7 Choices for the Best Life Insurance in the Philippines (2023)

Congratulations on your decision to get life insurance! Being insured means that you save your loved ones from the financial burden in case something unexpected happens to you.

When life throws you a curveball, you can lose your investments. Your savings may also dry up. An accident, permanent disability, serious illness or death can quickly wipe out everything you've worked hard to achieve. Therefore, it makes sense to know your options and get the best Philippine life insurance.

But before you sign a policy, compare life insurance options the same way you would compare credit cards and other financial products. You'll be spending your hard-earned money on insurance, so make sure your choice is worth paying for.

Why Compare Life Insurance Products?

What is life insurance and why are there so many options out there? How much does life insurance cost and how do you know if you are paying too much or too little?

For the uninitiated, life insurance can be a confusing and complex subject. This is why it pays to do your own legwork. Apart from learning how life insurance works and which companies offer the best life insurance in the Philippines, you should determine your needs.

Before you talk to oneEconomical advisor, research, compare your options and rate the results. Your goal is to find a policy that fits your needs and budget, specifically a policy with the most coverage at the lowest possible price. Narrow down your options by comparing insurance companies, types and policies.

See more information:What is microinsurance? I need it?

How to chooseThe best life insurance in the Philippines

First, make sure the insurance company you choose isn't likely to go out of business in five or ten years. Also, look for these three key qualities when comparing life insurance providers.

Things to consider when choosing a life insurance company

✔️ License to operate in the Philippines

Check the Insurance Commission's list of approved insurance companies^[1]to see if the companies you're looking at are legitimate.

✔️ Solid corporate history

If an insurance company has been in business for a long time and has a good reputation in the industry, you know it's worth trusting. Visit the insurance company's website to check the company's history.

✔️ Strong financial performance

The best life insurance companies perform well on the Insurance Commission's five criteria.

• Premium recipe -This is the total amount a company receives from its customers' premiums. It is also a good indicator of an insurance company's financial strength, as higher premium income means it serves many policyholders.
• Active -An insurance company's assets include all of its property that is available to pay its debts. The larger a company's assets, the better it can manage to pay its debts.
• Net value -This is the value of all of the company's assets minus all of its liabilities. Thus, an insurance company with a higher net worth is better able to withstand financial crises, as it has sufficient assets to enable its business to operate despite losses.
• Fluctuating result -Net income is calculated by subtracting a company's total expenses from its total revenue. This financial performance indicator is differentpremium income as net income reflects the actual income earned by the company from its operations.
• Equivalent to the annual New Business Award (NBAPE) -The Insurance Commission uses this metric to measure and compare life insurance revenue from new policies issued by insurance companies during the calendar year. It is the sum of the total (normal) actual first year premiums plus 10% of the individual premiums.

The best life insurance in the Philippines

What is the largest insurance company in the Philippines? Here is the Insurance Commission's latest ranking of life insurance companies in the Philippines based on premium income, assets, equity, net income and annual new business premium equivalent.

Observation:The following data is accurate as of 31 December 2021 based on the latest statistics from the Insurance Commission's official website.

👉 Life insurance companies with the highest premium income

Premium income is the income an insurance company earns from policyholder payments.^[2]Canadas solliv^[3]ranks first in this category.

👉 Largest asset based life insurance companies

In terms of assets, Sun Life also ranks first in terms of total assets,^[4]followed by AIA and the Philippines' AXA Life.

👉 Life insurance companies with the highest net worth

Equity is the value of the assets a company owns, minus the liabilities it owes.^[5]It is one of the metrics you can refer to if you want to check the financial health and current financial position of an insurance company. AIA takes first place in this category, followed by Insular Life.^[6]

👉 Life insurance companies with Majorfluctuating result

To calculate net income for an insurance company, you must take total sales and subtract cost of goods sold, selling expenses, general and administrative expenses, operating expenses, depreciation, interest, taxes, and more expenses.^[7]You can also check the net profit of the life insurance company if you want to know more about its profitability.

AIA Philippines ranked first in this category, with Sun Life in second place.^[8]

👉 NBAPE Supreme Life Insurance

New Business Annual Premium Equivalent (NBAPE), a new metric from the Insurance Commission, measures and compares new business life insurance revenue within the calendar year of life insurance companies. For this category, Pru Life has the first place.^[9]

What is the best type of life insurance for me?

What Kind of Life Insurance Should You Have? This is an important consideration, so compare different types of Philippine life insurance and the insurance protection it offers before making this purchase.

Life Insurance Matters

To determine the best Philippines life insurance policy that suits your goals and needs, consider the following factors:

• The insurance coverage you need
• How long will you be insured?
• How much you are willing and able to pay in premiums
• If you just want protection or have extra savings on your insurance

See more information:Should you take out life insurance? Consider these 8 factors

Types of life insurance in the Philippines

Here are your different options to insure yourself and your family.

👉Life insurance

What is life insurance? This type of life insurance offers protection for a specific period ranging from one to over 10 years. Death benefits are paid to survivors if the policyholder's death occurs within the policy period. If you miss the deadline, your coverage will expire and you won't get anything back.

As a pure form of insurance, term insurance has no savings element, making it the cheapest type. Life insurance in the Philippines is ideal for low-income earners who cannot afford whole life insurance but want maximum protection at minimum cost.

If you want options for the best term insurance in the Philippines, check out Manulife YRT or React5, AIA Guardian, PRULife Your Term or Sun Safer Life.

👉 Whole life insurance

Unlike term insurance, whole life insurance provides protection for your entire life or up to 100 years. and the dividends too. You can take advantage of the savings component while you're still alive to fund your retirement or your child's college education.

👉 Prepaid health cards

Unlike other types of health insurance, this one is a little more special. Similar to an e-voucher, a prepaid health card allows you to enjoy a one-time visit to selected medical facilities and specific treatments, depending on your card.

Generally, three types of prepaid cards come with one of the following coverages:

• emergency care
• Hospitalization
• preventive care

Prepaid health cards are the most affordable and flexible option compared to regular health insurance. However, they have less services and usually expire after a year.

👉 Variable Universal Life Insurance (VUL)

VUL insurancecombines life insurance and investment. Death benefits are paid to survivors when the policyholder dies. Its accumulated cash value is invested in balanced, bond, money market and/or equity funds. Therefore, VULs are ideal for long-term investment and insurance needs.

Best Investment Life Insurance in the Philippines

📌 FWD set for life

If you want to get lifetime protection and invest your money in your children's education, future business or your own retirement, you can opt for FWD Set for Life plan. You can purchase this FWD life insurance as a standalone plan or bundle it with other FWD insurance products.

FWD Set for Life Recursos:

• Life protection and investment product to build your wealth
• Coverage up to 100 years
• Loyalty bonus in your 10th year of contract and every five years thereafter
• Exemption from future payments if diagnosed with critical illness or permanent disability
• Add-ons available to customize your coverage
• Additional cash benefit in case of death before the age of 75

📌 FWD Family Hero

Another FWD life insurance product that offers lifetime protection and helps you generate passive income and grow your wealth is FWD Family Hero. Apart from the life insurance cover and investment component, it protects you and your loved ones from unexpected health problems.

FWD Family Hero Features:

• It consists of Set for Life or Manifest for life insurance and investment
• Provides critical illness protection through HealthPro
• Provides hospital cash benefit through RecoveryPro (₱1,000 to ₱10,000 per day and 100% more if confined to ICU)
• Exemption from future premiums for the insured in case of serious illness, permanent disability or death

📌 Sol Maxilink Prime

If you're looking for a life insurance policy with an investment component, check out Sun Maxilink Prime offered by Sun Life Insurance in the Philippines. It gives you life insurance coverage while growing your cash that you can use to fund your long-term goals or any emergencies.

Sun Maxilink Prime is an investment-linked life insurance product that is suitable whether you are starting a family, planning your retirement or leaving a legacy to your loved ones.

Sun Maxilink Prime Features:

• Investment-linked life insurance
• Guaranteed life insurance benefit (at least twice face value in case of premature death)
• Additional benefits and riders for extra protection
• Flexible investment options
• Some emergency fund withdrawals
• manageable payments
• Loyalty bonus when you keep your contract active for at least 10 years

See more information: Estate planning: why it's important and how to get started

📌 PRULink Plus escrow-conto

Looking for the best life insurance in the Philippines? Check out PRULink Assurance Account Plus. It is an investment-linked life insurance plan that provides maximum protection while helping you achieve financial growth.

Additional PRULlink Escrow Account Features:

• High protection with affordable premiums (annual premiums start at ₱15,000)
• Coverage up to 100 years
• Eligible for applicants up to 70 years of age
• Ability to add more benefits for greater protection
• There are no fees for withdrawing money
• loyalitetsbonus

📌 Freedom Manulife

Manulife Philippine life insurance products also offer investment options. Manulife Freedom helps you save for the future and offers guaranteed payments and a lump sum.

Manulife Freedom Features:

• Guaranteed cash value and one time benefit
• Life insurance up to age 65
• earnings from dividends
• Additional benefits with your savings
• Payment in five or 10 years

📌 AXA Life BasiX Plus

It is a life, health and investment insurance product from AXA Life Insurance Corporation of the Philippines. With this insurance and investment package, you can focus on building your wealth and prepare for what the future holds.

Features of AXA Life BasiX Plus:

• Guaranteed lifetime coverage from ₱1 million
• Medical fund assured when diagnosed with any of the major critical illnesses covered
• Health coverage up to 100 years
• Partial withdrawal of health coverage from age 70
• At least 10 years of salary to build your fund, with the option to pay more to grow your investment
• Optional pilots for more comprehensive coverage

📌 Safe AIA family

Family Secure is a life insurance plan that allows you to live a worry-free life. It offers high-value life insurance coverage that you can convert into a pension plan when you get older, with a minimum premium of ₱16,000 per year.

Secure Family AIA features:

• high value life insurance
• Convertible into a pension scheme (reduce your cover to increase the value of your account)
• Exclusive Philam Vitality rewards and benefits
• Custom design to increase coverage
• Issue age up to 70 years
• Coverage age up to 100 years

See more information: Did you find a family? Consider these 10 types of insurance

5 tips aboutPhilippines life insurance comparison

Once you've chosen your best insurance companies and the right type of insurance, it's time to go for itcompare life insurance policiespolicies.

Here are some tips to help you choose the best life insurance in the Philippines:

• Request life insurance quotes, quotes or offersfor your preferred insurance coverage from two or three providers of your choice. For the same coverage, benefits and premiums may vary between insurance companies.
• Compare benefits and riders.Evaluate which primary and supplemental services fit your insurance needs and which you can do without. For example, deciding whether to include critical illness benefits in your life insurance plan.
• Compare premiums.For the same coverage, some policies are more expensive than others. For example, an insurance policy may have a higher premium because it is designed for a higher retirement fund. Ask your insurance advisor about the reasons for the price differences.
• Examine the fine print carefully.Review life insurance premiums and charges, such as taxes, policy fees and riders, which will be deducted monthly from your total funds.
• Ask lots of questions.If something is not clear, be sure to ask questions. Discuss each insurance option with your insurance advisor. Research what will happen in different scenarios in the future. GCover all the bases instead of regretting your decision later.

final thoughts

So which life insurance is right for you? The best Philippine life insurance should offer you a product that aligns with your life goals and the best overall value for your money.

How much life insurance costs in the Philippines also varies by age and health status. Therefore, before applying for a life insurance plan, first compare insurance companies, types and policies to get the best package.

Once you've selected a policy, pay your premiums easily with a credit card. If you don't have one or need another, use Moneymax to find the perfect credit card for you. Check out some options below:

📌 Citi Simplicity+

📌 Citi Rewards

📌 HSBC Red Mastercard

📌 Metrobank M Gratis Mastercard

📌 PNB Ze-Lo Mastercard

Sources:

• ^[1] List of insurance companies approved by the Insurance Commission
• ^[2] Premium income(Investopedia, 2021)
• ^[3] Income from life insurance premiums as of December 31, 2021
• ^[4]Life insurance assets as of December 31, 2021
• ^[5] Net worth: what it is and how to calculate it(Investopedia, 2021)
• ^[6] Funds of life insurance companies at 31 December 2021
• ^[7] Definition of net income: Uses and how to calculate it(Investopedia, 2020)
• ^[8] Net income for life insurance companies as of December 31, 2021
• ^[9] Annual New Life Insurance Business Award (NBAPE) corresponding to 31 December 2021