Types of Life Insurance in the Philippines:

• Term Insurance


  A term policy is one that pays the face amount only in the event of death within a stated number of years. As the name suggests, this type of insurance policy gives you coverage for a specific “term” or specified number of years (usually 20 to 30 years). Like most policies, a death benefit will be paid if the policyholder passes during the time period of the active policy.
• Term insurance is typically less expensive and has one of the lowest upfront costs compared to other types of insurance. This is because it is bound by a specific time. It also gives you the biggest bang for your buck if your focus is family protection in case of untimely passing during the term. This is because you’re basically getting a pure life coverage without all the additional charges for features involving investments. However, the features that make it advantageous can easily become disadvantageous for you, depending on your need.
• When you get term insurance, you have limited coverage based on your specific term. Term insurance premiums also escalate as you age due to greater sickness and mortality risks that come with it. And because term insurance is typically pure life coverage, you don’t get to build up capital like you would with other types of insurance. This means when your policy expires, so does the money you put up to keep it active.
• Whole Life Insurance


  In contrast with term insurance, whole life will pay the face value whenever death occurs. It gives the most permanent coverage over the insured’s entire lifetime for the least amount of premium.
• Endowment

  An endowment plan is one of the more traditional types of life insurance plans that offer protection and savings. It works by helping you save regularly over a specific period of time, after which you will receive an amount upon maturity in a lump sum or in monthly payouts. Endowment plans are in place to give the policyholder insurance coverage, as well as a living benefit should they survive the policy. Should something happen to the policyholder, the appointed beneficiary shall receive the returns as a death benefit.