Life insurance, health insurance, pamana--all these are the things that come into mind when Filipinos are asked about insurance. Sure, your company might at the moment be paying in your respect (with part of your salary, albeit) but do you know what this payment happens to mean for you? And do you know what benefits come along with these premium payments or, besides SSS, to what life insurance company in the Philippines you’re making these payments?
Well, were not here to talk about that or at least not directly but might give you an idea on what your availing.
Term
Term life insurance or term assurance is named thus because it works on relevant terms as in only for a limited period of time for as long as premium is paid. This is the best kind of “term” if you need insurance temporarily. It gives the maximum amount of safety for the lowest cost with the back lash of being temporary for the duration of its term.
To illustrate, imagine needing to film a dangerous bike stunt for a show. That could potentially injure if not kill you—term insurance will help you secure your health or the dependents you will leave behind should the bike stunt become your undoing. After the filming, the term stops and your full payment goes to the company. Should you need to do a stunt again, you are going to need to apply (because, even with its nature, term assurance still undergo approval) for a new term insurance.
Whole Life
This is the most basic type of insurance and probably the second most familiar one (endowment being the first because, of course, pamana). In this type of insurance, you pay premiums until you need the insurance, in which if you cease to pay, you can’t claim anything from. In cases like this, you will need to pay the full outstanding amount you forgot to pay before any benefit can be dished out. Inclusive in this kind of insurance are two things: a stated amount payout should the enrollee meet demise and a investment that the enrollee can withdraw or loan from.
Such is the case with the regular Filipino employment mandated SSS insurance. Should you die with an active account, whoever is listed as your beneficiary will gain a specific amount pertinent to your term. Also, as an insurance policy holder, an employee can, with three years of paid premiums, loan a specific amount payable in some 2 years.
Endowment
This one, almost every Filipino is familiar with. Endowment (pamana in Filipino) insurance gives a fixed amount of payout to a beneficiary in the event of untimely demise of the enrollee. Although, note that “untimely” is in the definition—this policy is intended to be an accumulated investment, contrary to popular belief. An endowment policy pays out after a specific amount of time much like a time share. The only difference is that, in an endowment policy, should an untimely death occur, someone else will be able to have access to the savings. This is especially good for people who can’t make the commitment to save money. An endowment policy semicompulsarily needs paying and this accumulation will and always be turned over after the specified term period.
Well, were not here to talk about that or at least not directly but might give you an idea on what your availing.
Term
Term life insurance or term assurance is named thus because it works on relevant terms as in only for a limited period of time for as long as premium is paid. This is the best kind of “term” if you need insurance temporarily. It gives the maximum amount of safety for the lowest cost with the back lash of being temporary for the duration of its term.
To illustrate, imagine needing to film a dangerous bike stunt for a show. That could potentially injure if not kill you—term insurance will help you secure your health or the dependents you will leave behind should the bike stunt become your undoing. After the filming, the term stops and your full payment goes to the company. Should you need to do a stunt again, you are going to need to apply (because, even with its nature, term assurance still undergo approval) for a new term insurance.
Whole Life
This is the most basic type of insurance and probably the second most familiar one (endowment being the first because, of course, pamana). In this type of insurance, you pay premiums until you need the insurance, in which if you cease to pay, you can’t claim anything from. In cases like this, you will need to pay the full outstanding amount you forgot to pay before any benefit can be dished out. Inclusive in this kind of insurance are two things: a stated amount payout should the enrollee meet demise and a investment that the enrollee can withdraw or loan from.
Such is the case with the regular Filipino employment mandated SSS insurance. Should you die with an active account, whoever is listed as your beneficiary will gain a specific amount pertinent to your term. Also, as an insurance policy holder, an employee can, with three years of paid premiums, loan a specific amount payable in some 2 years.
Endowment
This one, almost every Filipino is familiar with. Endowment (pamana in Filipino) insurance gives a fixed amount of payout to a beneficiary in the event of untimely demise of the enrollee. Although, note that “untimely” is in the definition—this policy is intended to be an accumulated investment, contrary to popular belief. An endowment policy pays out after a specific amount of time much like a time share. The only difference is that, in an endowment policy, should an untimely death occur, someone else will be able to have access to the savings. This is especially good for people who can’t make the commitment to save money. An endowment policy semicompulsarily needs paying and this accumulation will and always be turned over after the specified term period.