week 10

• Non-banking financial institution (NBFI)


  A financial institution that does not have a full banking license and cannot accept deposits from the public
• Non-bank financial institutions


  • Facilitate alternative financial services, such as investment, risk pooling, financial consulting, market brokering, contractual savings, and money transmission
  • Provide services that are not necessarily suited to banks
  • Serve as competition to banks
  • Specialize in sectors or groups
• Insurance


  A contract in which an individual or entity pays an insurance company in exchange for financial protection or reimbursement of losses
• Insurance policy


  The contract that outlines who or what will be covered under the contract, the circumstances for which payment will be issued by the insurance company, who will receive the payment, and how much they will receive
• Insurance Commission


  A national government agency mandated to regulate and supervise the insurance, pre-need, and health maintenance organization industries
• Life insurance


  A contract between an insurance company and a policy owner in which the insurer guarantees to pay a sum of money to one or more named beneficiaries when the insured person dies in exchange for premiums the policyholder pays during their lifetime
• Death benefit


  The primary reason someone purchases a life insurance policy; it's the amount of money the insurer will pay out to the beneficiaries if the policyholder dies during the policy's term
• Cash value


  The portion of a life insurance policy that earns interest and may be available for the policyholder to withdraw or borrow against
• Insurance premium


  The amount of money an individual or business pays for an insurance policy
• Types of life insurance in the Philippines

  • Term life insurance
  • Whole life insurance
  • Variable universal life insurance
• Term life insurance


  A form of life insurance policy designed to provide financial protection for the policyholder's loved ones in the event of their death, with coverage for a specific number of years
• Whole life insurance


  The traditional life insurance where the policyholder is covered permanently and the policy will not expire as long as premiums are paid, with guaranteed cash value and death benefit
• Variable universal life (VUL) insurance

  A type of permanent life insurance policy that combines a death benefit with a savings component (cash value), allowing the policyholder to adjust how much they pay into the policy each year
• Whole Life Insurance


  Permanent life insurance policy, relatively simple compared to other permanent life insurance options
• Variable Universal Life (VUL) Insurance


  Type of permanent life insurance policy, combines a death benefit with a savings component (cash value), coverage can last entire life so long as insurance costs are paid
• Sun Life of Canada (Philippines) Inc. was founded in 1895, three years before the Republic of the Philippines was officially founded
• Sun Life in the Philippines is one of the largest and most trusted insurers in the country with over a million group and individual life policyholders and is boosted by the strength and stability of Sun Life Financial shares in the Philippine Stock Exchange
• Sun Life of Canada (Philippines) Inc. is a prominent player in the industry, offering a wide range of goods and services including life insurance, health insurance, retirement plans, education plans, and investment-linked products for individuals, families, and companies
• Banks Accredited with Sun Life for Premium Payments

  • Bank of the Philippine Islands (BPI)
  • Banco De Oro (BDO)
  • Rizal Commercial & Banking Corporation (RCBC)
  • UnionBank of the Philippines (Unionbank)
• Non-Life Insurance


  Also known as general insurance, insurance policy to protect against losses and damages other than those covered by life insurance, usually covers valuables and properties, coverage period is typically one year with premiums paid one-time
• Types of Non-Life Insurance Products

  • Auto Insurance (Vehicle Insurance)
  • Aviation Insurance
  • Business Insurance
  • Engineering Insurance
  • Health Insurance
  • Homeowner's Insurance
• Comprehensive Car Insurance


  Type of car insurance not required by law, offers protection against third-party liabilities and financially protects vehicle owners against damages and losses
• Compulsory Third-Party Liability (CTPL) Insurance


  Basic or standard car insurance motorists must acquire before registering or renewing vehicle registration, protects from liability for third party bodily injury and/or death in an accident
• Aviation Insurance


  Liability insurance required for aircraft, covers losses from owning, maintaining, and using aircraft, hangars, or airports
• Types of Business Insurance

  • Property Insurance
  • Liability Insurance
  • General Liability Insurance
• Types of Engineering Insurance

  • Civil Engineering Completed Risks (CECR)
  • Contractors All Risks (CAR)
  • Electronic Equipment Insurance (EEI)
  • Erection All Risks (EAR)
  • Machinery Breakdown Insurance (MBI)
• Cashless Treatment (Health Insurance)


  Policyholder not supposed to pay anything to network hospital, insurance company pays hospital directly
• Reimbursement (Health Insurance)


  Policyholder settles medical expenses first and later asks for reimbursement from insurance company
• Types of Health Insurance Policies

  • Individual or Self Health Insurance Plan
  • Family Floater Health Insurance Plan
• Types of Homeowners Insurance

  • HO-1
  • HO-2
  • HO-3
  • HO-4
• Family Floater Health Insurance Plan


  One policy which aims to provide sum insured coverage to individuals and as well your family members
• Homeowner's Insurance


  Provides insurance for damages or losses due to fire, theft, and other named perils
• Types of Homeowners Insurance


  • HO-1: The most basic homeowners insurance policy
  • HO-2: An HO-2 insurance policy is also known as a broad form and covers your home and your personal belongings
  • HO-3: The most common type of homeowners insurance policy for single-family homes, with broader coverage than the HO-2
  • HO-4: A policy type that is specifically for tenants and is referred to as renters insurance
  • HO-5: An HO-5 policy is the most robust option available, covering your home, your personal belongings, liability, additional living expenses and medical payments for others
  • HO-6: A type of coverage designed for condo owners
  • HO-7: The type of policy you get if you own a mobile or manufactured home
  • HO-8: A special type of homeowners insurance for older properties that cost more to rebuild than what they're actually worth on the market
• Marine Insurance


  Includes cargo, hull freight, and liability of the shipowner to the crew, passengers, or property of the third parties
• Types of Marine Insurance

  • Freight Insurance - protects a merchant ship's owning corporation, because they are prone to losing money in freight
  • Freight Demurrage and Defense Insurance (FD&D or defense) - This marine insurance covers legal costs claims and handling assistance for a broad range of disputes not covered by P&I, Hull, or machinery insurance
  • Hull Insurance - This marine insurance covers your vessel's hull and torso, along with other pieces and articles of the ship's furniture
  • Liability Insurance - A liability marine insurance policy offers compensation for any liability caused due to your ship colliding or crashing, or any form of induced attacks
  • Marine Cargo Insurance - This insurance will cover your losses against an adequate premium payment
  • Machinery Insurance - This insurance coverage gives you protection for all essential machinery on-board
  • P&I Insurance - This Insurance is provided by the P & I club. This club is a shipowners' mutual insurance coverage service to focus on the damages or losses to third-party goods that other standard marine insurance policies may not cover
• Travel Insurance


  A type of insurance that covers the costs and losses associated with traveling
• Types of Disability Insurance

  • Long term disability insurance (LTD) - This type of insurance policy is designed to last for many years
  • Short term disability insurance (STD) - This policy is designed to replace your income for a much shorter period than LTD – typically a few months until you can get back to work, and rarely more than a year
• Noncancelable


  Means the policy cannot be canceled by the insurance company, except for nonpayment of premiums
• Guaranteed Renewable


  Gives you the right to renew the policy with the same benefits and not have the policy canceled by the company
• Malpractice Insurance


  Professionals such as doctors, lawyers, and accountants will often purchase malpractice insurance to protect against claims made by disgruntled patients or clients