People avail of life insurance for different reasons. According to the Philippine Life Insurance Association, life insurance serves several purposes. One, it gives your family protection by replacing lost income and covering expenses in case of death. Life insurance is also a form of savings as it allows you to build a fund that will answer
your needs when the time comes. If your insurance comes with an investment linked to it, your savings may even grow and you can get additional cash. Lastly, life insurance can provide retirement income. Depending on your type of insurance, your plan can provide you with cash benefits after a certain time period or age. You are then guaranteed
income to tide you over your later years.
Thinking of getting life insurance but don’t know where to start? With several types of life insurance available in the market today, each offering a different set of benefits and limits, making a decision can be difficult.
Find out which one is best for you:
- Term insurance
Term insurance is the simplest and most affordable form of life insurance. You are given coverage for a specified length of time (from five, ten, to thirty years) so long as you pay the monthly premium. It also pays out a fixed amount of money to your beneficiaries upon death, if it occurs when your plan is still active. There are no additional benefits or investment returns if you outlive your plan.
This type of insurance fits you if: You are looking for immediate insurance coverage but are not yet financially ready for longer, more expensive plans or investments.
- Whole life insurance
Whole life insurance provides death and cash benefits to the insured. This type of permanent insurance covers you for your entire
and pays out benefits to your beneficiaries upon death no matter the age. With the premiums you pay, you are also building up a fund that can pay you cash dividends after a specified period of time. You can take this cash as savings or use if needed, while you are still alive.
This type of insurance fits you if: You are looking for
permanent protection that also gives added benefits. You are willing to invest a portion of your income to provide more for your family.
An endowment lets you pay your premiums and provides you coverage for a limited length of time or until a specific age. It pays a lump sum at the end of your plan or upon
and may provide dividends as well. You can either use your endowment—the money paid out when your policy matures—to serve as
fund, your children’s college education fund, or any purpose that you wish. An endowment will still provide death benefits if death occurs while your policy is still active.
This type of insurance fits you if: You want to build a fund with some sort of protection but are still undecided about its purpose.
- Variable life insurance
Variable life insurance, like BPI-Philam’s Critical Care Max, is a mix of life insurance and investment. It is similar to whole life insurance in terms of death benefits
but offers variety in the investment of your cash values. It is called "variable" as values may change because they are invested in stocks or bonds. Variable life insurance also gives you flexibility in making your premium payments.
This type of insurance fits you if: You want to acquire life insurance and start an investment, but don’t want to be burdened with making separate payments for each.
Ready to make plans for your future? With BPI-Philam’s wide range of plans under the BPI-Philam Wellness
you can definitely find one that suits your needs. Because these products are powered by Philam Vitality, you can also be assured that you'll stay motivated to make healthy lifestyle choices--and be rewarded with exclusive perks.
Visit any BPI branch and talk to a Bancassurance Sales Executive to find the best type of insurance that will help you live healthier, longer, better lives.