Frequently Asked Questions
Life Insurance is a contract between you and a life insurance company, which provides your beneficiary with a pre-determined amount (called face amount or insurance coverage) in case of a conditional event during the contract term.
Buying insurance is extremely beneficial for breadwinners of the family. In case something unfortunate happens to you, your family can remain financially secure because of the life insurance policy that you have purchased.
Life insurance policies are usually perceived to be of use only upon the death of the owner-insured. However, a number of life insurance plans today are also used as tools to effectively plan for retirement, to invest and grow wealth, to save up for a dream house or a dream vacation and to prepare for children’s future studies.
An Endowment Policy is a combination of savings along with risk coverage. These policies are specifically designed to build up your savings and accumulate wealth while at the same time, cover your life.
This type of insurance is issued for specified time periods (usually for short periods only such as 15 or 20 years) during which you pay a regular premium. If something unfortunate happens to you during the term or life of your policy, your beneficiaries will receive the sum assured (face amount) along with the accumulated benefits. If you outlive your policy’s term, on the other hand, you will receive the sum assured along with accumulated bonus additions (if any).
Term Insurance is the cheapest and the simplest form of insurance. Here, we agree to pay your beneficiaries the sum assured (face amount) in the event of your untimely demise. However, if you survive until the end of the policy term, no amount will be payable to you. This policy has no savings component and the premiums you pay are purely a cost to buy your life insurance coverage.
This type of insurance is recommended if:
- You are looking for a low cost life cover without any savings benefits attached.
- You are at that stage in life where you want to avail of protection coverage but you cannot afford to pay high premiums due to low income or other financial priorities.
Variable Universal Life Insurance (VUL) is a type of cash-value life insurance that offers both a death benefit and an investment feature.
The premium amount for a VUL plan is flexible and may be changed by the consumer as needed, though these changes can result in a change in the coverage amount. The investment feature usually includes “sub-accounts,” which function very similar to mutual funds and can provide exposure to stocks and bonds, thus diversifying one’s investment portfolio. This offers the possibility of an increased rate of return over a normal universal life or permanent insurance policy.
In order to buy a life insurance policy, you must pay premiums to the life insurance company. The amount of premiums payable depends upon the type of policy, term of policy contract, face amount and your insurance age.
For most insurance plans, you have the option to pay monthly, quarterly, semi-annually, annually or pay once only depending on your budget.
No. There are insurance plans that can provide you benefits for your retirement, education of your kids (if any), investment or savings. With these plans, you can receive benefits that you can enjoy while you are still living.
Philam Life has consistently been committed to empowering Filipinos achieve their dreams for more than 60 years. Our company performance and achievements for more than six decades lay testament to our commitment to our valued clients.
Inspired by the extraordinary stories of our policyholders and beneficiaries, our 2011 multi-media campaign features OFW Daughter Deorie Caraca and Cancer Survivor Connie Dizon, just two of the many real-life stories of how the country’s number one life insurer was able to help its policyholders and beneficiaries.
Deorie is one of 40,000 students who benefited from Philam Life’s education pay-outs. Her dad invested in an educational plan, Scholar Gold, for her and her sister Ginger. This plan will provide cash benefits every semester for their college education.
Connie is just one of thousands of policyholders who was able to rely on Philam Life’s insurance plans. Connie’s policy is Excelife Gold with Lifeline rider that provides cash for hospital and medical expenses upon diagnosis of a critical illness like cancer.
By consistently delivering on its commitments to its policyholders, Philam Life continues to be one of the most trusted names in the Life Insurance Industry.
Riders, also called optional or supplementary riders, are additional benefits that can be attached unto your basic life insurance plans. These features give you the benefit of increasing your coverage in case of certain events.
For instance, if you have taken an Accident Death Benefit rider and the cause of your death is due to an accident then your beneficiaries can get an additional sum on top of the policy’s face amount.
There is a variety of riders addressing different contingencies like Critical Illness, Hospitalization Benefit, Permanent Disability Benefit, etc. There are also riders available that waive your future premiums in case of death or disability of the payor. This is extremely useful for parents paying for their children’s educational plans.
These riders come at an extra cost and different plans have different riders that can be attached. Check our Products and Services pages to see which riders you can attach to your basic plan to increase your coverage.
You can pay annually, semi-annually, quarterly, monthly or via single-payment.
Some plans give you the option to pay the premiums only for a limited time and not for the full policy term.
Top-ups are one-time payments for VUL (investment-linked) policies. You have the flexibility to make an additional investment through a top-up, which is over and above your regular premium payments whenever you have extra cash on hand. You can make a top-up at any time while your policy is in force. The applicable norms for top-ups may differ for every product. You may get in touch with your Philam Life Financial Advisor or through our Customer Hotline at (02) 528-2000 to know more about this feature.
We offer a grace period of 31 days after the payment due date for paying the any outstanding premium.
If you fail to pay the premium on your policy within this grace period, your policy will lapse. You can revive your lapsed policy by paying your outstanding premium. You may get in touch with your Philam Life Financial Advisor or our Customer Hotline at (02) 528-2000 to know more about reviving your lapsed policy.
Yes. The premium that you pay on your insurance policy is mainly dependent upon two things - your age and the life of your policy. The younger you are, the lower is your insurance premium amount.
Based on mortality and morbidity tables, people at younger ages are healthier physically. Therefore it is advisable to buy insurance at an early age to reduce the cost of insurance. Nevertheless, the insurance policy your will purchase may still require you to undergo a medical test.