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Filipinos are mostly averse to paying insurance for life plans because they would rather spend the money while alive. They would rather spend it with family members than set it aside when they die. This thinking has shifted and more people appreciate the value of insurance that guarantees a stable future after the head of the family passes.
As for buying insurance for health and HMO plans, people start with a cheaper plan rather than having no insurance because when a health emergency strikes, the insurance plan comes in very handy.
01 of 18What is Life Insurance?
Life Insurance is a plan wherein you pay for a premium over some time so that when you die, your beneficiaries can claim the payout as a death benefit. The people you assign to your plan as beneficiaries can claim compensation on the amount of the insurance plan that you paid after you die.
You will fill out a form with questions about your health and lifestyle. After which, you will undergo a medical exam, so the company can accurately place you in the health class or risk category based on your score. The premium amount will depend on your age and health score since those with health issues will have to pay higher than those who are healthy.
02 of 18Risk Category
- Preferred Plus- You’re in excellent health, normal weight, no history of smoking, no chronic illness, and no family history of life-threatening disease.
- Preferred- You have excellent health but have minor issues but well-controlled issues on blood pressure and cholesterol.
- Standard Plus- You’re in very good health but may be overweight or have high blood pressure which prevents a better rating.
- Standard- This is the common rating for many policyholders. You are healthy in general and have a normal life expectancy. But you have some minor health issues such as being overweight, registered with high blood pressure, or high cholesterol. You may also have a family history of a life-threatening disease.
- Substandard- You have serious health issues that include diabetes and heart disease and are placed on a table rating system and ranked using letters or numbers from highest to lowest. Usually, you will fall in the Standard category, with an additional 25% on the lower table ratings.
- Smokers- You will need to pay more due to the added risk of smoking.
03 of 18Benefits of Life Insurance
- Pays for Medical Bills and Funeral Costs that the principal holder incurred.
- Financial Support from the loss of the income-earner affects the family’s standard of living.
- Pay for Different Financial Goals such as college tuition, house mortgage, and funding a business.
- Retirement Extra Funds that give a lump sum amount for retirement planning.
- Payment for Taxes and Debt for the settlement of estate tax and other debts.
04 of 18Types of Life Insurance
1. Endowment- Policyholders can opt to get a lump sum upon a specified time or his/her death.
Allows you to save for a specific purpose (retirement, college, etc.)
Higher premiums compared to other life plans
Guaranteed returns upon maturity
Not advisable for full-life protection
Includes some form of insurance coverage
2. Term- Beneficiaries are paid upon death of the policyholder
Low premium requirements
If the policyholder outlives the term period set, the beneficiaries don’t get anything
Affordable choice instead of whole life or endowment
Premium increases when you renew the policy terms
Easy to understand
3. Whole Life – Provides coverage until 100 yrs old with a cash value option
Permanent protection for 100 years of policyholder’s life
Higher premium amount
Flexible payment terms for fixed premium
Complex plans that need to be understood carefully
Additional features and living benefits
4. Variable Universal Life – Includes life protection and investment plan for wealth creation
Dual purpose of life insurance and investment tool
No guarantee for cash value and dividends
No maturity age
The total face value and the death benefit is dependent on the investment performance of your plan
Payable cash value with assured sum
Investment fees are charged to you
Death components are not limited to the policy face value
Liquidity gives you access to funds at any time and an emergency fund
5. Buy Term, Invest Difference – Buy term insurance, then invest in the difference to get a Variable Universal Life.
Avail of lower fees from universal life insurance and VUL.
Higher price for long-term coverage because premiums increase every five years
BTID allows you to craft your investment strategy and pick mutual and index funds
You can manage the investments that save you management fees
You decide how to split the premium amount for insurance and investments.
You can place money in mutual funds and withdraw anytime.
The do-it-yourself (DIY) plan can backfire if you lack insurance and investment knowledge.
Higher chance for Return of Investments
05 of 18Top Insurance Companies
1. Pru Life Insurance Corp of U.K
PRU Life has worldwide offices with its head office in London and set up its office in the Philippines in 1996. The premium is affordable and depends on the policyholder’s age. For term insurance, you pay Php 750 a month for a death benefit of Php 1M. Total and Permanent Disability, Accidental death and disablement, and Critical Illness are priced at Php 100,000-500,000 for each category.
The minimum investment for VUL is Php 1,500 per month with an assured sum or death benefit of Php 1M. Total and Permanent Disability, Accidental Death and Disablement, and Critical Illness range from Php 200,000- to 500,000 for each category.
20 YEARS OLD
30 YEARS OLD
40 YEARS OLD
50 YEARS OLD
2. Sun Life of Canada (Phils.)
SUN Life has offices all over the world, with its main office in Canada. It is the first and oldest insurance company set up in the Philippines since 1895. It ranked number one in premium income of life last year and second-ranked New Business Annual Premium(NBAPE).
You can get a quotation for different plans upon request if you register and answer their online questionnaire. You can choose the Estate Provision, Retirement, Preparing for life milestones, investment-linked insurance funds, group life, and other options.
3. Philippine AXA Life Insurance Corp.
AXA Group has a worldwide network in 50 countries, with its headquarters in France. They have been in the Philippines since 1999 and have partnered with Metrobank and PSBank. The
A life insurance plan is called Goal Getter which allows the beneficiaries to receive 125% of total premiums or the actual value of your investment, whichever is higher.
As you log into the AXA website, it will ask you your goal for a home, car, education, travel, and financial security. You have to fill out a form to get a quote based on your age and interview date. You have the option to pay Php 5,000-10,000 to reach a Php 50,000 yearly total.
4. Phil. American Life and General Insurance Company, Inc.
The life insurance of Philam Life has three packages for Life Smart that you can choose from and are payable within 15 years. In the event of accidental death, your beneficiaries will get double the amount of your plan. But if you are diagnosed with a terminal illness, your heirs will get the guaranteed benefit of your plan.
You have the option to continue your plan for an extra five years reaching the 20-year mark. You will get all your payments back plus additional yearly dividends and loyalty bonus through cash payments
LIFE INSURANCE COVERAGE
Add Coverage Accidental Death
Terminal Illness Coverage
Total Cash Benefit at the End of Plan
Annual Payment for 15 years
5. Manulife Philippines
Manufacturers Life insurance Co (Phils) or Manulife Philippines is a subsidiary of Manulife Financial Corporation with headquarters in Canada. With its offices all over Asia, Canada, and the United States, the company established itself here in the Philippines in 2000. Its strategic alliance partner is China Bank.
Manulife has the Freedom Policy which is a long-term life insurance plan with regular payouts or one lump sum at the end of the insurance term. Under this plan is the guaranteed life protection until 65 years old for the security of the family. You earn extra income through the dividend earning that you can use to reinvest or withdraw for your needs.
06 of 18What is Health Insurance?
Health is wealth. There is no way around this statement, as everything revolves around how healthy you are. Buying health insurance remains a low priority in the family budget of Filipino households.
Medical costs increase by a minimum of 8% every year, with Filipinos shouldering almost half of their medical costs in the absence of health insurance, yet this is not a budget priority
Way before the Covid pandemic, the 2019 health expenditure totaled Php 792.6 B. Actual health coverage of 20% was paid by the local and national government, 17% by Health Maintenance Organizations (HMO), 2% by private health insurance, and 2% by other means.
The lack of information and awareness for paying chronic sickness and diseases become a burden to the person.
07 of 18What is Health Insurance?
Health Insurance is coverage for a person’s medical or surgical expenses. You pay a higher monthly premium and do not need to cover the entire cost of hospitalization, consultations, or tests all at once. Health Insurance may be paid by an individual or offered as part of benefits packages by the companies to the employees.
The age coverage is 17-75 years old with a fixed term policy that starts with a minimum of Php 40,000. As the member ages, the premium amount increases. The policyholder can get health subsidy payments by reimbursement. But if the policy is not used, it earns withdrawable dividends.
What are the types of Medical Insurance?
You can get three kinds of medical insurance in the Philippines. The first two are PhilHealth which is government-run and the other is the Health Maintenance Organizations (HMO) which comprise private organizations offered to members. The last is the Health Insurance by private companies to an extensive network of people.
While PhilHealth is a mandatory contribution from an employee, you will still need Health Insurance to pay the balance of the hospital bills. PhilHealth only covers a portion of your total bill depending on the number of your total contributions while employed. Republic Act 11228 provides full medical coverage for senior citizens and persons with disability (PWD).
08 of 18Health Insurance Package Inclusions:
One reason why people pay for health insurance is to avoid hospital bills or going broke. The health plans have different packages with the corresponding subsidy in the event of medical treatment or concern. You can choose the following services included in the plan:
- Inpatient Care- The patient is admitted to the hospital for immediate attention, specialized procedures, and facilities that the patient or family needs.
- Outpatient Care- The patient seeks medical attention from a doctor’s clinic, for therapy or prescribed medicines in the hospital without being admitted.
- Emergency Care- The patient can either walk to the emergency room or arrive via the ambulance to seek immediate healing for immediate attention.
- Optional Benefits- You pay an additional premium because this is not part of the standard health package offered.
Annual Physical Exams
09 of 18Benefits of Health Insurance
You appreciate getting health insurance for serious illnesses that give higher compensation. It comes in handy when there is a need for long-term hospitalization, treatments, or expensive procedures. You have a daily hospital income based on the plan and are reimbursed after you settle your bill.
You can purchase health insurance for yourself or include immediate family members for an additional cost. As you look through the plans, take note that they offer comprehensive coverage with different terms and conditions, but will likely have the basic most of these benefits:
- Coverage for critical illness benefits.
- Financial Assistance or subsidy for surgical and hospitalization expenses
- Coverage includes Ancillary services like medication and laboratory tests.
- Higher compensation for different medical conditions.
- Some providers offer life insurance savings.
10 of 18Top 5 Health Insurance Companies
Some private health insurance companies are comparable to international companies and can be used outside the Philippines.
Best for individuals and their families, it boasts of being prescribed by doctors because of extensive partner clinics and hospitals all over the country.
Medicard Health Check Card
Medicard Family Individual
Php 3,600/ year
Php 10,000 +/ year
Unlimited check-ups in the same MediCard hospital
Unlimited check-ups with select Medicard hospitals or clinics
Basic medical benefits, long-term care benefits, health care hospital benefits
Primary Care Physicians & Specialists
Accredited Doctor, Surgeons, Specialist in the same hospital
Primary Care Doctors & Specialists
20% discount on labs & tests
One-Time oral prophylaxis
One-time annual physical exam
2. Kaiser International
This plan is best for corporations, families, and individuals who want to cover medical expenses with prices that range from Php 21,435 to Php 38,196 a year for the 60 and younger age group. They have a senior care plan for 61 – 100 years old with a price range from Php 25,300 to Php 68,200 a year.
Long Term care includes an accumulative self-earning investment that will be refunded after seven years if the plan is not utilized. Short Term care covers preventive health care and in-patient hospitalization based on the plan benefits. The Senior Care Plan covers hospital benefits, critical care, and emergency out-patient care.
Senior Care Plan
Basic Medical benefits
Out-Patient Care- consultations, treatments, laboratory, X-rays, Minor Injuries & surgery, eye, ear, nose, throat treatment
Critical Care Benefits- ICU, Coronary Unit, Surgical Benefits
Access to 500 Accredited hospitals & clinics
In-Patient Care- Room subsidy, Surgical procedure, ICU, Dialysis, Chemotherapy, Radiotherapy, Diagnostic Procedures
Basic Hospital Benefits- 45 Days Disability for Hospital Room
Lifetime access to 1,000 accredited physicians, Specialists, Surgeons, etc.
Kaiser accredited Specialists, Surgeons, Physicians, etc.
Miscellaneous Expense- medicines, laboratory, diagnostic procedure
Annual Physical Examination
Blood Count, Urinalysis, Fecalysis, Chest X-ray, electrocardiogram
Physician, Specialist, and Surgeon visits
Yearly hospital benefit limit
Preventive Health Care
Private Nurse after Procedure for 5 days
Modern therapies & Interventional Surgical Procedures
3. PRU Life U.K.
PRUWellness is comprehensive health insurance that provides daily or lump sum cash benefits to pay for hospitalization costs. The premium is based on the age of the policyholder. If you are diagnosed with critical illness, you get double the cash benefit amount, while extra funds are for surgery or ICU confinement.
Your plan includes a daily room subsidy for long-term hospitalization, dreaded disease benefit, ICU benefit, reimbursement for surgeries or procedures, and a death benefit from the term insurance.
4. Sun Life
SUN Life has many plans to choose from including SUN Fit and Well, SUN Senior Care, SUN Life Assure, SIN Healthier Life, SUN First Aid, etc.
SUN Fit and Well
SUN Healthier Life
Critical Illness Benefit until Age 100
Any Stage of Critical Illness
Health & Wellness Benefits
Specific Cancer Booster Benefit
The plan is ideal for individuals, families, and companies that need healthcare programs from nationwide medical providers. The health plans include the specialized My Maxicare, MyMaxicare LITE for one-time confinement for eight identified illnesses (Dengue, Malaria, Cholera, Typhoid & Para Thyroid, Gastroenteritis, Pneumonia, Leptospirosis, and Chikungunya.
11 of 18What is HMO Insurance?
Private providers of health care insurance give access to accredited doctors who fall under the Health Maintenance Organizations (HMO). The yearly plans are comprehensive and customized and cost a fraction of the price compared to health insurance. The maximum coverage age is 65 years old and is governed by the Philippine Insurance Commission.
Many companies offer HMO insurance as a health benefit to their employees on top of their PhilHealth contribution. But you can pay this individually or for your family with a yearly renewal and policy term depending on your health status.
- Membership- Usually given to employees, self-employed and freelancers can buy for themselves and their families.
- Coverage- Annual coverage is renewable depending on the member’s age, health status, and claims filed within a year.
- Accredited Healthcare Providers- Members get free healthcare services within the HMO’s network, but pay their own bill if it is outside the network. For subsidy on emergency care, the HMO may reimburse 80%-100% of hospitalization and professional fees.
- Maximum Benefit- There is a fixed maximum amount that you can use, but if you exceed it, you pay the balance on your own.
There are two types of HMO Plans:
Comprehensive Plan- The traditional HMO health care benefits have annual premiums ranging from Php 4,000 to Php 60,000 a year.
12 of 18What to Consider in an HMO Plan?
Before you jump in and sign up for an HMO plan, you have to consider four important factors in your HMO plan. The more comprehensive and expensive plan features a wider network of choices including top-rated medical institutions, hospitals, and specialized clinics.
- Price – The premium is determined by age, gender, physical condition, known existing ailments, family history, lab results, etc.
- Coverage – Study the actual benefits you will get from your plan and if this is what you need
- Exclusions – Situations stated in the plan where HMO benefits can not be availed for subsidy like pre-existing conditions, specified dreaded diseases, etc.
- Network of Doctors and Hospitals – Check if your plan is limited to certain clinics and hospitals that you can go to.
13 of 18Benefits of HMO:
Employees with an HMO plan given by their company need not pay for their monthly premiums. But even if you pay on your own, you are assured of a big subsidy to cover the remaining balance of your hospital bill, medical procedures, and emergency assistance.
- Inpatient and outpatient coverage.
- Surgeries and procedures
- Coverage for ancillary services like lab tests and medicine expenses
- Dental services are under a special plan.
14 of 18HMO Primary Care Clinic Services
CONSULTATIONS WITH PRIMARY CARE DOCTORS
SIMPLE LABORATORY TESTS
ANNUAL PHYSICAL EXAM
Fasting Blood Sugar
Urinalysis & Fecalysis
Digital Rectal Exam
Consultation with a Doctor
15 of 18Maximize Your HMO Benefits
- Be a PhilHealth Member- You can deduct your hospital bills from PhilHealth benefit subsidy and then use your HMO to pay for the balance of your hospital bill.
- Use the HMO-owned Clinics for check-ups and treatments instead of going to a hospital or another clinic.
- While going to the emergency room in a hospital is convenient, it costs five times more than the HMO clinic. You should avoid ER consultations to avoid depleting your HMO yearly benefits.
- Maximize free consultations and annual physical exams to determine problem areas and get proper medications.
- Pay your premium on time to avoid the cancellation of your HMO plan. Monitor your payment records.
- Before you renew your HMO plan, review the new company offers or decide if you need to upgrade based on your health requirements.
16 of 18Top HMO Providers in the Philippines
1. Maxicare HealthCare
This plan is ideal for an individual, members of the family, or Corporate HMO sponsorship. It has inpatient, outpatient, preventive, and emergency care, annual check-ups, Maxicare’s International Assist Program, Dreaded Disease/Condition, benefits for lab tests & similar procedures.
Price: Php 18,000/year with a maximum benefit limit of Php 200,000
Ideal plan for SME Owners and Corporate Accounts that assign to employees as a job perk. The plan includes an annual physical exam, inpatient, outpatient, emergency care/confinement, lab tests, and similar procedures.
Price: Quotation upon request according to client’s need
3. Medicard Philippines
This plan is best for individuals, families, corporate, and OFWs that have multiple plans to cater to various needs. Members pay what is used, while untouched benefits are credited to the policyholder. The plans subsidize hospitalization, outpatient services, preventive care services, annual physical exam, lab tests for blood chem, and optional dental services.
Price: Minimum of Php 3,000 for maximum benefit limit of Php 95,000 for Medicard Select and Php 150,000 for Medicard Kabayan (OFW plan).
4. Caritas Health Shield
This plan is best for Individuals looking for 6-10 year HMO coverage and a 10-year Kiddie Health Plan. Included are Special diagnostic procedures, hospitalization benefits, medical expense benefits for outpatient services, emergency care, annual physical examination, preventive health care, dental care, membership privileges and outpatient services.
Price: Quotation upon request for different plans with a maximum entry age of 71 years old.
5. Philhealth Care (PhilCare)
This is ideal insurance for individuals looking for a comprehensive plan that includes wellness and a healthy lifestyle. The new DigiMed allows members via phone and video.
It includes preventive care, outpatient care, emergency room care, hospitalization, travel assistance, lifestyle concierge, pre-existing conditions coverage, exclusive perks from lifestyle partners, financial assistance, and protection.
Price: Quotation upon request with a maximum benefit limit of Php 300,000 for the Health Luxe Plan and monthly premiums depending on age bracket.
17 of 18Top Budget Priced HMO Companies
There are 30 recognized HMO companies in the Philippines. But for self-employed and freelancers, you need affordable and value-for-money HMO insurance. Here are the top picks.
1. MediCard Health Check
For regular check-ups and purchase of health cards for the family. It has unlimited consultations with primary care doctors, free physical exams, and a 20% discount on laboratory tests.
Price: Php 500 per person
Affordable preventive healthcare
Limited to Preventive Care & will need an additional card for other health packages.
No age limit & no medical exam needed
By Appointment to go MediCard freestanding clinics where you purchased your card
Discounts & Freebies on optical shops, wellness centers, hotels, restaurants, etc.,
Pay an additional Php350 for ophthalmologist and ENT doctors
Online & Text Member Application & Renewal
2. Health Ka Pinoy Health Emergency Card
The prepaid health cards are used to cover the expenses for emergency care in accredited EastWest Healthcare hospitals. It is limited to emergency cases and will need another health card for healthcare needs.
Annual Premium Plan
Emergency Medical Expense
Accidental Burial Benefit
Accidental Death & Disability
Total Benefit Coverage
3. Maxicare EReady
Prepaid health card for emergency care to prepare for any medical emergency for those 65 years and younger with a maximum one-time coverage fee of Php 15,000. Emergency care services include professional fees, emergency room fees, medicines for treatment, diagnostic and lab tests, oxygen, IV fluids, dressings, casts, and sutures)
Price: Php 549 (without major hospitals) Php 749 (with major hospitals)
Budget-friendly safety net for medical emergency
Limited to emergency care and need to buy another health card for other needs
No check-up paperwork
Access to 1,000 accredited hospitals nationwide
18 of 18Final Notes:
Buying an insurance plan is something you would find useful as you grow older. You may be forced to lessen your budget for travel or entertainment, but you are putting the money into a high-priority section of your life. You have different options for Life Insurance, one is to use it as a retirement fund or an endowment for the beneficiaries after you die.
Health Insurance gives you peace of mind in case of medical emergencies. You can get medical attention when you know there is an available source of funding. You are prepared for any surgery or treatment and will not get into mounting debt because of the bills.
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