Inc.

 2 Pru Life Insurance Corporation of U.K.
 3 Philippine AXA Life Insurance
 4 Manufacturers Life Insurance Company (Philippines), Inc.
 5 BPI Philam Life Assurance Corporation Inc.
 6 BDO Life Insurance Company, Inc. (Generali Pilipinas Life)
 7 Philippine American Life and General Insurance Company
 8 FWD Life Insurance Corporation
 9 United Coconut Planters Life Assurance Corporation
 10 Insular Life Assurance Corporation

Many Filipinos still think that getting insurance is just an additional expense which
is not true. Life insurance Philippines is an important part of our financial health. It
is a protection against losses and an investment for future use (retirement). But this
thought is not fully understood by many. Getting life insurance could spare your
family from a financial dilemma when an uncertain event happens to you.
No matter how much money you have saved over the years, once an accident,
illness, or sudden death happens, it’ll easily wipe out everything you’ve
accumulated.
The Benefits of Getting Life Insurance Philippines
Pension for your Spouse: It is an amount of money that your spouse will receive
when you are gone. This will help him or her to go on living until the time they can
recover financially.

Education for Kids: This insurance benefit ensures the education of your kids
upon your untimely death.

Family: If you are the breadwinner in the family, you are the source of your
family’s income. If you’re gone insured, your dependents will receive an amount
of money from life insurance that will help them recover financially. Your
dependents could be your spouse, your children, parents, and relatives.

Debt Payments: The money that you’ll be receiving from your insurance company
can also help you pay out your debts.

End-of-Life Healthcare Cost: Hospital bills, medical expenses, and other related
healthcare costs are covered by life insurance.

Funeral Costs: Insurance companies offer pre-need plans for the funeral. In case
you do not have funeral plans, your insurance company will cover any funeral
costs.

Estate Tax Costs: Before the ownership of your assets can be transferred, you
have to pay the government’s estate tax. This could be expensive, but your family
shouldn’t worry too much about it because insurance companies can cover the
estate tax.

Savings: There are several insurance plans like the “whole-life policy,” which
offers long-term savings. Another kind of investment is the “variable universal life
insurance.”

Key Features of Life Insurance Philippines

Insurer
The insurer is the insurance company. They write the policy and receive the
premium. In addition, they keep the policy enforced as long as your premium is
paid. Also, they pay the sum insured to your beneficiaries as long as the conditions
are met.

Insured
The insured is the individual who is covered by insurance. When unexpected
things happen, and all the requirements are fulfilled, the insurer would pay your
beneficiaries.

Policy
The policy is the contract between you and your insurer. It contains a list of things
regarding your insurance coverage and your insurer’s duties, the insured amount,
payment of premium, steps in making a claim, and other important data.

Policyholder
A policyholder is someone who owns the policy. The policyholder must be at least
18 years old. You can be both the policyholder and the insured. There are instances
where a policyholder is not the same as the insured. For example, a parent buys
insurance for their child.

Beneficiaries
Beneficiaries are individuals who will receive the money from the insurer. Anyone
can be your beneficiary. These are some lists of your possible beneficiaries:

 spouse
 children
 family members
 descendants
 heirs
 guardians
 employers
 business partners

Sum Insured
The sum insured is the amount of money that your beneficiaries will receive when
untimely death happens to the insured.
There are insurance covers where the sum insured amount is based on the length of
the contract. But a policy with investment can have a higher sum insured
depending on the return of the investments.

Premium
Premium is the amount of money that you pay to the insurance company. This will
help the policyholder be insured and make the effectiveness of their policy remain.

There are flexible payment terms that you can choose from. You can pay annually,
semi-annually, quarterly, or monthly. You can pay either through banks or
payment centers.

Some factors could affect the amount of your premium. They are age, health,
profession, or even the place where you live.

Types of Life Insurance Philippines

Choosing the type of insurance that would suit your needs might be a bit confusing
to some. So, here are four (4) different types of Life Insurance. It is up to you to
decide what is the best insurance company in the Philippines.

Endowment

This type of insurance policy grants a lump sum of a certain amount of money
based on the specified time or upon death. The policy owner should pay a premium
for a predetermined number of years until they reach a specific age.

PROS:

 It allows saving up for a specific purpose like education or

retirement.
 It offers a guaranteed return upon maturity.
 It offers some form of insurance coverage.
CONS:
  It asks for a higher premium.
 It is not the best option for those who are looking for full life
protection.
Term
This is the simplest form of life insurance. The beneficiaries are paid upon the
death of the policyholder.

PROS:

 It requires a low amount of Premium.

 It is a strong option for policyholders who couldn’t afford the whole
life or endowment type of insurance.
 It is easy to understand
CONS:

 If the policyholder outlives the term period, there will be no benefits.

 The amount of premium usually gets higher every time the terms are
renewed.

Whole Life
This type of life insurance offers coverage for the policyholder’s entire life until
they reach 100 years old. It is both a protection and a savings mechanism. They
will put a portion of your premium to build up cash values.

PROS:

 It offers permanent protection for the policyholder’s entire life or 100

years.
 It offers flexible terms of payment of premium.
 It also has fixed premiums.
 It comes with additional features and ‘living’ benefits.
CONS:

 It comes with a higher premium.

 It can be harder to understand because of its complexities.
Variable Universal Life Insurance (VUL)
This type of insurance offers both life protection and investment in one package. A
portion of the premium is allocated to various investment vehicles. The earnings
depend on the performance of the selected investments.

PROS:

 It has a dual purpose, such as life insurance and investment.

 It doesn’t have a maturity age.
 The cash value a payable with the assured sum
 The death component is not limited to face value.
 Liquidity: you can access your fund in times of need. It could also
serve as your emergency funds.
CONS:

 The cash values and dividends are not guaranteed.

 The face amount and death benefit depending on the performance of
the investment.
 It includes more investment fees.

BTID (Buy Term, Invest Different)

It is the practice of buying term insurance and investing the difference in costs of
getting a VUL. You can make your investment strategy and pick from several
vehicles like mutual and index funds.

PROS:

 It asks for lower fees compared to universal life insurance and VUL.
 You can manage your investments.
 You can put your money in various mutual funds. You can also
withdraw them at any time.
 It offers higher investment returns.
CONS:

 Its price is higher for those who are planning for long-term coverage.
BTID premiums increase every five years.
 You have to split your money for your insurance and your investment
every single time.
  You need to know about insurance and investment.

Tips in Choosing the Best Life Insurance Provider

Do you want to know what is the best life insurance in the Philippines? You need
to look for some essential qualities from the best insurance provider in the
Philippines. Here are some qualities you can take into consideration:

1. Licensed to operate in the Philippines

To know if the company you are eyeing is legitimate, you can search them from
the list of licensed insurance firms provided by the Insurance Commission.

2. Company Background

Visit the website of the insurance company and research its background. You
would know if they are worth your trust by knowing if they are operating steadily
or growing steadily. Also, search if they have a good reputation in the insurance
industry.

3. Financial Performance
The Insurance Commission sets five categories. You can base your criteria on
comparing the financial performance of the insurance companies through the lists
provided.

a. Premium Income

It is the total amount a company receives from the clients’ premiums. A higher
premium income means that they serve a lot of policyholders.

b. Assets

It is the property that the company can use in paying its debts. The higher the asset,
the better their ability to manage their debt repayments.

c. Net Worth

It is the value of all the company’s assets minus its liabilities. If a company has a
high Net worth, they have a great ability to withstand financial crises.

d. Net Income

It is the company’s total revenues minus the company’s total expenses. The net
income reflects the actual income that the company earns.

e. New Business Annual Premium Equivalent

This is the sum of the total of the actual first year of regular premium plus 10% of
single premiums. The insurance commission usually uses this metric to measure
and compare insurance companies’ performance within the calendar year.

Quick Tips in Comparing Life Insurance Types

 The insurance coverage that you need

 How long do you want to be insured?
 How much are you willing to pay?
  Can you afford the premiums?
 Do you want insurance for protection? Or would you like to add
savings to your life insurance policy?

Tips in Comparing Life Insurance Policies

After choosing your insurance company and your preferred type of life insurance,
it is now time for you to choose your life insurance policy.

Here are some tips that would help you in choosing your life insurance policy:

 Insurance rates, quotes, and proposals: Ask for the insurance rates,
quotes, and proposals from your preferred insurance coverage.
Compare them from your chosen providers. Coverage, benefits, and
premiums may vary from different life insurance companies.
 Benefits. Check which primary and supplementary benefits are
suitable for your needs.

 Premiums: Compare the premiums by asking your advisor about the

price differences. Some policies for some coverages may have
different amounts of premium.

 Review the Fine print: Read the fine print thoroughly. Check for the
life insurance charges such as taxes, policy fees, and rider charges.
These fees will be deducted monthly from your total funds.
 Ask questions: If you do not understand anything about a certain
policy, ask your advisor questions. Discuss every toss and turn of the
policies with your advisor to prevent future issues from happening.

Filing A Life Insurance Claim

STEP 1: Requirements
The first thing to do is to know the required documents that you need to present.
The requirements differ from the type of claim and insurance companies.

Here are some lists of requirements:

Death Claims
  Official claimant form
 Policy number
 Death certificate of the insured
It should be issued by the Philippine Statistics Authority. If the death occurred
abroad, provide an authenticated death certificate from the Philippines embassy.

 Valid IDs

Other Types of Claims

 Claimant statement form
 Valid IDs
 Attending Physician Statement Document
 Hospital Bill Receipt (Medical Reimbursement)
 Police or Incident report (if caused by accident)
 Certified True Copy of Operating Room Record (It is for hospital
claims on operations or surgery-related issues)
 Complete medical records
Other Requirements:
 Marriage Certificate (If the spouse is the beneficiary)
 Birth Certificate of a child (If the child is the beneficiary)
 Affidavit of Legal Guardianship (If the beneficiary is a minor)
 Judicial Bond by the surviving parent or other legal guardian and
approved by the Regional Trial Court (If the share of the minor is
greater than PHP 500,000)
 Birth Certificate of the Insured (if the beneficiaries are the parents of
the policyholder)
 Joint Affidavit of Two Disinterested Persons (If there are
discrepancies in the names of the insured or beneficiaries)
 Police Investigation Report (for deaths caused by accidents)
 Autopsy Report
 Toxicology Report
STEP 2: Submit the Requirements
When you have completed all the required documents, you can submit them online
through the insurance company’s website. You can also hand the documents to
your financial advisor.
What if your claim is denied?
According to the Insurance Commission, you don’t have to go to court when your
claim is denied. They can hear out issues about the policies as long as the sum is
less than five (5) million pesos.

Conclusion
Getting life insurance is a wise financial decision you’ll make. But before you
decide to get one, first, you must know and understand the very purpose of life
insurance.

Once you understand life insurance’s purpose, you can now identify what type of
insurance you’ll need to get. You can choose from several companies that offer life
insurance plans. You can use the provided updated list of the top ten life insurance
firms in the country as your basis.

Compare and study their performances. However, the ranking of the firms varies
on the company’s annual performance. You can do personal research for further
knowledge about life insurance.