The best life insurance companies in the Philippines cover the damage associated with the insured by paying the costs. It can be medical or property costs.
Life insurance companies do not only provide coverage for life, but they also cover the insurance policyholder’s damaged property. They pay a sum of money in exchange for a premium after a set period.
Read on to learn the Top 10 life insurance companies in the Philippines with their detailed coverages, price, and features.
Key TakeAway
- What life insurance policy is and how to buy it.
- Factors to consider before buying a life insurance policy.
- The list of the top 10 life insurance companies in the Philippines.
What Is Life Insurance Policy?
Life insurance is the contract between an individual or a business organization and the insurance company over their lives.
It is an authorized policy that covers the claims on an insured life and family if the policyholder dies.
The life insurance policy covers the cost associated with the insured based on their agreement: pays a sum of money to the beneficiary even when the policyholder is dead.
Types Of Life Insurance Policy
Life insurance policies provide claims for different terms.
1. Term Life Insurance
Term life insurance is temporary life insurance that provides coverage for a short period (between 10 and 30 years). It is the cheapest life insurance and provides financial support to the beneficiary until the terms end if the insured dies.
2. Whole Life Insurance
It is permanent life insurance that provides coverage for a lifetime. The cash value and premium are fixed depending on the policy of the insurance company.
The premium may extend till the insured dies while some life insurance policies require a premium for a certain number of years.
3. Universal Life Insurance
It is permanent life insurance for long-term coverage. It allows the growth of money at a fixed interest rate or current market rate, thus accumulating cash value. It includes variable universal life insurance and indexed universal life insurance.
Life Insurance Companies
The life insurance policy covers the needs of the insured based on the agreement. It also provides other benefits such as:
1. Financial Support
Having a life insurance plan provides long-term financial support or service to the insured and his family.
It provides a huge amount of money to financially support the family of the policyholder during his or her demise.
The plans include taking care of the family’s expenditures, ongoing debts, and future goals after the death of the policyholder.
2. Death Benefit
The life insurance policy covers unfortunate happenings in the insured life. It pays the amount of money equivalent to the sum promised in the contract with additions.
3. Loan Payment
Another benefit of having a life insurance policy is that it covers the loan associated with the insured depending on their agreement.
The insured can take some money from the investment part of the life insurance policy to pay for the debt.
Such a plan offers whole life insurance with cash value over time. You can borrow at a low rate of interest against the cash value.
4. Life Stage Planning
With the help of a life insurance policy, each member of the insured family receives coverage for their stages of life.
It has a child plan for the child’s education and marriage, a pension plan for retirement, etc.
5. Wealth Creation
Having a life insurance policy encourages savings and creates wealth. You can invest your premiums in unique funds depending on your risk appetite thus, building your wealth.
Disadvantages Of Life Insurance Policy
There are some drawbacks to having a life insurance policy which includes
1. Limited Offer
It is not all plans included in the policy that is provided. Some insurance companies do not provide all the costs associated with an insured life due to the high costs involved, which may affect the family negatively.
The initial critical medical condition of a policyholder is not considered and if an insured outlives the insurance cost, no help will be given to the family during his or her death.
2. Expensive
One of the drawbacks of buying a life insurance policy is that it is expensive based on the insured age, health status, and lifestyle.
Health status plays a significant role: the younger and healthier an insurance policyholder is, the lesser premium he pays while the older with health issues pay higher.
3. Poor Coverage
Some insurance companies do not provide outstanding coverage due to poor technology which may limit the coverage the insured is supposed to receive.
How Life Insurance Policy Works
Life insurance policy works similarly to other insurance policies but it specifically covers the insured life even after death.
It renders a sum of money as a death benefit to the beneficiary in exchange for the policyholder’s premium after his death. The deceased family uses the money to support themselves financially.
The policy also covers the deceased children’s future, education, and ongoing debt. This is to ensure the beneficiaries live the best life as promised to the insured.
Factor To Look Out For When Buying A Life Insurance Policy
To purchase a life insurance policy, consider the following.
1. Insurance Needs
The initial thing to consider before buying any life insurance policy is what you expect the company to cover for you.
Analyzing your insurance needs helps you to go for the insurance company that provides you with your needs.
2. Premium
Before buying a life insurance policy, assess if you can afford to pay the premiums for the whole policy term. For instance, if you cannot pay a high premium, do not go for savings-cum-protection plan.
3. Claim Settlement
Evaluate how efficiently and effectively the life insurance company settles claims. If there is any delay in settling a claim, ensure you find the cause and avoid it to receive a full claim settlement.
4. The Insurance Policy In The Subsequent Years
With the help of insurance agents, analyze the final state of the policy in the following years. This enables you to avoid unnecessary financial risks.
5. Relate Each Insurance Policy
Comparing each insurance policy gives more insight into the plan you want and the insurance company to go for.
How To Buy A Life Insurance Policy
You can buy a life insurance policy online or in your locality based on your choice. However, after analyzing what your insurance needs are, the plan to go for, and the insurance company to close the contract with
1. Get Multiple Life Insurance Quotes
Life insurance quote unveils the covers it provides. Some life insurance companies do Iot include everything on their site such as premiums, but getting a quote discloses all the information to the insured.
You can get the quote online or in the locality.
2. Fill Out The Application Form
After getting the quote, fill out the application form providing accurate information. Thereafter, submit. You will get an interview call for verification. However, a life insurance exam follows to discern the activities happening in your life including your medical status. It gives more information on the coverage to provide for you.
3. Wait For Approval
After the assessment, wait for the final verification. When you are approved, you will be notified through email that your plan is available.
The List Of The Top 10 Life Insurance Companies In The Philippines
Life insurance companies are authorized or licensed companies responsible for delivering the contract between an individual or business organization and an insurance company.
They pay a sum of money to the beneficiary of a policyholder during his or her death based on the agreement between them and the policyholder.
Moreover, the top 10 life insurance companies in the Philippines are explained with the various claims they settle.
1. Manulife Philippines
Manulife, known as Manufactures life is a life insurance company in the Philippines that focuses on providing all types of permanent insurance plans comprising, education and pension, employee security, student personal accident, medical and other kinds of insurance plans irrespective of age, and health status.
Features Of Manulife Philippines Insurance Company
Here is what Manulife Philippines is known for.
- A large Number Of Workers: It has 37,000 employees and 118,000 agents.
- Asset: It has a total asset of CA$ 917.6 billion as recorded in 2021.
Price
- Premium: Its net premiums are CA$ 39.1 billion.
- Closing Cost: It has a closing cost of $17.66
Pros Of Manulife Philippines
- It provides plans designed for the beneficiaries.
- It gives a rewards program that enables customers to save on premiums and earn points.
- Manulife offers competitively priced permanent life insurance offerings.
Cons
- The term option is limited.
- Their products are expensive.
- There is a delay in the underwriting process.
2. Allianz PNB Life Insurance Company
Allianz PNB began offering insurance products in the Philippines in 2001. It is a globally recognized brand in the financial service sector and is serving over 80 million retail and corporate clients in 60+ countries.
Features Of Allianz PNB Life Insurance Company
- Flexibility: Allianz PNB is flexible in its premium payment. It could be monthly, quarterly, semi-annually, or annually.
- Trade Credit: Allianz offers a wide range of solutions to manage commercial credit between companies.
- Asset Manager: Allianz is the largest asset manager worldwide with an active investment technique and over €1960 billion in asset management.
- Risk Consultation: It offers tailored business insurance risk and consultation for companies.
Price
- The annual premium is Rs 15,000
Pros
- It provides affordable insurance plans.
- The brand they provide is trustworthy.
- It offers a variety of life insurance products, giving the policyholder the chance to choose the plans he or she wants.
Cons
- It does not have an online quote. To get the quote, you will have to contact the insurance agent.
3. United Coconut Planter Life Insurance Company
It is the largest Filipino-owned stock life insurance company. It was established in 1966 and deals with underwriting.
It provides services for health care, mutual funds products, and non-life insurance such as education, protection, pension, etc.
Features
- Health Care: Cocolife is known for its healthcare service to its customers. It ensures the policyholder is in sound health throughout the contract.
- Mutual Funds: It offers mutual funds.
- Non-Life Insurance: It protects the insured from natural disasters, property damage, etc.
- Ranks Higher: Cocolife is the largest Filipino-owned stock life insurance company and the first ISO-certified. It ranks higher among the top life insurance companies in the country, protecting the eighth spot in net worth with P4.
Price
- Maximum Benefit Limit: PHP 100,000, PHP 125,000, and PHP 150,000.
- Annual Premium: Php 10,350.80, Php 12,420.96, and Php 14,871.21.
Pros
- It provides a disability income rider.
- It has a wide range of policy offerings which makes the company reliable and trustworthy.
- It offers excellent customer service.
Cons
- It has no online quote.
- It has limited information on the site.
- It has only a 20-year term.
4. BDO Life Insurance Company
BDO was initially called Generali Pilipinas, then it changed to BDO when the BDO uni bank acquired the company in 2016.
It offers investment and financial services such as education, health care, estate planning, etc for the well-being of its customers.
Features
- Long-Term Investment Tool: BDO uses a long-term investment tool that possibly gives higher returns.
- Fund Manager: It has a professional fund manager who manages their money thus, keeping it from unnecessary risk.
- Flexibility: It creates access for the customers to choose which fund to deposit money at a unique risk profile and time boundary.
Price
- The Total Premium Income: P18,291, 932, 155
- Assets: P81, 054, 673, 167
- Net Worth: P10, 544, 707, 624
- Paid-up Capital: P1, 593, 132, 400
- The Total NBAPE: P3,401, 015, 642
Pros
- It provides extra protection services such as accidental death and disability benefits.
- The investment tools are doubled.
Cons
- The maturity date option is at the 20th year.
- It is slow in its disbursement of compensation.
5. AIA Life Insurance Company
AIA was established in 1947 and specializes in insurance plans such as investment plans, financial plans, health, and accident care, etc.
Features
- Multiple Coverage: AIA provides multiple life insurance coverages to suit the policyholder.
- Variety Of Options: It provides a wide range of alternatives for the insured to choose a whole life cover till the age of 100 years.
- Accessibility: It allows selecting the policy terms and premium payment modes.
Price
- Net Worth: AIA has the largest net worth at P71,179,150,021 and ranks second for having the most assets at P276.3 billion.
- Net Income: P12, 989, 797, 150.
- Asset: P276, 307, 876, 721.
- Minimum Premium Amount: INR5,000
Pros
- It offers life cover together with cash bonuses.
- It gives outstanding customer service.
- It offers protection at a normal cost to provide policyholders with a fulfilling life insurance plan.
Cons
- It has a two-year lock-in period for loans.
- The assured sum is low.
- It renders insufficient benefits to achieve financial goals.
6. Pru Life Insurance
Pru Life was founded in 1848 and has a strong presence in the Philippines. It provides other services such as health insurance. It also provides the most affordable premiums in the market.
Features
- Disability Coverage: It covers any disability caused in the event of an accident.
- Flexibility: Pru Life provides different and suitable prices for each age.
- Term insurance: It offers coverage for a short period for the insured who do not want a long-term policy.
Price
The cost of Pru Life varies depending on the age. Below are the different prices for each age.
For 20-year-olds:
- P2,000-P3,500 per month (for P1,000,000),
- P3,500-P5,000 per month (under P5,000,000), and
- P5,000 plus per month (under the P10,000,000 plan).
For 30-year-olds:
- P4,000-P5,000 per month (under the 1,000,000 plan),
- P5,000-P6,000 per month (under the 5,000,000 plan), and
- P7,000 plus per month (10,000,000 plan)
For 40-year-olds:
- P6,000-P7,000 per month (1,000,000 plan),
- P7,000-P8,000 per month (5,000,000 plan), and
- P8,000+ per month (10,000,000 plan)
For 50-year-olds:
- P7,000-P8,000 per month (1,000,000 plan),
- P8,000-P10,000 per month (5,000,000 plan), and
- P15,000+ per month (10,000,000 plan)
For Term Insurance Minimum Investment and VUL
- Death Benefits: It depends on the age.
- Permanent Disability, Accidental Death, and Critical Illness:
- P100,000 and P500,000 (term insurance)
- P200,000 and P500,000 (VUL)
Pros
- It provides enough coverage for the insured needs.
- It is flexible and trustworthy.
Cons
- It is limited to individuals below 18 years of age.
- The younger the age the lesser the coverage provided.
7. AXA Life Insurance
AXA life provides a wide range of products and services such as savings and retirement products, and health and personal protection products, to the policyholder.
Features
- Short-Term Coverage: AXA life offers short-term protection that lasts 5 years.
- Flexibility: AXA life offers a flexible premium depending on the strength of the insured.
Price
- Total Premium Income: P38, 943, 171, 283
- Asset: P164, 817, 451, 848
- Net Income: P2, 750, 907, 186
- Net Worth: P8, 172, 999, 666
- Total NBAPE: P5, 299,332, 475
- Paid-up Capital: P1,000,000,000
Pros
- It covers all medical expenses.
- It allows saving for the future.
- It covers damaged properties.
Cons
- It provides short-term coverage
- It is expensive.
8. BPI-AIA Life Insurance
BPI AIA, founded in 1933 is a strategic alliance between BPI and AIA Philippines and an insurance company that seeks to provide personalized insurance to each Filipino.
It also provides a large number of financial services such as investment, retirement funds, motor insurance, etc to the insured.
Features
- Affordability: It provides an affordable premium for life protection starting from as low as P320 per month.
- Flexibility: It offers a variety of alternatives depending on the insured’s budget and preferred term. For instance, it offers a year term, a 5-year term, or a 10-year term.
Price
- It allows life protection for as low as P320 per month for P1,000,000 coverage.
Pros
- It is well-engaged.
- It has excellent customer service skills.
Cons
- Its coverage is limited to individuals below 18 years old.
- The processes involved in getting the policy are stressful and time-consuming.
9. FWD Life Insurance
FWD is a life insurance company that offers two life insurance policies an insured can buy online with no financial advice because the plans provide flexible premiums.
It provides life insurance up to the age of 100 which is an assurance of the security of the insured beneficiaries.
Features
- Long-Term Plan: It provides coverage till the age of 100.
- Flexible-Premium: It has premium payment term options for a 5-year, 10-year, or 20-year payment depending on the insured plan.
- Healthy Life Insurance Benefit: It offers 100% premium cashback at the age of 75 if there are no major illness claims.
- Wealth Creation: A policyholder can build his or her wealth through the investment plan.
Price
FWD Direct Term life insurance is 15%-20% cheaper than the market average. It provides S$400,000 for death cover.
The term life plus cost is below the average competitors (S$ 1.5 million for death and terminal illness).
Pros
- It covers death benefits.
- It provides a flexible premium to suit the policyholders.
- It provides financial security for the beneficiaries.
Cons
- It is lower than average coverage.
10. Sun Life Of Philippines
Sun Life is among the top life insurance companies that offer financial planning insurance, retirement savings, investment, etc through its agents.
It is the first and longest-standing life insurance company that has saved Filipinos for 126+ years.
Features
- Retirement Savings Plan: It provides a saving plan for retired policyholders.
- Term Life Insurance: It offers a temporary life insurance policy for customers’ benefit.
- Whole Life Insurance Policy: It provides permanent, long-term coverage to the beneficiaries of the policyholder.
Price
- Annual Premium: It ranges from P15,000 to P100,000+. It is higher for supplementary benefits.
- Average Premium: P5,000 (about P60,000 per year).
Pros
- It provides accidental coverage for the insured.
- It also provides long-term plans.
Cons
- The policy is expensive.
- Unstable Portal Update: Change in the market affects the portal update.
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Conclusion
A life insurance policy is a contract between an individual or an organization and a life insurance company. It deals with the insured’s and his family’s well-being, including coverage for accidental and medical costs, child education, etc.
A life insurance company is the authorized organization that provides coverage based on the insured plans.
Sun Life is one of the life insurance companies in the Philippines that offer different products such as financial planning, retirement savings plan, investment options, etc, and long-term plans. But, its portal is affected by the change in the market, thus, making it not the best for individuals looking for a life insurance company with a stable portal.
FAQs
Here you will find the answers to some of your questions on life insurance.
Which Is The Lowest Life Insurance Plan?
Term or temporary Insurance is the lowest insurance plan.
What Is The Average Monthly Cost For A $100,000 Life Insurance Policy?
The average monthly cost for a $100,000 life insurance policy is $11.02 (10 years), or $12.59 (20 years).
What Age Are You Probably To Buy Life Insurance?
You are likely to buy a life insurance policy at your youthful age (18 years and above) but, a 90-year-old individual is old enough to buy a life insurance policy.
Is Life Insurance Worth After Age 60?
It depends on an insured financial status after retirement. If he has no issue paying bills or providing for his needs, he probably does not need a life insurance policy.
But for the sake of his family, it is worth it after age 60.
What Deters Life Insurance Claim Settlement?
Life insurance may not settle any claim due to incorrect medical information, an error in the application, a lapse in premium, or mistakes in the beneficiary’s name.
Hence, ensure you provide accurate information before submission of the policy form.
References:
https://grit.ph/life-insurance/&ved
You can learn more from the video below:
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