8 Things to Consider When Getting a Life Insurance

4 November 2022
8 Things to Consider When Getting a Life Insurance

Many Filipinos consider life insurance more of a burden than as a safety net to protect them from financial ruin in the event of an untimely demise. Fortunately, these days, more and more Filipinos, particularly in light of the current economic climate, are beginning to recognize the wisdom of putting money aside for the future, which helps life insurance companies' new business annual premium equivalent.


Financial stability is vulnerable to the curveballs of life. In the same way, your funds might be exhausted.


A sudden and unexpected event like an accident, a lasting handicap, a severe disease, or death may destroy all you've worked so hard to build. And this is when life insurance companies enter.


In case you're considering buying a life and comprehensive health insurance plan but aren't sure whether now is the perfect moment, we've listed a few of the things to think about before getting one from the best life insurance company in the Philippines.



What Factors to Check in Choosing the Best Life Insurance Philippines

Although life insurance is widely recognized as a good financial decision in the Philippines, many Filipinos still have doubts about when to buy these policies. This article presents a checklist of things to think about before buying life insurance if you're interested in applying for it.


1. Age

Although there is no ideal time to get insurance, a person's age does have a role in the cost of their premium. In fact, life insurance is something that you should look into starting in your twenties or thirties, according to the experts.


In another study from a financial advisor, Investopedia even suggests that purchasing insurance from a life insurance company before the age of 35 would be the ideal age to get the best rates as your rates may be less expensive now compared to when you are older.


In most cases, a person's eligibility for a particular life insurance policy will be determined by their chronological age. As a result, premiums increase with policy age.


It's important to understand that waiting for the "perfect moment" to obtain life insurance in the Philippines might result in ever-increasing prices. This is because the chance of the insurance company needing to pay out on the policyholder's death rises with the passage of time.


2. Number of available dependents

Having life insurance protects your loved ones from economic disaster in the case of your untimely death. Having loved ones who would rely on you financially is a strong argument for purchasing life insurance.


In the Philippines, dependents may utilize life insurance proceeds to cover the inheritance tax that is due upon the policyholder's death, and these are considered non-taxable. If others are counting on your income, you should purchase life insurance. Those you choose as beneficiaries may include your siblings, children, elderly parents, or your spouse.


Alternatively, you may also put off buying life insurance and put the money to better use in the stock market or other investments if you don't already have any.


3. Health record of your family

If cancer, diabetes, or heart disease run in your family, it's important to protect your loved ones financially by purchasing life insurance. Even though it's unpleasant to consider, a poor health history might raise the cost of life insurance later in life since it raises the likelihood that you'll need medical attention for issues as you age.


In the Philippines, medical emergencies are covered by certain forms of life insurance, particularly those with critical illness coverage. That's why it's recommended that you look into getting a life insurance policy that also includes health and protection services.


4. Financial objectives

If you own a significant amount of wealth and would want to safeguard it against the financial consequences of your untimely death or long incapacity, you should consider purchasing life insurance. When you purchase insurance from life insurance providers in the Philippines, not only do your loved ones benefit, but you do as well. Further, it aids in the safeguarding of valuable possessions.


5. Current financial status

Purchasing life insurance is done with the intention of providing for one's dependents in the event of one's untimely death or serious illness. This is why your income level is a crucial factor in determining the best life insurance coverage for you. Make sure you have some money set up in case of an emergency before shelling out for life insurance plans.


Since life insurance often doesn't pay for expenses like replacing a broken appliance or paying for extended hospital stays for a sick kid, it's important to set aside money in case of an unexpected financial catastrophe.


If you have already established your financial independence and have saved money in an emergency fund, then it may be time to consider purchasing life insurance. You and your loved ones can then have peace of mind knowing that the future is secure with your life insurance policies.


6. How much you can afford

It's wise to get life insurance if you can afford to make a long-term financial commitment. Make sure you'll have enough money each year to pay your premiums for your chosen life insurance corporation before you apply for life insurance in the Philippines.


The annual premiums may be anything from Php 15, 000 to Php 100, 000, and even more if you want to add on optional extras. Over a period of five to thirty years, it comes to an average of Php 60, 000, that is approximately Php 5, 000 every month, depending on your chosen affordable premiums.


7. Personal habits

The decision to get life insurance is heavily influenced by one's lifestyle choices, since these choices may have far-reaching consequences for one's health. This implies that you may save money on health insurance by adopting healthy lifestyle habits like going to the gym frequently and eating well. This is because leading an active life reduces the possibility of catching an illness and, therefore, can lower your health protection premiums.


8. Knowledge of various life insurance types in the Philippines

It's important to consider your financial goals, the length of time you'll need insurance, and your budget when choosing an insurance policy. In the Philippines, there are essentially three distinct kinds of insurance that top life insurance companies offer: term life insurance, whole life insurance, and VUL insurance.


Best life insurance companies to consider

Below are some of the life insurance provider in PH:

  • Sun Life Insurance
  • The Manufacturers Life Insurance Company (Phils.), Inc.
  • The Insular Life Assurance Company Ltd.
  • Pru Life Insurance Corp.
  • Philippine Axa Life Insurance Corporation


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Taking care of your physical and financial wellbeing can make you happier and more successful overall. But you can maximize and foolproof all of these if you prioritize an investment that can last a lifetime and can even be transferred to the next generation.


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