In the Philippines back in the 1970s up to the 90s, when it came to getting a life insurance policy, Filipinos viewed it as fatalistic and a liability because they refused to talk about accidents or death in the family, even in the future tense. Fast forward to today, and this misconception is quickly changing due to advances in communications technology. Filipinos are gradually opening up to the realities of being financially ready when a disaster should strike the family. How far has life insurance advanced in the Philippines? According to the Insurance Commission of the Philippines, around 52% of Filipinos, based on the 2020 population census, have signed up for life insurance. Thus, it is no longer a question of getting life insurance but getting the best life insurance in the Philippines from among the top insurance companies in the Philippines.
The Need to Have Life Insurance
As the term suggests, life insurance is “insurance” for the family, with the ‘beneficiaries’ receiving a monetary benefit in case of the insured’s death. The insured can be the sole breadwinner (usually the father) or both spouses if both are breadwinners. It is the basic premise of a life insurance policy.
Today, modern life insurance in the Philippines covers not only death but also medical benefits for the insured in case of an accident, serious illness, or disability. It means the family has the funds to cover medical expenses. Some life insurance policies even have optional “investment packages” in which the insurer can “withdraw” money from the policy after a certain number of years.
The Rising Cost of Medical Bills in the Philippines
Based on 2017 surveys, only 4 million Filipinos have HMO (Health Maintenance Organization) coverage. However, the average maximum benefit limit of HMOs in the Philippines is only around P150,000. While this may help employees with certain illnesses, the limit is minimal compared to the average cost of medical treatments for specific disabilities and significant concerns such as stroke, heart attack, and cancer.
To put things in perspective, the average cost of treatment for strokes and heart attacks is between P900,000 and P1.8 million. Treatments can cost between P430,000 and P2.7 million, depending on the type of cancer.
It is now where life and health insurance comes in by getting the best life insurance in the Philippines suited to your family’s needs.
Getting the Best Insurance in the Philippines Based on Your Needs
1. Know what you and your family need
Don’t just get insurance because it’s “the safe thing to do.” Understand what you and your family need and what you may face soon. Remember that getting the best life insurance in the Philippines means protecting the insured and the family against financial struggles.
So, one of the main goals (or needs) is to secure your family’s finances during your death (the insured). Another primary need concerning the first is to cover the rising cost of medical care in case of illness or disability of the insured or any family member.
Another need or goal is securing your children’s future by providing the best education possible. Most insurance policies can cover this. Or you’re considering retirement and need capital to start a small business to keep you busy.
Before even setting an appointment with an insurance broker, set your goals now based on your family’s and your needs.
2. Prepare lots of questions
An excellent insurance broker is ready to answer all your questions, big or small. So ask about the fine print and things found in it, such as rider charges, policy fees, and taxes. Discuss and ask about each policy feature and if something needs to be clarified. Ask what would happen in different scenarios in the future and cover all bases now, including how long it takes to cash in on the policy after an incident.
3. Compare everything from at least three insurance providers
Get full insurance rates, quotes, or proposals from at least three insurance providers and then compare everything. Compare all primary and supplementary benefits and riders. Compare the premiums and find out why one insurance coverage is more expensive.
4. Make sure that the provider is licensed and has a solid background
Of course, the companies with the best life insurance in the Philippines in this article are all legitimate and licensed. You can still check with the Insurance Commission of the Philippines for your peace of mind. Then, if an insurance company has been operating steadily for a long time and has earned a good reputation in the industry, they’re worth trusting. Still, visit their official websites to check everything out.
5. Check out the financial performance
The top life insurance companies will always perform well based on these five criteria:
- Premium income – The total amount a company receives from client premiums. Higher premium income means it serves a lot of policyholders.
- Assets – This includes all properties available in case of debt payments. The higher the firm’s assets, the better.
- Net worth – The value of all the company’s assets minus its liabilities. A higher net worth means being able to continue operating despite losses.
- Net income – This is computed by deducting the company’s total expenses from its total revenues.
- New business annual premium equivalent (NBAPE) – This signifies a company’s sales performance in a given year and its vitality to acquire new business for further investments and growth.
Types of Life Insurance in the Philippines
Term Life Insurance
Term life insurance is a type of insurance that protects for a specific period, ranging from one to over ten years. In the event of the insured’s death during the policy period, the beneficiaries receive a death benefit payout. However, if the policyholder outlives the term, there is no payout.
This type of insurance is a pure form of coverage with no savings component, which makes it the most affordable type of life insurance available. Term life insurance is ideal for low-income earners who want maximum protection at a minimal cost.
If you’re considering options for the best term insurance in the Philippines, several excellent choices are available. Manulife YRT or React5, AIA Guardian, PRULife Your Term, and Sun Safer Life are just some policies that can provide you and your loved ones with the protection you need. So, choose the plan that suits your needs and enjoy peace of mind knowing that your family’s future is secured.
Prepaid Health Cards
Prepaid health cards are a unique type of health insurance that differs from other plans. These cards are similar to e-vouchers and provide one-time access to selected medical facilities and specific treatments, depending on the card’s coverage.
Generally, there are three prepaid health cards, each offering various coverage, including emergency care, hospitalization, and preventive care.
While prepaid health cards are typically more affordable and flexible than other health insurance options, they offer fewer services and usually expire after one year. Despite this, they remain an excellent choice for individuals seeking an affordable and accessible option for essential medical needs.
Variable Universal Life Insurance (VUL)
Variable Universal Life Insurance, commonly known as VUL, is a type of insurance that combines the benefits of whole life insurance and investment. Unlike traditional life insurance policies with a fixed death benefit payout, VUL provides a death benefit to the beneficiaries whenever the insured dies.
One of the unique features of VUL is that it accumulates a cash value invested in various funds such as balanced bonds, money markets, and equity funds. Therefore, VULs are ideal for individuals seeking long-term investment opportunities and insurance coverage.
The investment component of VUL makes it more flexible than other insurance policies. It allows policyholders to allocate their premiums to different investment funds based on their risk appetite and financial goals. Additionally, VULs offer tax advantages, making them a popular choice for high-income earners.
VULs are also highly customizable, with policyholders having the option to add riders and benefits to their policies. These riders include accidental death benefits, waiver of premium, and disability income benefits.
Whole Life Insurance
Whole life insurance is a type of insurance that provides lifetime protection for the policyholder. Unlike term insurance, which covers a specific period, full life insurance offers coverage until the policyholder reaches 100 years of age.
In the Philippines, whole life insurance provides not only death benefits but also a savings component. It means that as the policyholder pays premiums, a portion of the premium goes towards building cash value within the policy. This cash value grows over time and earns dividends, which can be used to supplement retirement income or pay for your child’s college education.
The savings component of whole-life insurance makes it an attractive option for those looking to secure their future while enjoying financial flexibility. Policyholders can access the cash value in their policy through loans or withdrawals, allowing them to use the funds for any purpose they choose.
In addition to the savings component, whole life insurance policies offer other valuable benefits, such as fixed premiums, guaranteed death benefits, and tax advantages. These features make full life insurance a reliable and secure way to protect your loved ones financially while building wealth over time.
Top Insurance Companies in the Philippines
Based on the five criteria above, here are the companies that can furnish the best life insurance in the Philippines. We established the top 10 rankings on Premium Income. The other four category rankings show the company’s overall performance in the top 30.
Top Life Insurance with Investment in the Philippines
Sun Maxilink Prime
Sun Maxilink Prime is the ultimate insurance plan that provides protection and investment opportunities. Sun Life Insurance in the Philippines has designed this investment-linked life insurance plan to cater to individuals who want to secure their future while also growing their money.
Here are some of the fantastic features of Sun Maxilink Prime:
Investment-linked plan: This policy combines insurance benefits with an investment plan’s potential growth. With this feature, you can grow your money while ensuring protection for yourself and your loved ones.
Guaranteed life insurance benefit: In case of untimely death, your beneficiaries will receive a guaranteed life insurance benefit of at least twice your face amount. This feature provides financial security to your loved ones even in the most challenging times.
Supplemental benefits and riders: You can add extra benefits and riders to your policy for additional protection. These benefits include accidental death benefits, disability benefits, and critical illness coverage.
Flexible investment options: Sun Maxilink Prime offers various investment options to suit your needs. You can choose from multiple funds based on your risk appetite and financial goals.
Manageable payments: The policy allows for manageable payments, making building your investment easier and ensuring ongoing protection for your family.
Partial fund withdrawals: In emergencies, you can make partial fund withdrawals without charges.
Loyalty bonus: If you keep your policy active for at least ten years, you’ll receive a loyalty bonus as a reward.
PRULink Assurance Account Plus
If you’re searching for the best whole life insurance plan in the Philippines, your search stops with PRULink Assurance Account Plus. This investment-linked life insurance policy offers top-notch protection while helping you achieve financial growth.
Here are some of the fantastic features that you can enjoy with PRULink Assurance Account Plus:
Affordable premiums: Starting at just ₱15,000 annually, you can get high-quality life insurance coverage at a rate that won’t break the bank.
Long-term coverage: With protection that extends up to 100 years old, you can rest assured that you’ll be taken care of for the long haul.
Broad age eligibility: Even if you’re up to 70, you could still be eligible for this plan.
Additional benefits: You can add more benefits to your policy, such as accidental death benefits and critical illness coverage, which would further increase your protection.
Flexible fund withdrawals: There will be no charges if you need to access your funds.
Loyalty bonus: Keep your policy active for a particular time, and you’ll receive a loyalty bonus as a reward.
AXA Life BasiX Plus
AXA LAXA Life Insurance Corporation in the Philippines has introduced an all-in-one package – AXA Life BasiX Plus. This insurance and investment product offers life, health, and investment components in one place. With this package, you can focus on building your wealth while preparing for any uncertainties in the future.
Here are some of the features that make AXA Life BasiX Plus stand out:
Guaranteed life coverage: Starting at ₱1 million, you can be sure that your loved ones will be taken care of in case of any unfortunate event.
Coverage for critical illnesses: In the event of a covered major critical illness, you’ll receive a guaranteed medical fund to cover your expenses.
Long-term health coverage: You’ll have health coverage until age 100, giving you the peace of mind to enjoy your golden years.
Partial withdrawals: From the age of 70, you can withdraw your health coverage to meet your financial needs.
Flexible payment options: With at least ten years of payment, you can build your fund at your own pace. Moreover, you also have the opportunity to pay longer to increase your investment.
Optional riders: To further enhance your coverage, add optional riders like accidental death benefit and Waiver of Premium.
AIA Family Secure
Int AIA Family Secure – the life insurance plan that offers you peace of mind and helps you to plan for a secure future. This high-value life insurance policy comes with a minimum premium of only ₱16,000 per year and allows you to convert your coverage into a retirement plan as you age.
Here are some of the fantastic features of AIA Family Secure:
High-value coverage: You can enjoy extensive life insurance coverage to secure the financial future of your loved ones. In the event of any unfortunate circumstances, they’ll receive financial support that can provide them with stability during tough times.
Convertible plan: As you age and your priorities change, you might need to adjust your coverage accordingly. With AIA Family Secure, you can convert your scope into a retirement plan. Decrease your coverage and boost your account value to help you prepare for retirement.
Exclusive rewards: You’ll receive exclusive Philam Vitality rewards and perks, such as discounts on gym memberships, wellness programs, and other healthy living benefits. This program promotes healthy living and inspires you to live a healthier lifestyle.
Customizable coverage: You can customize your plan to meet your specific needs. The flexibility of this policy allows you to increase your range when necessary.
Broad age eligibility: You can apply for AIA Family Secure up to 70.
Long-term coverage: The policy also covers up to 100 years old, ensuring you’re protected for the long haul.
FWD Family Hero
FWD Life Insurance Corporation in the Philippines has another fantastic product that offers lifetime protection, passive income creation, and wealth building – FWD Family Hero. This insurance plan protects you and your loved ones from unexpected health setbacks while providing you with long-term financial security.
Here are some of the fantastic features of FWD Family Hero:
Life insurance and investment: FWD Family Hero consists of Set for Life or Manifest for life insurance and investment components. This feature provides you with both protection and investment opportunities.
Critical illness protection: HealthPro offers critical illness protection that covers significant illnesses, such as cancer, heart attack, and stroke, among others. In case of any of these critical illnesses, you’ll receive a lump sum amount to support your treatment and help you on your road to recovery.
Hospital cash benefit: RecoveryPro provides a hospital cash benefit that pays out between ₱1,000 and ₱10,000 per day, and 100% more if confined in the ICU. This feature is designed to provide you with financial support during hospitalization.
Waived future premiums: In case of major illness, permanent disability, or loss of life, your future premiums will be waived, ensuring that your policy remains in force without any additional financial burden on your family.
FWD Set for Life
Introducing FWD Set for Life – the perfect solution for those who want a lifetime of protection and an investment product to build their wealth. This FWD life insurance policy provides coverage up to the age of 100, making it an ideal plan for those seeking long-term financial security.
Here are some of the fantastic features that make FWD Set for Life stand out:
Lifetime protection and investment: With FWD Set for Life, you get protection and investment opportunities. This feature ensures that your money is not just sitting idle but is also working hard for you.
Loyalty bonus: On your policy’s 10th year and every five years after, you’ll receive a loyalty bonus for keeping your policy active.
Waived future payments: In case of critical illness or permanent disability, your future payments will be waived, ensuring that your coverage remains in force without any additional financial burden on your family.
Customizable coverage: FWD Set for Life offers various add-ons to customize your coverage. You can add accidental death benefits, accidental total and permanent disability benefits, and waiver of premium benefits, among others.
Additional cash benefit: In case of accidental death before age 75, your beneficiaries will receive an additional cash benefit, providing them with additional financial support during a difficult time.
Investing in life insurance is an intelligent way to protect your family from financial hardship in the future. With so many different policies available, it’s essential to consider your needs and budget when deciding which one is right for you. To make it easier, comparing some of the most popular options on the market can help you find the best life insurance policy. In addition, looking for features such as low premiums and high coverage limits and focusing on customer service from insurers is always a good idea. With these tips in mind, you can ensure your family is well-protected. So don’t wait another day – explore the best life insurance plans in the Philippines today!
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