It is the year 2019. Many realize that getting a life insurance policy is a very important investment that people need to make. While it is true that many people may not think they need life insurance, most people would need to provide financial security for their children or dependents if they suddenly pass away.

The best life insurance for you and your family

In a nutshell, investing in life insurance would be needed by people who are breadwinners for their families. These families would not have any source of income when that breadwinner would pass away and the death benefit that will come from the life insurance policy will be out in place to make sure that the family does not go into financial ruin when the policyholder dies. Also, it would allow the family to grieve in peace because part of the death benefit would include the funeral arrangements as well as a mass or memorial service for the policyholder. All life insurance policies would have some sort of version of this death benefit included, but life insurance is so much more than just an amount of money given to a family when someone dies.

If you analyze what your family’s needs are, your life insurance policy can be used as a way to meet those needs. There would be many life insurance companies that would offer customizable life insurance policies, like Manila Bankers Life Insurance Corporation or MBLIFE.

MBLIFE would have many different riders that you can add on to your plan to make it possible to meet your needs using your life insurance policy. They would offer term plans, whole life plans, and life plans that would include a retirement benefit. They would have anything you would need in a life insurance plan.

Do I need life insurance?

You might be asking yourself this question. Even if you do not have any dependents or children, it would still be a good idea to invest in life insurance because it can have so many other aspects to it rather than just the death benefit that the beneficiaries would receive when the policyholder dies. 

Retirement benefit.

With your life insurance policy, you can include a retirement benefit. Part of the premiums you would be paying would go toward saving for your retirement so that you can have some added funds to your pension. If you will not receive a pension from your current job, your life insurance place can be your pension after you retire. 

Illness rider.

You will be covered in case you would be diagnosed with certain illnesses when you are older. Your life insurance plan can help you with medical expenses and hospitalization costs.

Savings. 

In this day and age, it can be very difficult to save money. But with a life insurance plan, you will be forced into saving because part of the premium payments you make will go toward savings. 

Investment.

If you want to go into investing but are hesitant because you don’t have knowledge of how to invest in the stock market, you can invest in life insurance and the experts that are affiliated with your life insurance company will invest your money for you. A portion of your premium will also go into investing in stocks. 

At the end of the day, the best type of life insurance is the one that your family will most benefit from. Each type of life insurance would provide different types of benefits and would cater to a different need. This is why it is important to consider each need of your family before investing in life insurance.

Life insurance is a very customizable asset that you can invest in for your family. There would be several life insurance companies that can provide you with many choices to safeguard you and your family.

What are the different types of life insurance available?

Many options would be available to you when it comes to buying life insurance. It can be confusing, especially if you are going to invest for the first time. Let us break it down and help make the choice a little bit easier for you.

There would be many forms of insurance. Some types would expire, some would be valid for your whole life and some others would have an investment attached to them. The two major forms of life insurance can all fall under two categories, term life insurance, and permanent life insurance. 

What is term life insurance?

Any type of insurance that would fall under term life insurance would expire. It would only be valid for a certain “term” hence why it is called “term” life insurance. It would be a very straightforward insurance package. The premiums that you pay would only go toward your death benefit. This would be the amount that would go to your beneficiaries in the event of your death. Some companies would also have policies that would include a memorial service in the amount that you would pay for.

The death benefit can be given to your family in a lump sum payment, or in monthly installments, to replace the income that you were providing for them. Term life insurance policies can last anytime from one to 30 years. This means that if the terms lapses, then the policy expires. Their beneficiaries get nothing if they outlive the time listed on the policy.

What is whole life insurance?

Whole life insurance, in turn, would have a death benefit and a cash value at the same time. The span of whole life insurance would be for a policyholder’s whole life. Many people feel that a whole life insurance package would be more suitable because even if they live until they would be old and gray, their death benefit would still be given to their beneficiaries.

Permanent life insurance

There is another kind of life insurance called permanent life insurance. It would cover policies that would last for as long as one would keep paying the premiums. In essence, whole life insurance is a type of permanent life insurance policy. There are other types of permanent life insurance policies, and we will expound on them further.

Universal life insurance

Similar to whole life insurance, universal life insurance would also have a cash benefit as well as a death benefit, but then the advantage of getting this type of insurance would be that at any time, the policyholder may be able to change the details of the policy. This flexibility may be enticing to some people, but it may come at an added cost.

No matter what type of life insurance you choose to invest in, it would be a good idea to talk about it with your insurance agent, to make sure that you are getting the most out of the policy you will invest in.

When we talk about life insurance, you would automatically think about the cash that will be given to your family in the event of your death. However, that is not the only benefit that you can get out of life insurance. That is only the most basic element of a life insurance policy. With all the stresses in life, one way to make the most out of your life insurance policy would be for you to use your insurance as a retirement fund.

What is a retirement fund?

A retirement fund, also known as a pension plan, is a special kind of insurance that will go toward saving for the money you will receive after you retire. The most common type of pension would be given every month and it would be used to take the place of the salary will stop receiving when you stop working. There is nobody on earth who will want to continue working after the age of 60, so a retirement plan is a necessity.

Why do you need to have a retirement fund?

When people reach retirement age, their goals should change. Their priority would no longer be how to earn more money but how to spend all the hard-earned cash, they had spent their entire lives working to save. They should be thinking about where to go on vacation, what exotic food they would want to try, what places they have always wanted to visit. The problem should not be whether they have enough money to spend for all the things on their bucket list. The only problem should be which souvenirs they are going to buy.

How you can use your life insurance for your retirement

An insurance plan would be a very useful tool to help you save for your retirement. The premiums you pay the life insurance company would go toward saving for the compensation you will receive. Along with the death benefit that would be in any life insurance plan, you may also choose to add an illness benefit that would cover illnesses that you might have as well as investment tools that would help your money grow, so that your pension benefit would be bigger.

On top of this, if you have a pension plan, you will not need to rely on your family to give you money when you are old. You will have enough money to spend for yourself, on what you need and want. If you will have to rely on your children or other family members, most of the time, they would dictate how you should spend the money they give to you.

Where is the fun in that? You worked all your life so that you can be able to have the time of your life when you retire. When you retire, you should be able to enjoy the fruits of your labor. Life insurance can provide you with money. Only you will get to decide how that money is spent.

Why you have to invest in life insurance today

The economy is changing really quickly in the Philippines. There are more people who are employed, that means the quality of life for each Filipino family is rising. These Filipinos who are earning more than they are spending have the capacity to pay for a life insurance package for themselves and for their family. This is why the best time to start saving is now. Invest in a life insurance plan today and start setting money aside for your retirement.

To give a definition, term life insurance would give you coverage for a set amount of time. Unlike whole life insurance, which from its name would give you coverage for your entire life, term life insurance would only be valid for a certain period.

After that time runs out, it would be your choice to renew it again or not. In most cases, term life insurance would be cheaper than other types of life insurance.

Many companies would offer term life insurance packages, along with whole life and other types of insurance. What is good about term life insurance is that since your needs would change over time, once your policy expires, you can get another one that would meet the new needs your family has.

We have narrowed the search down to the top four companies and term life insurance policies that you can get in the Philippines. We hope that this list can help you make a good choice as you invest in your term life insurance.

Top four term insurances in the Philippines 2019

AXA FlexiProject.

This term life insurance package would be valid for five years, and it would offer substantial coverage if something would happen to you. There would be many riders available for you within this package such as a critical conditions rider that would give coverage to over 50 illnesses, a secure rider that would cover you in case you meet an accident, care rider that would provide benefits in case you would need to be hospitalized and also a waiver of premium that would still allow you to have coverage in case you lost the ability to pay for your policy.

PhilAm Guardian.

This package would be valid from anytime between one to 10 years, or until you would reach the ripe old age of 65. As in other packages with other companies, you can add several riders to this package such as hospitalization, accident and disability benefits. What is special about this package is that at the end of the term, you have the option of converting it to an endowment plan without the need to present proof of insurability.

Manulife Yearly Renewable Term (YRT)

This would give you coverage for one year, Manulife has another package potion for you called the REaCT package and that would be good for five years. Both of these products would be renewable, and they would also be convertible to whole life insurance, in case you would want to have peace of mind for the long term.

Sun Safe Life

This is SunLife’s option for term life insurance, it would be renewable until you reach 75 years old. You can also customize the riders of this plan and it would be converted to an investment-linked type of plan as long as you are 65 years old or below.

FWD Set for Tomorrow: Short Term Cover

This package would have a validity period of five or ten years. This package stipulates that 100% of the proceeds be given if the policyholder is diagnosed with a terminal illness, with 10% being released 48 hours in advance.

It also states that if the policyholder and their spouse meet an untimely death because of an accident, 100% of the proceeds to be given if they have a child or dependent who is 17 years old or below.

These would be the top four life insurance packages that would be available in the Philippines today. No matter which company you choose to go with, they would all have their version of term life insurance. Most of these packages would be customizable and convertible to whole life insurance, should the need arise.

There are various types of life insurance that you can avail of. You might be wondering if getting a life insurance policy is the right way to go, especially since you would already have so many expenses as it is.

You might be asking yourself “Why life insurance?”

To make a long story short, to protect you and your family. Insurance makes it possible to prepare for any emergencies that may strike later on.

It is an affordable way to prepare for any unwanted and unforeseen events like death, hospitalization, disability, accidents, and any other unexpected expenses that can put a strain on your budget if you are not prepared for it,

Not everyone can have enough savings in the bank to cover every emergency that happens. This is the answer to “Why life insurance?” it is to make sure you are prepared for anything that can happen.

You can be able to do this by listing down all the needs of your family, and making sure that each of those needs are met by a cash benefit in your life insurance policy. In this article, we will discuss the types of life insurance plans and what they would cover. So that we can help you make an informed decision when you buy your life insurance.

There are three general kinds of life insurance.

Term life insurance. This would only offer payment of a death benefit for a fixed period. The period would usually range anytime from one to 30 years. This is not a wise investment because if the policyholder does not pass away within the term, they would get nothing out of their investment. Of course, nobody will wish that their loved one would die sooner just to be able to get back what they invested in term life insurance, so this is honestly not a good investment.

Whole life insurance. Whole life insurance, as the name implies, would offer coverage for the whole life of the policyholder. In some companies, whole life insurance would only cover the policyholder until they reach 100 years old. This would offer much more than term life insurance. It would have a death benefit, and along with that investment component. With this type of insurance, the policyholder will be able to borrow against the money they have already accumulated, for any purpose.

Variable universal life insurance, or what is better known as a VUL. This is the most extensive type of insurance and the one we recommend the most. Like whole life insurance, it would have a death benefit, an investment component, and also the capacity to borrow against the accumulated amount of the policy.

But on top of this, it would also include a disability benefit and living benefits. The policyholder can choose to invest their money in stocks, bonds, or money market funds. This will increase the amount of the investment substantially.

Your family needs to have an insurance policy. Consider this: in case of death or sudden disability of the policyholder (who is more often than not the breadwinner of the family), the income that comes in to pay for monthly bills and expenses will be compromised. Having an insurance policy will help you be able to still cover the costs despite the loss of income.

There are many trusted insurance companies. Find a good financial adviser and discuss your family’s needs with them. They will be able to adjust your life insurance policy to fit those needs to make sure that you will never have to face financial instability when things go south.