The Best Life Insurance Companies of 2020 in the Philippines
Suck at money? Congrats. You’re part of the 99 percent of people in their 20s floundering when it comes to finance. Adulting is hard, and money is harder—especially when it’s your own and not your parents. My Two Cents is here to break down everything you need to know about finance, business, and entrepreneurship. We’ll tackle all the basics, from how to get a business permit to how to invest in stocks, to educate the fledgling adults on how to not go broke.
Welcome to the idiot’s guide to money. Next lesson: choosing the best life insurance company for you.
If the pandemic has taught us anything, it’s to expect the unexpected. Death can arrive at any moment, whether that’s in the form of a pandemic or a heart attack. One factor of being an adult is being able to talk about death. It’s the debt that all men pay. For a family to be financially stable and prepared for the future, having a life insurance policy can be a lifesaver, especially when the deceased happens to be the breadwinner.
We’ve discussed life insurance before, focusing on what you should look out for and what sort of plan you might need.
But now, we’ll get down to the nitty-gritty and give you the best choices of life insurance companies in the Philippines. PESOLAB, a Filipino financial literacy platform, has released its list of the top 10 life insurance in the country, consolidating data from the Philippines’ Insurance Commission. Under the Department of Finance, the Insurance Commission is a regulatory body that oversees the life insurance companies and health maintenance organizations (HMOs) registered in the Philippines.
The top 10 life insurance companies in the country are...
- Philippine American Life & Gen. Ins. Co. (Philam)
- Sun Life of Canada (Philippines), Inc. (SunLife)
- Philippine Axa Life Insurance Corporation (AXA)
- Manufacteres Life Insurance Co. Inc. (ManuLife)
- BDO Life Assurance Company, Inc. (Generali Pilipinas Life)
- Insular Life Assurance Company, Limited (Insular Life)
- BPI-Philam Life Assurance Corporation (BPI-Philam)
- PRU Life Insurance Corporation of the U.K. (Pru Life)
- FWD Life Insurance Corporation (FWD Life)
- United Coconut Planters Life Assurance Corp. (Coco Life)
The top 10 were determined based on the consolidated data on each company’s assets, net income, net worth, paid-up capital, premium income, and new business annual premium equivalent (NBAPE). In short, it assesses the financial performance of every life insurance company to come to this conclusion.
Philam topped the list as it outperformed all the other companies in net worth and assets, while SunLife came at a close second as it topped the others in net income, premium income, and NBAPE.
Now, what does this all mean? When choosing a life insurance company, it’s important to look beyond the policies and at the company itself. Financial strength in times of crisis, like a pandemic, should be a defining factor for your choice.
Which one should you choose?
Life insurance is a long-term investment, meaning it will be years before your beneficiaries can claim the policy. That can be decades from now. A company’s financial strength can indicate that it will be able to endure changes in the market, like a recession, to pay your heirs when the time comes. Long story short: It won’t be bankrupt when you kick the bucket 40 years from now.
The 10 companies on the list above are clearly the strongest life insurance companies financially in the Philippines, based on data from the Insurance Commission, but it’s important to note that financial strength isn’t the only factor when choosing a company.
Some companies are pickier than others when it comes to the current health of potential policyholders, some have better riders and death benefits, while others have a more convenient claims process. Meanwhile, some companies are more senior-friendly for those getting life insurance later in life, offering more affordable premiums despite lower claims.
When it comes to picking the right company, the best advice is to canvass for policies under each company and compare the death benefits, VULs, PWD and critical illness riders, accidental death benefits, and more. Each company has multiple policies with multiple combinations of benefits, riders, and such, so before you go into a meeting with an agent, you need to establish your priorities: Is death benefit more important than VUL for you? Are you willing to pay for additional riders in case of emergencies?
The fact that you’re reading this article tells us that you’re preparing to settle on a plan, and that’s good news. It’s better to go into this prepared, as each plan is a 10-year or 20-year financial commitment. So read up, compare, and choose the best bid for your life insurance policy.