The Best Affordable Term Insurance in the Philippines

Here are The Best Affordable Term Insurance in the Philippines

Term insurance is a great choice for individuals seeking protection on a limited budget. It is more affordable than other types of insurance because it only provides life insurance coverage and does not have any cash value or fund value. As a result, term insurance offers extensive protection at a low cost.the Best Affordable term insurances in the philippines essential;

What is Term Life Insurance?

Similar to other insurance plans, term insurance offers financial protection in the event that a household loses its primary income earner. However, the main difference is that this protection is only provided for a limited period of time. Term life insurance policies can be purchased for durations of 1 year, 5 years, 10 years, and so on. Typically, these policies can be renewed, but at a new and increased premium rate that reflects the insured’s attained age.

To learn more about what term insurance is and how it works, please watch this brief video.

Definitions You Must Know

Before we explore the topic in more detail, it’s important to become familiar with some common terms. These terms will be used throughout this post and can help you grasp the overall concept of term insurance.

Face Amount

This is used to calculate the amount of money that your beneficiary can receive as a death benefit or other benefits from the plan.

Term –

To rephrase the statement: “It pertains to the duration of time wherein your premium remains unchanged. For instance, if you opt for a 5-year renewal term with a cost of Php 50,000, it indicates that you need to pay Php 50,000 annually for the succeeding 5 years.”

Premium –

This phrase means that “the premium is the cost you have to pay to obtain life insurance coverage.”

Rider

The statement means that it refers to an extra type of insurance coverage that provides protection specifically for unexpected events such as accidents and serious illnesses.

Beneficiary

“It refers to the person or organization chosen by the policyholder to receive the benefits.”

Renewable

The person who has taken out the insurance policy can choose to renew it once the agreed period has ended.

Convertible

A term insurance policy that can be changed or converted into a whole life insurance policy or a variable universal life insurance policy is called a convertible term insurance plan.

Why is term insurance for you?

ou may currently be uncertain about whether to choose VUL or term insurance. To assist you in making a decision, I have outlined the reasons why purchasing a term life insurance plan is more appropriate for you. If you identify with some of the reasons listed below that align with your current circumstances, then a term insurance policy may be the best choice for you.

Therefore, here are the reasons why term insurance may be the right fit for you.

Newly Married Couple or Low Income Earner

“Insurance is a fundamental necessity that even newlywed couples should consider to establish a solid financial footing. However, it can be challenging to do so when factoring in new financial responsibilities such as a mortgage, bills, groceries, and other expenses. This is where term insurance can be a viable option, particularly for those with low incomes as it is relatively affordable.”

Term Insurance as Mortgage Redemption Insurance (MRI)

An MRI is a requirement by both Pag-ibig and banks before approving a housing loan. To meet this requirement, term insurance can be used, with the bank where the mortgage was obtained being elected as the primary beneficiary. In the event of the debtor’s death, the remaining loan will be paid using the insurance proceeds, and any excess will be given to the debtor’s heirs.

Without an MRI, the debtor’s house may be foreclosed by Pag-ibig or the bank. However, having an MRI ensures that the debtor’s family will still have a place to call home in the event of their untimely death. While no one hopes for such an outcome, being prepared is always better than being caught off guard.

Estate Preservation Tool (Estate Planning)

Transferring a fortune to your family after you pass away can be complicated because of the estate tax that must be paid. In the past, this tax was as high as 20% of the deceased person’s total assets, but recent tax changes have reduced it to a flat 6%. Since all of the deceased person’s assets are frozen until the estate tax is paid, it is helpful to have a liquid fund available to cover the cost. One option is to use insurance proceeds, which are not typically subject to the estate tax and can therefore be used to cover the cost of the tax more quickly.

Additional Protection On-top of Existing Coverage

If someone wants to increase their life insurance coverage, they can do so by purchasing a term life insurance policy at a low cost, even if they already have an existing policy. Business owners may choose to buy multiple term policies to increase their overall coverage, especially if they don’t have the budget for a whole life insurance policy yet. Term life insurance policies can be converted to whole life insurance or variable universal life insurance at any time without the need for additional proof of insurability.

Buy Term Invest the Difference (BTID)

If you believe in the BTID approach, purchasing term insurance may be suitable for you. BTID followers prefer to keep their insurance and investment plans separate, unlike VUL plans. Separating your investments from your insurance allows you to allocate more funds towards mutual funds, UITFs, stocks, forex, and other investment opportunities. When done correctly, this approach can accelerate the process of wealth accumulation.

Why is Term Insurance not for you?

Here are the reasons why term insurance may not be suitable for you:

1. You are looking for an insurance policy that provides a savings or investment component along with coverage, such as whole life or universal life insurance.
2. You require coverage for a longer period than what term insurance typically offers. Term policies usually have a fixed term of 10, 20, or 30 years, after which the coverage ends.
3. You want a policy that will allow you to build cash value over time, which you can borrow against or withdraw from in the future. Term insurance does not accumulate cash value.
4. You are willing to pay higher premiums in exchange for lifelong coverage and potentially higher returns on investment. Term insurance generally offers lower premiums but no investment component.
5. You have health issues or a high-risk occupation that makes it difficult to obtain affordable term insurance coverage. In such cases, you may need to explore other insurance options that are more suitable for your needs.

It’s important to evaluate your insurance needs and options carefully before making a decision. Consider consulting with a licensed insurance agent or financial advisor to help you make an informed choice.

No Cash Value or Fund Value

Term insurance premiums are designed to cover only the cost of insurance for a specific term, typically a few years. After the term has ended, the policy does not provide any payout or return of premium. If you are seeking a policy that will provide some form of financial return, even a small amount, term insurance may not be the right choice for you.

Increasing Cost of Life Insurance

The cost of term insurance goes up once the term period ends. For example, if you have a 5-year renewable term policy and pay Php 10,000 each year for Php 1 million coverage, after the 5 years, the cost will increase to Php 12,000 based on your age at that time. This increase will occur every time you renew your coverage. If you’re not comfortable with this setup, it may be wise to explore other options.

Grace Period is 30 Days

Term insurance does not have any cash value or fund value. This means that if you miss a premium payment on the due date, your policy will enter a grace period. During this grace period, the insurance company will give you more time to pay the premium. However, if you fail to pay the premium within this grace period, the policy will lapse.

Sun Life Term Insurance Plans

1. Sun Life offers the highest number of term insurance plans in the Philippines.
2. This enables you to find a customized insurance plan that suits your needs.
3. Sun Life’s term life insurance plans include:
   1. Sun Safer Life
   2. Sun LifeAssure
   3. The Sun Maiden

Sun Maiden Plus Sun Safer Life (5 YRCT)

This is a type of term life insurance offered by Sun Life that lasts for 5 years and can be renewed for another 5 years. It provides a guaranteed amount of coverage equal to twice the face amount of the policy, which will be in effect until the policyholder reaches the age of 75. The policy will automatically renew every 5 years until the policyholder reaches age 74 without the need for any additional proof of insurability.

Eligibility: 18-64 years old
Minimum Coverage: Php 2 Million
Riders Attachable: Waiver of Premiums (TDB) and Accidental Death Benefit (ADB)
Paying Options: Yearly | Semi-Annually | Quarterly
Convertibility: is convertible into an endowment, whole life plans, and VUL up to age 65

Sun Safer Life Sample Quotation

it is most effective to use an example. For instance, if you are a 35-year-old female who does not smoke, the estimated yearly premium for you would be Php 10,910 based on the table. However, you still have the option to choose your preferred mode of payment.

Annual Premium: Php 10, 910
Semi-Annually:      Php 5,782.30
Quarterly:                 Php 3,000.25
Monthly:                    Php 1,018.23

If you have the budget, consider paying annually as it can result in significant savings of up to 12% compared to paying monthly.

Sun Safer Life Benefits

Here are the benefits you get from Sun Safer Life.

Death Benefit

This means that in the event of your natural death or illness, your family will receive a lump sum of Php 2 million. They can use this money to continue living their lives and achieve the dreams that you had for them.

Waiver of Premium

This means that there is an extra advantage included in the plan which ensures that your policy remains active in the event that you become completely and permanently disabled. This is because Sun Life will cover the payments on your behalf.

Accidental Death Benefit

This means that if you pass away due to an accident, an extra sum of Php 1 Million will be added to the payout that your beneficiary receives, bringing the total amount to Php 3 Million. This provides your family with additional financial support during a difficult time.

If you want a personalized quotation or a fun personal discussion, which I recommend, then you may click [HERE].

Sun LifeAssure (5 YRCT)

Sun LifeAssure is a type of term life insurance policy that can be renewed every five years for up to 59 years of age, without requiring any evidence of insurability. This policy pays out the face amount if the insured individual passes away or is diagnosed with a critical illness, whichever occurs first. Upon each renewal, the premium increases based on the insured individual’s current age.

Eligibility: 18-60 years old
Minimum Face Amount: Php 500,000
Maximum Face Amount: Php 15 Million
Riders Attachable: Waiver of Premiums (TDB) and Accidental Death Benefit (ADB)
Paying Options: Yearly | Semi-Annually | Quarterly
Convertibility: NOT convertible

Sun LifeAssure Sample Quotation

Let’s say you are 35 years old, female, and a non-smoker. Then looking at the table, your estimated annual premium is only Php 10,650.

Annual Premium: Php 10, 650
Semi-Annually:      Php 5,644.5
Quarterly:                 Php 2,928.75
Monthly:                    Php 993.96

Sun LifeAssure Benefits

Here are the benefits you get from Sun LifeAssure.

Death Benefit

Your designated recipient will receive a sum of Php 1 million pesos upon your demise, which they can utilize to pursue the aspirations you have for them and sustain their way of life.

Critical Illness Benefit

“You have the opportunity to receive one million Philippine pesos if you are diagnosed with or treated for any of the 36 critical illnesses covered. This can assist you in regaining your health.”

Waiver of Premium

This means that if you become completely and permanently disabled, Sun Life will make payments on your behalf to keep your plan active.

Accidental Death Benefit

“In the event of your accidental death, an extra amount of Php 1 million will be given to your beneficiary, increasing the total payout to your family to Php 2 million.”

Sun Maiden (5 YRCT | Female Specific Critical Illness)

This is a type of insurance called a 5-year renewable term insurance, which has been specifically created for women. It provides financial support in the event that a woman is diagnosed or receives treatment for any critical illnesses that are specific to females. Additionally, during the first 10 years of the policy, a woman can receive up to five free diagnostic and preventive procedures. These can be used once per year, starting from the first anniversary of the policy.

Eligibility: 18-55 years old (Sun Maiden) & 18-45 (Sun Maiden Plus)
Minimum Face Amount: Php 500,000
Maximum Face Amount: Php 2 million
Riders Attachable: TDB, ADB, Critical Illness Benefit (CIB)
Paying Options: Yearly | Semi-Annually | Quarterly
Convertibility: NOT convertible

Diagnostic and Preventive Procedures

Get 5 FREE diagnostics or preventive procedures during the first 10 years of your plan.

• CA 125 (Ovarian Cancer)
• Pap Smear
• Pelvic Ultrasound
• Breast Ultrasound
• Mammography
  

  Female Specific Critical Illnesses

Women with cancer in certain reproductive organs or carcinoma-in-situ may need to have surgery.

Other medical conditions such as SLE, Rheumatoid Arthritis, Severe Osteoporosis, Hysterectomy or Dilation and Cutterage, Major Plastic Surgery due to Accidents, and Skin Transplantation due to accidental Burning may also require medical procedures.

Sun Maiden Plus

You will be given an extra 2% of the face amount as a maternity benefit for each child you deliver. You can claim this benefit up to a maximum of three times. However, you can only avail of this benefit after a one-year waiting period.

Request for a Proposal NOW!

Secure the future of your loved ones by obtaining term insurance at present. Some of the terminologies used in the policy can be complex, making it challenging for an averag individual to comprehend. For this reason, I highly suggest scheduling a one-on-one consultation with a licensed Financial Advisor, which is offered for free. Rest assured that you won’t be obligated to purchase any plans from me, and it’s okay if you decide not to proceed.