Philippine top term insurance: The benefits of getting insured

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We’ve covered life insurance in the Philippines quite extensively. We discussed the purpose of getting insured, test for insurability, adding a rider, the general types of insurance products in the market, list of insurance companies you can buy them from, and common questions. In this article, we’re going to talk about term insurance.

What is term insurance

In our country, term insurance is a type of insurance that gives you cover for a specific period of time. Usually, you purchase it at a relatively affordable amount and agree to a short validity.

That’s why it’s called by its name, term being the length of time that you can enjoy the coverage. When it expires, you may choose to renew it again.

It is useful to compare it with whole life insurance. The former insures you for a period, usually for a year, and it is usually cheaper between the two.

Whole life insurance on the other hand gives you cover for an entire lifespan, somewhere between 88 years to 100 years. Such a plan may require more expensive premiums in the first few years, more like pre-paying the coverage.

If you look at these two products from this basis alone, you might say that it’s better to get insured for as long as possible and therefore whole life insurance beats term insurance.

But comparing the two is not as easy as that because there are other factors that you should consider before buying either one.

Common factors in term insurance

Below are common things in a term insurance product.

  • Term refers to the length of time that your policy is paid up for and valid. After the term ends, your policy may be up for a renewal or end up getting terminated.
  • Cover is the value of the insurance. It is the amount of money that beneficiaries can expect to get when the insured person passes away suddenly.
  • Premium is the money paid to the insurer. It is what makes the policy coverage to start and become enforceable.
  • Once the term is up, it can be renewed up to a certain age.

What are the advantages of buying term insurance?

There are many benefits in purchasing a term insurance policy.

  • It is affordable because you’re paying only for one term at a time.
  • There are many flexible terms you can choose from, ranging from one year or longer.
  • Flexible payment schemes exist.
  • You can get the most coverage at a reasonable price. That means you can get insured for millions of pesos without breaking the bank.
  • It can be customized. For instance, you can add riders such as critical illness, hospitalization benefit, or accident coverage.
  • Automatic renewal is an option, so there’s less hassle in terms of managing the policy.
  • Renewal is done without need for medical underwriting.
  • The policy is convertible to whole life insurance.
  • It may be used with other financial strategies, such as buying term and investing the difference.

What are the disadvantages of getting a term insurance policy

Term insurance’s biggest advantage is its cost. It’s relatively less expensive compared to a whole life insurance. And that’s because you’re paying only for one term or one renewal, while whole life covers an entire lifespan to be paid on your first few years.

However, there are also disadvantages.

  • Limit. It stops at a certain age. In the market today, most products stop when you reach the age 65 to 70 years old. This means that it can’t be renewed anymore at a time in your life when you need insurance the most.
  • No cash value. There is no savings or investments. Unlike other products, it has no cash value, account value, or dividend that increase or accumulate over time.
  • Increasing premium. Premium increases in each renewal without a corresponding increase in coverage. Meaning, you’re paying more to get the same benefits as you get older.
  • Relative premiums. Premium is more expensive for people in their 50’s or 60’s than those who are in their 20’s or early 30’s. It can be an issue too upon renewing existing plans.
  • Elderly people. There are available products in the market for people who are too old, like those in their late 60’s or 70’s.
  • New policy. You might develop health issues that might prohibit you from getting new insurance policy.
  • Renewal. Your ability to renew is only limited to the company you get the insurance from.

Top term insurance policies in the Philippines

Our goal here in PESOLAB is to give you an overview of the products that are available in the country. The list of term insurance plans and their details below may not be the latest or complete. Please consider visiting the links indicated in the list or visit the respective companies.

Term insurance plans you can buy from advisors

The term insurance policies that you see below are plans that might require an interaction with an advisor.

ProductCompanyInfo
Family Care PlusBPI Philam Life Assurance Corp., IncTerm: 10 years
Issue age: 18 – 65 years old
Cover age: until age 75
Detail: Life insurance, critical illness
Accident Guard 24/7BPI Philam Life Assurance Corp., IncIssue age: 18 – 65 Years old, 1-18 years old (in family plan)
Cover age: until age 72 (insured and spouse), 19 (child) or 23 (if child is full-time student) or dependent is married or is no longer primarily depnedent on the insured for support
Details: Benefits paid on accidental death and dismemberment, disability, and life insurance 
Life ProtectBPI Philam Life Assurance Corp., IncTerms: 1 year, 5 years, 10 years
Issue age: 18 – 79 years old
Details: Life insurance 
Personal Accident ShieldCaritas Life Insurance Corp.Issue age: 1 – 60 years old
Details: Accident insurance on death, dismemberment, hospitalization, and burial
Annually Renewable TermFirst Life Financial Company, lnc.Term: Annually
Issue age:  20 – 59 years old
Details: Life insurance, added benefit on death due to accident 
10 Year TermFirst Life Financial Company, lnc.Term: 10 years
Issue age: 20 – 60
Details: Accidental death benefit, waiver of premium
ANNUAL RENEWABLE TERM (ART)Fortune Life Insurance Company, lnc.Term: 1 year
Issue age:  20 – 60 years old
Details: Life insurance, renewable until 60 years old
5-YEAR RENEWABLE TERM (5-YRT)Fortune Life Insurance Company, lnc.Term: 5 years
Issue age:  10 – 55
Details: Life insurance, renewable until 55 years old
10-YEAR RENEWABLE TERM (10-YRT)Fortune Life Insurance Company, lnc.Term: 10 years
Issue age:  10 – 60
Details: Life insurance, renewable until 60 years old
FAMILY PROTECTOR PLAN PLUS (FPPP)Fortune Life Insurance Company, lnc.Term: 1 year
Issue age:  18-60 (Principal Insured), 18-60 (Spouse or Parents), 1-19 (Children or Siblings)
Details: Personal accident, medical reimbursement, burial benefits
HOSPITAL INCOME PLAN PLUS (HIPP)Fortune Life Insurance Company, lnc.Term: 1 year
Issue age:  5 – 59
Details: Cash benefits on hospital days, allowance on annual physical exam
FORTUNE ADVANTAGE PLAN (FAP)Fortune Life Insurance Company, lnc.Term: 1 year
Issue age: 18 – 59
Cover age: Until age 69
Details: Cash benefits on cancer diagnosis
FORTUNE CRITICAL ILLNESS PLANFortune Life Insurance Company, lnc.Term: 1 year
Issue age: 18 – 59
Cover age: Until age 69
Details: Cash benefits on diagnosis of critical illness depending on chosen variant of this insurance product
Set for Tomorrow (Term life)FWD Life Insurance Corp.Term: 5 years, 10 years, or up to age 55, 60, and 65
Details: Life insurance, terminal illness, accident, funeral assistance
BASIC SECUREInsular Life Assce. Co., Ltd., TheTerm: 5 years or 10 years
Cover age: 75 (for 5-year plan), 70 (for 10-year plan)
Details: Life insurance, spouse Details on deaths due to same accident
I-SHIELD PRIMEInsular Life Assce. Co., Ltd., TheIssue age: 18 – 64
Details: Accident, dismemberment and hospitalization including ICU and surgery due to accident  
PRIME SECUREInsular Life Assce. Co., Ltd., TheTerm: 1 year
Issue age: 18 – 60 
Details: Critical illness, daily hospital income, life insurance, Covid-19, spouse Details on death due to same accident
Personal Accident Insurance (PAI)Manila Bankers Life Insurance Corp.Term: 1 year
Issue age: 1 – 64
Details: Accidental death and dismemberment, burial benefit
Income Replacement Assurance (IRA)Manila Bankers Life Insurance Corp.Term: 1 year
Issue age: 1 – 64
Details: Hospital benefit
Yearly Renewable TermManufacturers Life Ins. Co. (Phils.), Inc., TheTerm: 1 years
Cover age: until age 69 or for 10 years, whichever is longer
React5Manufacturers Life Ins. Co. (Phils.), Inc., TheTerm: 5 years
Cover age: until 80 years old
Base ProtectManulife Chinabank Life Assce. Corp.Term: 1 year
Details: Life insurance
Base Protect PlusManulife Chinabank Life Assce. Corp.Term: 5 years
Details: Life insurance
PRIME TERMParamount Life & General Ins. Corp. (life unit)Term: 5 years
Issue age: 5 to 60 years old
Details: Life insurance
SECURE ESSENTIALParamount Life & General Ins. Corp. (life unit)Term: 1 year
Issue age: 18 to 69
Details: Life insurance
4 Star PlanPhilippines lnternational Life Ins. Co., lnc.Term: 4 years
Issue age: 15 to 60
Details: Life insurance
GuardianPhilippine American Life & Gen. Ins. Co.Term: 1 year, 5 years, 10 years or until age 65
Issue age: 0 to 84
Cover age: until 85 years old
Details: Life insurance
CANCER LIFE SHIELDPhilippine American Life & Gen. Ins. Co.Term: 1 year
Issue age: 20 – 59
Cover age: Until 60 years old
Details: Critical illness on diagnosis of cancer
ACTIVE JOINT CRITICAL PROTECTPhilippine American Life & Gen. Ins. Co.Term: 10 years
Issue age: 18 – 65
Cover age: For 10 years, until age 75
Details: Life insurance, critical illness
FlexiProtectPhilippine AXA Life Insurance. Corp.Term: 5 years
Details: Life insurance
My SecurityPhilippine AXA Life Insurance. Corp.Issue age: 18 – 65
Details: Accident insurance
Five ProtectPhilippine Life Financial Assce. Corp.Term: 5 years
Issue age: 18 – 80
Details: Life insurance, terminal illness 
Health ProtectPhilippine Life Financial Assce. Corp.Term: 5 years
Issue age: 20 – 55
Cover age: up to age 55
Details: Hospital benefit, terminal illness
PRUMax InvestPru Life Insurance Corp. of U.K.Term: 15 years
Issue age: 18 – 65
Cover age: up to age 65
Details: Life insurance, optional investment link Variable life rider
PRUTerm 15Pru Life Insurance Corp. of U.K.Term: 15 years
Issue age: 18 – 65
Details: Life insurance
PRU Life Care PlusPru Life Insurance Corp. of U.K.Term: 1 year
Issue age: 18 – 65
Cover age: until age 70
Details: Critical illness
PRU Life Care Advance PlusPru Life Insurance Corp. of U.K.Term: 1 year
Issue age: 18 – 65
Cover age: until age 70
Details: Critical illness (early and advance stage, plus special benefits)
PRU Multiple Life Care PlusPru Life Insurance Corp. of U.K. Term: 1 year
Issue age: 18 – 65
Details: Critical illness
PRUPersonal AccidentPru Life Insurance Corp. of U.K.Term: 1 year
Issue age: 5 – 64
Cover age: until age 70
Details: Accident, total and permanent disability, burial benefit, murder and assault
SUN Safer LifeSun Life of Canada (Philippines), Inc.Term: 5 years
Issue age:
Cover age: until age 75
Details: Life insurance
SUN StartUpSun Life of Canada (Philippines), Inc.Term: 10 years
Cover age: until age 75
Details: Life insurance, return of premium
Sun Maiden and Sun Maiden PlusSun Life of Canada (Philippines), Inc.Term: 5 years
Issue age: 18 – 55, female
Cover age: until age 65
Details: Life insurance, critical illness, maternity benefits
Sun Grepa ProTermSunLife Grepa Financial, Inc.Term: 5 years
Cover age: until age 74
Details: Life insurance
Sun Grepa ProhealthSunLife Grepa Financial, Inc.Issue: 18 – 60
Cover age: until  age 70
Details: Life insurance, Critical illness
Cocolife ProtectUnited Coconut Planters Life Assce. Corp.Term: 1 year, 2 years, 3 years
Issue age: until 62 or 63, depending on the chosen variant
Details: Accident insurance, burial benefit 

Term insurance that you can buy online

Insurers have made term insurance policies available for purchase online. They can be bought either directly from their website, through telesales, or on shopping platforms.

For instance, there are a couple of plans from Sun Life and First Life Financial Company, Inc. that are on Lazada.

Being able to buy policies online is convenient. (And during the time of the pandemic, it can also be an option that is safe.)

The downside is that there might be limited to no interaction with an advisor. Thus, buyers are urged to read the terms and conditions available online or reach out to company rep whenever possible for any further inquiries about the plans.

NameCompanyInfo
Life Protect Health DirectBPI Philam Life Assurance Corp., IncIssue age: 18 – 50 years old
Details: Critical illness, terminal illness, life insurance
Smart Health Shield SeriesBPI Philam Life Assurance Corp., IncIssue age: 0 – 64 years old
Details: Mosquito-borne diseases, minor illnesses, accident insurance, daily hospital benefit 
AspireFirst Life Financial Company, lnc.Issue age: 18 – 55
Cover: 1 year
Details: Life insurance, accident (death, dismemberment, disablement)
Aspire PlusFirst Life Financial Company, lnc. Issue age: 18 – 55
Cover: 1 year
Details: Life insurance, accident (death, dismemberment, disablement, reimbursement on injuries from accident)
Aspire MaxFirst Life Financial Company, lnc. Issue age: 18 – 55
Cover: 1 year
Details: Life insurance, accident (death, dismemberment, disablement), hospital benefit
Aspire PremiumFirst Life Financial Company, lnc. Issue age: 18 – 55
Cover: 1 year
Details: Life insurance, accident (death, dismemberment, disablement, reimbursement on injuries from accident), hospital benefit
3-in-1 ProtectionFWD Life Insurance Corp.Term: 1 year
Issue age: 18 – 50
Cover age: Until age 55
Details: Life insurance, critical illness, accident and terror, medical support 
KanGuardFWD Life Insurance Corp.Term: 1 year
Issue age: 18 – 50
Cover age: 55
Details: Accident and terror, emergency service, COVID-19
KanLiveFWD Life Insurance Corp.Term: 1 year
Issue age: 18 – 50
Cover age: 55
Details: Life insurance, medical  consultation, dengue, COVID-19
KanMendFWD Life Insurance Corp.Term: 1 year
Issue age: 18 – 50
Cover age: 55
Details: Critical illness on 42 diseases, 6 months telemedicine access on Year 1, ambulatory care center on Year 2, COVID-19
Set for Tomorrow (Online)FWD Life Insurance Corp.Term: 5 years, 10 years, or up to age 55, 60, and 65
Issue age: 25 – 55
Details: Life insurance, terminal illness, accident, funeral assistance, exclusive rewards
PRIME CAREInsular Life Assce. Co., Ltd., TheTerm: 1 year
Issue age: 18 – 60
Details: Benefits upon diagnosis of any of the 35 critical illnesses, allowance for medical recovery and expenses, total and permanent disability, consultation, life insurance, 
Prime Secure LiteInsular Life Assce. Co., Ltd., TheTerm: 1 year
Issue age:  18 – 60
Details:  Life insurance, accident insurance, critical illness, Covid-19
Health Start LitePhilippine AXA Life Insurance. Corp.Term: 1 year
Issue age: 18 – 60
Cover age: until age 75 years old
Details: Critical illness, life insurance, free medical teleconsultation
Dengue RXPhilippine Life Financial Assce. Corp.Term: 1 year
Issue age: 0 – 59
Details: Hospital benefit due to dengue, accident insurance
PRULife Your TermPru Life Insurance Corp. of U.K.Term: 1 year
Issue age: 0 – 79
Cover age: up to age 89
Details: Life insurance
PRUShieldPru Life Insurance Corp. of U.K.Term: 1 year
Issue age: 18 – 64
Cover age: up to age 65
Details: Life insurance, hospitalization benefit
PRUHealth Prime – Select Breast CancerPru Life Insurance Corp. of U.K.Term: 1 year
Issue age: Female, 25 – 45
Cover age: until age 45
Details: Critical illness (breast cancer)
Sun First AidSun Life of Canada (Philippines), Inc.Term: 10 years
Details: Life insurance, accident, benefits on days in hospital, return of premium
Family ArmorSun Life of Canada (Philippines), Inc.Term: 1 year
Issue age: 18 – 64, children 2 weeks to under 21 years old
Cover age: 18 – 64
Details: Accident insurance, hospital benefit due to accident, extended coverage to spouse and children
Life ArmorSun Life of Canada (Philippines), Inc.Term: 1 year
Issue age: 18 – 50
Details: Life insurance, accident
Personal Accident InsuranceSun Life of Canada (Philippines), Inc.Term: 1 year
Issue age: 18 – 64
Details: Accident insurance 
Byahero ProtectSun Life of Canada (Philippines), Inc.Term: 1 year
Issue age: 18 – 64
Details: Accident insurance, burial benefit due to death from land travel accident, 

Term insurance that return premiums

Another type of term insurance is one that returns whole or part of your premium payments when the plan matures. That is, the insurer will give back all or some portion of the money you paid.

The catch is that terms and conditions have to be met, such as for example that there must be no claims made within the coverage period.

NameCompanyInfo
eAzy ProtectAllianz PNB Life Insurance, lnc.Term: 10 years
Issue age: 18 – 50 years
Details: Life insurance, accident
Alliance eAZy HealthAllianz PNB Life Insurance, lnc.Term: 5 years
Issue age: 18 – 50 years
Details: Life insurance, critical illness, accident, disability
Life Protect Health DirectBPI Philam Life Assurance Corp., IncIssue age: 18 – 50 years old
Details: Critical illness, terminal illness, life insurance
Hospital Cash PlusFirst Life Financial Company, lnc.Term: 15 years
Issue age: 
Details: Cash benefit for each day hospitalized, additional 100% on ICU, accident insurance, waiver of premium in case of total and permanent disability
Sun LifeAssureSun Life of Canada (Philippines), Inc.Term: 5 years
Issue age: 18 – 60
Cover age: until age 70
Details: Life insurance, critical illness
Sun Grepa StartUpSunLife Grepa Financial, Inc.Term: 10 years
Details: Life insurance, Return of premium

Qualities of a good term insurance

How can you look for the best term insurance product? It’s quite hard to answer this question, but what one can do is to actually look at the qualities of the product.

Reasonable rate

It isn’t too expensive that you can’t afford. The cost is reasonable with the benefits that you’re getting in return.

Optimum insurance coverage

The sum insured matches your current insurance needs. It does not under- or over-insure you. It is just right. In this way, you are paying the exact amount and getting the appropriate level of insurance that you need.

Riders

The life insurance plan gives you the ability to attach insurance riders. extends to situations that might impact your ability to earn an income, not just loss of life. See if you can attach contracts for critical conditions, accidental death, hospitalization, or waiver of premium.

Trusted provider

You trust the company and the rep that you’re dealing with. That means that they are regulated by the government, is recognized as one of the top insurance companies in the country, and has a long, established history.

Customer care

Are you able to get in touch with somebody through phone, email, online, or physical location? How well are you taken care of? How quick is the response time should you have questions about your policy?

Ease

It should be easy to manage, track, and get updates with. Is there an online access where you can do simple transactions like paying and checking account status?

Renewal

You can also check the ease in which you can renew once the term is up. This can be done through an auto-debit arrangement.

Tips on how to buy term insurance

If you’re decided to get a term insurance product, it might be tempting to go with a company where you know someone. That’s very typical of us Filipinos. Familiarity is comforting. However, you might be depriving yourself of better deals elsewhere. Here are some tips in buying your term insurance.

Look around

Check what other providers have in store. Make comparisons between similar products, rates, terms, and payment methods.

Go with a reputable insurer

Only go with duly-licensed life insurance insurers.

Talk with an advisor

An advisor is someone who has registered with the Insurance Commission to sell insurance products. They can help better choose the product that suits you.

Ask for required files

There will be a couple of required first premium and files. Prepare them ahead so that you’ll have a hassle-free application.

Pick your beneficiaries

The policy will require you to declare your beneficiaries. Your beneficiaries are the people who would receive the benefits. From the start, come up with a list of people who depend on you financially.

Open an account

Once you’ve chosen the right product and company, start the account. Wait for the issuance of the policy.

Check the status

It’s important that you know when to pay your policy on time and when to renew it. From time to time, check the status to make sure that you are still insured.

Taking advantage of term insurance

By the time that you have a plan, make the most out of it. Take advantage of what it can offer. In this way, you don’t get to miss any opportunity to get the most bang for your buck.

  • Financial checkup. As you grow older, your insurance needs increase. The plan you purchased five years ago may no longer be suitable for you. Make sure that you undergo periodic financial check so your coverage remain adequate.
  • Buy just what you need. There is no use being under- or over-insured. Purchase the right policy that’s just right for you.
  • Add riders. Riders can expand the purpose and cover of your policy. Check what riders you need and add them on to your plan.
  • Pay on time. Your plan stops when it’s not paid on time, so be right on top of things and ensure that the plan is paid.
  • Renew on time. When the term lapses, your plan renews. Aside from making sure that it’s paid, you need to be mindful for its renewal. Get to know ahead of time the new rates, any changes of the policy’s rules, and other items.
  • Convert. Talk to your advisor about convertibility of the policy. Having a whole life plan might be something that’s more appropriate for you.
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