Term Life Insurance

[ikaela]

Term insurance is the cheapest kind of insurance there is, because all it is is plain and pure insurance.

I tried looking for proposals so you can see the difference between plain term insurance vs. the kind with cash-back, but I can't seem to find any apples-to-apples comparison.

Anyway, even if the cost of insurance is exactly the same in a term insurance policy and a cash-back policy, this fact remains: in term, you do not have to give more of your money to the insurance company just for the exact same coverage.

In the cash-back policy, what they are basically doing is getting your money NOW, then make money off of it within those 10 years, and then return your money to you with 0% interest. 0% interest in 10 years! Talo ka pa ng bank savings account! And it's not even the same amount anymore because it's already been eaten away by inflation. Who would want to be ripped off like that?

So if you are looking for 10-year coverage, just get term. That is more than good enough. Then whatever extra, you invest it yourself for future yourself.

[ampere]

Hi! If I may please in Manulife, for YRT (yearly renewable term) of a 33 years old , female non smoker, premium is 8,780.00 annual for a 1 million coverage. WITH Critical Illness of 1M and if death is due to accident, beneficiaries will get 2M benefit.

Critical Illness benefit when claimed does not forfeit the insurance coverage

hi! kasama na ba sa premium yung Critical Illness at Accidental death benefit sa 8K premium? nagpa-quote din kasi ako i contacted Philamlife, Sunlife and Manulife pero Manulife lang ang matyaga na nakipag-correspond sa akin yung dalawa dedma. got my quotation pag 2M face amount for each YRT, Accidental Death Benefit (ADB) and Enhanced Critical Illness Rider(ECIR) more than 17K yung premium kapag ginawang 1M lang yung ECIR 12K+ premium both are renewable until 67 years old and can be converted to permanent life.

what do you think mga sis ok na ba yung quote na ganyan for 33 yrs old non-smoker?

[mxherr5]

You really won't be able to decide if that's good without
checking the competition.

Go to this group on FB: pinoyinsurancetalk

Mga insurance agents ang members karamihan..
Uulanan ka ng proposals

[IronLady]

Query lang.. Do you still get another term life insurance kahit pa may life insurance benefit ka na from your
company? Im thinking of getting life insurance din sana.. Yung variable.. Yung iinvest nila somewhere (securities).. Yung like when your 45 na pwede mo na makuha yung pera.. Not sure kng principal lang [textspeak!] makukuha or may gains na din dun.. I honestly dont know much about it pero parang ganun yung pagkakasabi sakin.. Kaya iniisip ko kung maginvest din ba ko sa ganto.. Or mas okay pa din sa mga mutual funds ko na lang ilagay ang pera ko.. Objective ko lang naman is capital preservation (taking into account the inflation) and/or appreciation..

[mxherr5]

I did.
I used to have insurance coverage from my previous employer
pero when I switched jobs I lost that.

Just this year though, my employer got us insurance coverage
but still, you can't say you'll always have insurance coverage
from work.

[PetiksPinayInvestor]

Hi Sis IronLady,

Happy new year!

When your objective is capital preservation or appreciation then do not "put your eggs in one basket", ika nga. Or get your eggs in one basket for that matter.

What you have are options.

A) stock market

B) mutual funds

C) insurance that are "participating". Participating just means they are earning.

You have 2 options:

* traditional na "participating", which means insurance earning through dividends and guaranteed cash values

* VUL, which means insurance earning through the investment component tied to it, which is basically a mutual fund.

Simply put, options A and B are subject to estate tax when the person insured expires.
Only investments tied with insurance can be tax exempt, especially when the beneficiary is irrevocable.

Yan ang main benefit investment tied with insurance: tax shield on estate taxes.

[IronLady]

^^thanks sis.. Kung sa bagay.. Pano kung retired na wala ng ganung insurance and mas mahal kung kukuha ka ng thunders ka na.. Hehe! Dapat pala may back up din..

^happy new year sis! 😊
Oh sis so yun pala yun.. I actually want to diversify nga my investments kaya nagtatanong tanong din ako about insurance. Yun lang kasi ang insurance noon e basically insurance lang. Kelangang may mangyare muna sayo bago maclaim or at least after ilang yrs bago makuha yung cash.. Buti ngayon meron narin palang mga nage earn kahit pano.. In that case it really is an investment na.. Sis anong mas type mo yung traditional or yung vul? To protect from inflation mas okay yung vul noh? Thou depende din kasi sa mArket conditions. Would i have the option din to pick kung saan nila iinvest yung sa insurance ko? Kasi yung mf ko sa stocks tapos nagma maintain din ako ng stocks kung gusto ko diversify dapat ata sa iba nakainvest yung sa insurance na yun..

Ask ko na din yung sa traditional, makakareceive ka ng cash? After ilang years bago mareceive and every when?

[cheezecake]

try nyo check yung maxi something ng sunlife 10years fix payment. I think its better than term insurance

[PetiksPinayInvestor]

Sis IronLady,

Q: Sis anong mas type mo yung traditional or yung vul?

A: Both. Meron ako nung both VUL type and traditional na may endowment. I like the potential growth of the investment sa VUL lalo na kung 10 yrs or more na palalguin ang pera sa mutual fund component ng VUL. I like the guaranteed cash returns naman ng traditional regardless of the market conditions. Dadating yun no matter what kasi guaranteed.

There is no single insurance that will fit all financial needs. Nagkataon na I was done paying some so I just load up my insurance. Di ako nagdedefault sa payment. Sakin kasi in the long term, kung dadamihan mo na rin lang ang assets mo (bahay, investments, savings), lalaki rin ang estate taxes mo. So hangga't kaya, magpa insure. Pano pa kung magka dependents like mga anak? E di hindi sapat ang insurance na pambayad lang ng estate taxes.

The earnings I get are just bonuses while I am still alive. Insurance is just one avenue where we can get earnings.

Q: To protect from inflation mas okay yung vul noh?

A: Not necessarily. You still need to monitor the performance of the mutual fund tied to the VUL insurance. Kasi inflation changes. So determine muna what is the inflation rate, saka mo check na yung kinita ba ng investment is mas malaki nga sa inflation. Who knows, 10 yrs from now baka hindi lang 5% ang inflation rate. Baka 8 or 10% na? So dapat mas mataas jan ang kinikita ng fund. Kaya tayo minomonitor din dapat yan kahit man lang every year na nag anniversary ang insurance policy.

Q: Would i have the option din to pick kung saan nila iinvest yung sa insurance ko?

A: Sa Sun Life ang alam ko is meron kang option to change funds in a year, pero may limit. Kung say nalagpasan mo yung limit number of switch, may fee na

Q: Kasi yung mf ko sa stocks tapos nagma maintain din ako ng stocks kung gusto ko diversify dapat ata sa iba nakainvest yung sa insurance na yun..

A: I want to share "Pesos and Sense Explains: Minimizing Losses" - https://www.youtube.com/watch?v=wzCnra_ZhlI

Q: Ask ko na din yung sa traditional, makakareceive ka ng cash? After ilang years bago mareceive and every when?

A: Depends on the terms of the policy. Pwedeng cash or pwedeng papa accumulate mo. YOu can choose which you prefer. If you paid for 5 yrs, may iba na makukuha mo na yung cash (or endowment) on the 6th yr; may iba 8th yr pa. As far as I know you receive endowments every other year. May iba for life ang endowment as long as buhay ang insured; may iba may termination date or maturity date na tinatawag. You may want to shop around and choose which one makes you happy

[IronLady]

^wow! Thanks a lot sis for answering all my queries! 😊

[PetiksPinayInvestor]

^ a pleasure doing so

[gypske]

Naloka ako. I posted in pinoyinsurance talk and ask for a term insurance na proposal since it's what my brother wanted dahil may life insurance na siya. Ulanin ba naman ako ng VUL na proposal.

Though may mga nag pass naman ng term insurance proposal, mostly philam and sunlife. Di namn nilagyan ng critical illness rider. When I ask for follow up di na nagreply.

Anyone knows a manulife agent? and philam life? Pakipm naman ng email address ng agents nyo.

[PetiksPinayInvestor]

^ PM sent

[Chloee]

Hi sisses, I am planning to get term life insurance para yung ibang spare money ko mailagay ko sa uitf or mutual fund...pwede po pa pm ng mga agents nyo na nag po provide ng term life insurance.

Many thanks

[ikaela]

^^^gypske, nako, ganyan na ganyan experience ko sa term insurance. I'm sorry to say but it gets worse kapag face-to-face mo na kausap yung mga insurance agents. They mislead you and some even outright lie: kesho hindi ka na daw pwede mag-renew ng term insurance mo kapag magkasakit/ma-disable ka, na hindi ka as protected as in a VUL (kahit na pwede ka mag-attach ng complete riders, like accident, critical illness, hospital income, and waiver of premium), at hindi ka i-pra-priority tulad nung may mga VUL.

Bihirang-bihira ang agent na may tiyaga magbenta ng term insurance. Parang ikaw pa ang mahihiya bumili ng term insurance kasi yung cheap lang yung bibilhan mo.

Well, that was my experience. Swerte if you get an agent who believes in term insurance from the get-go.

I wrote about my experience here pala, if anyone's curious. nahalungkay ko pa.

[conp_]

Hello!

Ask ko lang if any of you has a Manulife YRT policy. Medyo magulo yung agent na nakausap ko kasi. The proposal doesn't say much, puro refer to the agent. Eh nung tinatanong ko, paiba iba sagot. Haha. Humihingi ako ng prospectus, wala daw siya. Tingnan ko na lang sa website ni Manulife, eh sa website may mga questions ako na hindi din nasagot. Haha. Then sabi niya, hindi na din daw kasi masyado mina-market ni Manulife eto. Ha? haha.

Sabi niya nung una, every year daw kapag marerenew, you have to prove your insurability. At may chance na hindi maapprove. Pero after much discussion, pwede naman daw maapprove so long as hindi naman terminal illness.

Kunwari, may symptoms ka na ng cancer (pero hindi pa na-diagnose), then sakto na magrerenew ka na ulit ng term insurance policy: Makaka-claim ka na ba kahit "symptoms" pa lang at wala pang final diagnosis?

I'm interested in getting Manulife's YRT product kasi super cheap nga. Around 6K per year with critical illness coverage worth 1M. I also got a LifeAssure proposal, mas mahal tapos if magkacritical illness claim ka, terminated na agad yung policy.

[mxherr5]

I have it and there's no such requirement to renew the policy.

Here's what it says on the policy contract itself.
You'll only need to prove insurability when reinstating.

RENEWAL
The Policy may be renewed by payment of premium at the time of
renewal, in accordance with the Schedule of Premiums shown on
page 3 of this Policy. Unless renewed as herein provided, this Policy
shall terminate at the expiration of the period for which the premium
has been paid.

REINSTATEMENT
Within three years after default in payment of premiums, this Policy
can be reinstated by redating, effective on the approval date of the
Company and upon receipt by the Company of (a) evidence of
insurability satisfactory to the Company and (b) payment of the
current premium at the rate applicable.

If you pm me your email address, I could provide you with
the contract.

[ikaela]

^^ I have it too. Yan din sabi sa akin ng agent. Na kailangan magpa-medical exam every year. It's not true, of course. Manulife's yearly renewable term insurance is guaranteed renewable even without evidence of insurability.

I think you'll also only be required to undergo a medical exam if you will be increasing your death benefit.

As for the critical illness coverage: each illness has a specific definition. And it is very strict. Kunwari sa loss of limbs -- you have to lose at least 2 (!) limbs before you can claim. For burns, it must be third-degree burns and cover at least 20% of your body. If you get a heart attack/stroke, it must have irreparable damage to your brain (or some other neurological function). If you get HIV, you must've gotten it through your normal occupation (WHAT?) before you can claim. Cancer -- dapat tipong stage 4 cancer ka na bago ka maka-claim. Meron na early stages of cancer coverage, but it costs $$$$$$$.

The definitions are different among insurance companies, but they don't vary by much. Best ask for a critical illness policy before you buy.

[mameejhy]

Which has the best/ less hassle term insurance coverage among the companies in the Philippines?

[conp_]

Thanks, mxherr5 and ikaela for your response!

My no. 1 priority is to have a medical fund. I checked some long term health insurance products like Kaiser pero parang ang liit. I was advised by a known financial blogger to just invest in pooled funds and make it as my health fund.

Now the reason why I'm getting a term life insurance really is for critical illness coverage (I don't have any dependents kasi). Ngayon ko lang nalaman na in most companies, bago ka pala maka-claim ng critical illness benefit, dapat yung tipong malubha na yung sakit mo. So kung early stages pala, maco-consume mo na din yung health fund mo. Kklk.