What Is Life Insurance
What Is Life Insurance
What Is Life Insurance
New to buying life insurance? Learn how it works and what you need to understand to choose
your coverage.
A life insurance policy is a contract with an insurance company. In exchange for premium
payments, the insurance company provides a lump-sum payment, known as a death benefit, to
beneficiaries upon the insured's death.
Typically, life insurance is chosen based on the needs and goals of the owner. Term life insurance
generally provides protection for a set period of time, while permanent insurance, such as whole
and universal life, provides lifetime coverage. It's important to note that death benefits from all
types of life insurance are generally income tax-free.1
There are many varieties of life insurance. Some of the more common types are discussed below.
Term life insurance is designed to provide financial protection for a specific period of time, such
as 10 or 20 years. With traditional term insurance, the premium payment amount stays the same
for the coverage period you select. After that period, policies may offer continued coverage, usually
at a substantially higher premium payment rate. Term life insurance is generally less expensive
than permanent life insurance.
Needs it helps meet: Term life insurance proceeds can be used to replace lost potential income
during working years. This can provide a safety net for your beneficiaries and can also help ensure
the family's financial goals will still be met—goals like paying off a mortgage, keeping a business
running, and paying for college.
It's important to note that, although term life can be used to replace lost potential income, life
insurance benefits are paid at one time in a lump sum, not in regular payments like paychecks.
Universal life insurance is a type of permanent life insurance designed to provide lifetime coverage.
Unlike whole life insurance, universal life insurance policies are flexible and may allow you to raise
or lower your premium payment or coverage amounts throughout your lifetime. Additionally, due
to its lifetime coverage, universal life typically has higher premium payments than term.
Needs it helps meet: Universal life insurance is most often used as part of a flexible estate planning
strategy to help preserve wealth to be transferred to beneficiaries. Another common use is long
term income replacement, where the need extends beyond working years. Some universal life
insurance product designs focus on providing both death benefit coverage and building cash value
while others focus on providing guaranteed death benefit coverage.
Whole life insurance is a type of permanent life insurance designed to provide lifetime coverage.
Because of the lifetime coverage period, whole life usually has higher premium payments than
term life. Policy premium payments are typically fixed, and, unlike term, whole life has a cash
value, which functions as a savings component and may accumulate tax-deferred over time.
Needs it helps meet: Whole life can be used as an estate planning tool to help preserve the wealth
you plan to transfer to your beneficiaries.
Insurers use rate classes, or risk-related categories, to determine your premium payments; these
categories don't, however, affect the length or amount of coverage.
Your rate class is determined by a number of factors, including overall health, family medical
history and your lifestyle. Tobacco use, for example, would increase risk and, therefore cause your
premium payment to be higher than that of someone who doesn't use tobacco.
FWD is breathing life back into the insurance business by offering products that speak to the
needs of different people across different lifestyles. Whether it’s for life protection or for
building wealth, we’re here to enable you to do more today and fear less about the future. To
stop hesitating and start doing more of the things that excites you. We’re here to change the way
you feel about insurance by helping you grab the things you want out of life.
Company Background
From Hong Kong and Macau, Thailand, Indonesia, Singapore, Vietnam, and Japan, FWD
is breathing new life into the insurance industry especially in the Philippines where they
continue to expand their product offerings ranging from premium life insurance to wealth
and financial planning services. FWD is focused on creating fresh customer experiences
with easy-to-understand products, supported by leading digital technologies. Through this
customer-led approach, FWD will achieve its vision to become the leading pan-Asian
insurer that changes the way people feel about insurance.
FWD Life Insurance Corporation (“FWD Life”) is the first life insurance company licensed by the
Insurance Commission of the Philippines under the new Insurance Code. FWD launched its
commercial operations in September 2014. Based on premium income data published by the
Insurance Commission, FWD Life ranks 10th in the insurance industry in terms of weighted new
business premiums. By March 2017, FWD Life is the highest-capitalized life insurer in the
Philippines with PhP 2.3 billion in paid-up capitalization.
About Pacific Century Group
PCG has demonstrated a strong track record of successful investing, and has a long-term
sustainable network in Asia and across its core business pillars.
Peace is FWD Life Insurance Philippines’ first digital insurance product that offers financial
peace of mind against acts of terror. Buy now so you and your loved ones can live worry-free.
Benefits at a glance
Personal Peace insures you for a whole year for only PHP 2,000 and Family Peace
insures you and your family for only PHP 3,000. Plus, you have an option to renew every
year.
With Personal Peace, cover yourself for PHP 1 Million for death or disability due to acts
of terror. With Family Peace, insure you and your whole family (yourself, legal spouse,
and children below 18 years of age) for PHP 1 Million each.
No medical tests, no additional documents required, and your choice of payment method
(Credit/Debit cards and Over-the-Counter). It can’t get any easier.
Guaranteed approval
4. Fight Plan
In fighting the Big C, let us take care of money matters so you can take care of what really
matters – getting better and stronger. FWD stays with you and helps you pick yourself up even
when life takes a downturn because you are covered from all types of cancer for 15 years at any
stage.
If the cancer is at the early stage, FWD will give you 20% of the benefit amount with the
remainder of the benefit still available to you should the cancer progress or you are diagnosed
with another cancer.
If the cancer has progressed beyond the early, non-threatening stage, you will receive the full
benefit amount, guaranteed.
FWD will pay up to the full benefit amount, depending on how far the cancer has progressed.
If the cancer has progressed beyond the early, non-threatening stage, you will receive the full
benefit amount, guaranteed.
If the cancer is at the early stage where treatment costs are typically lower, FWD Life will give
you 20% of the benefit amount with the remainder of the benefit still available to you should
the cancer progress or you are diagnosed with another cancer.
Go to greater heights with the most comprehensive coverage against critical illnesses
Tell me more
FWD's Set for Health is a plan that stays with you in good times and in bad. It can help you ease
the financial effects of serious illnesses by allowing you to focus on what really matters—getting
well.
Comprehensive plan with flexible terms - Set For Health plan covers you up to age 75,
with our flexible payment terms that give you the choice and convenience of 5-year, 10-
year, or 20-year options.
Major Critical Illness Benefits - Finally, you've got a plan that doesn't just stop when
you make a claim for critical illness. Set for Health plan allows you to claim up to 3 times
for unrelated critical illnesses.
Waiver of Premium Benefit - If you get diagnosed with your first medical critical
illness, we're waiving future premium payments so you don't have to worry about paying
for your plan during recovery so you can focus on what matters most --being well again.
Death Benefit
- In case the unfortunate happens before you turn 75, FWD will look after your family by
giving them 100% of your plan's coverage amount so they can be financially worry-free..
Healthy Life Benefit - And best of all, get awarded for living healthy! When you reach
75, free from any major critical illness, you get 100% of all your premium payments
back.
With HEALTHY LIFE BENEFIT - Get rewarded with 100% of all your premium payments back by just
staying healthy until age 75.