Insurance

CHAPTER 7
INSURANCE
Presented by Avery Davis

do you need life
insurance?
do you
understand life
insurance?
do you have enough
money to pay for
your final expenses

like a funeral?
how about in the
future? like aging,
parents,perhaps.
do you plans on
having a children in
the future?
LIFE INSURANCE
TERM LIFE
A type of life insurance policy that provides
coverage for a certain period of time, or a specified
"term".
If the insured dies during the period specified in
the policy and the policy is active or in force, death
benefits will be paid.

It is initially much less expensive compared to
permanent insurance.
LIFE INSURANCE
TERM LIFE
It is the plain vanilla of life insurance; it is what we
call pure insurance.

It provides only death benefit protection, has no
cash value and not much versatility.

LIFE INSURANCE
PERMANENT
An umbrella term for life insurance plans that do
not expire (unlike term life insurance) and combine
the death benefits with a savings component.

WHOLE LIFE PERMANENT INSURANCE
Referred to as "traditional life insurance"
Matures at age 100 and has level premium
Has guaranteed cash value premium
Can earn policy dividends
LIFE INSURANCE
PERMANENT
ENDOWNMENT LIFE INSURANCE
Like whole life policies but shorter maturities
May have fixed maturity at the end of contract or
may pay out some amount during the life of the
contract (anticipated)
LIFE INSURANCE
PERMANENT
VARIABLE UNIVERSAL LIFE INSURANCE
Also known as Unit-Linked Insurance
The underlying values can be invested (at the
direction of the policy owners) in many sub-
accounts such as equity, fixed income, and
balanced account options.

VARIABLE
UNIVERSAL LIFE
INSURANCE
life insurance
It guarantees certain amount pass on to your
family in case something happens to you. They'll
be assured of continuing income and address
final expenses.
INVESTMENT FUNDS
It gives you potential return. Since the underlying
assets are bonds and stocks, historically, they're
know to beat inflation and gives better returns.
DIVERSIFIED
It gives the opportunity to have a basket of
investments. You are invested in several
companies. Being diversified is a good practice to
manage risk.
PROFESSIONAL MANAGEMENT
You have instant knowledge and expertise given
by the fund managers as they manage the funds
for you.
HEALTH IS WEALTH
Are you prepared to
handle the rising cost of
a serious illness?
6 out of 10 deaths
6 out of 10 were not medically
attended.
71% of all deaths were
71 % attributed to critical
illness such as heart
diseases, cancer, and
pneumonia
2 Million Pesos is the
2M average cost of
treating a critical
illness.
MEDICAL INSURANCE
Pays you a sum of money in the event
of health-related conditions as
stipulated in your policy.

Most are settled through
reimbursements.
HMOs
Provides access to medical facilities at
the time of need, in exchange for
membership fees up front

Smaller limits as compared to medical
insurance
what type of
insurance should i
have?
There is NO such thing as a
"best" life insurqance policy.
The type of insurance you
should get would depend on

your goals or needs and
affordability.
TYPES OF INSURANCE Plans
If you want insurance coverage with
guaranteed savings and are willing
to accept low returns, go for a
TRADITIONAL LIFE POLICY.
If you want insurance coverage with
better returns but with volatility, go

for a VARIABLE UNIVERSAL LIFE
(VUL) INSURANCE.
TYPES OF INSURANCE Plans
If you just want the plain vanilla
insurance, meaning no cash
value or potential returns, go
for a TERM INSURANCE PLAN.

Would you want to combine
your insurance with savings
& investment or would you
want to do it separately? You
can BUY TERM AND
INVEST THE DIFFERENCE
(BTID) or buy a VUL PLAN
to do that for you.

WHO SHOULD YOU BUY
YOUR LIFE INSURANCE
FROM?
COMPANY CHECKLIST
From Top 10 Life Insurance
Companies in the Philippines;
the Insurance Commission
releases a yearly ranking.

Good after-sales/ customer
service
Good claims-paying
reputation
Check investment
management fees (if VUL)

INSURANCE ADVISOR CHECKLIST
Knows the products
thoroughly
Can give a straight answer to
your inquiries
Conducts business
professionaly
Will put your interest first
before the sale

NON LIFE INSURANCE
HOME INSURANCE
provides coverage from natural disasters, robberies,
and water damages and may offer additional
benefits such as a relocation allowance, legal
assistance, and medical (ICU) assistance.

HOME INSURANCE
SHOULD I GET ONE?
If you live in an area prone to natural disasters
If your home (e.g. secondhand) has a history of
being neglected and is prone to water leaks and
bursts, pipe damage, etc.

If you live in an area prone to malicious events such
as thefts.
TRAVEL INSURANCE
premium is a small price to pay in the event of a
accident, such as losing your luggage. If you plan to
travel far away and expect to buy a lot of new
belongings, maybe you should consider availing it.

TRAVEL INSURANCE
SHOULD I GET ONE?
If you possess or expect to bring home valuable
items
If your carrier has a reputation of providing sub-par
services and has received negative feedback from
customers
CAR INSURANCE
It includes protection against accidents and theft
and provides roadside and sometime medical
assistance and coverage as well.

CAR INSURANCE
SHOULD I GET ONE?
if your car is your primary means of transportation
if you drive on roads that are accident-prone

If you have a vehicle. It's the law (for Compulsory
third party liability CTPL insurance)

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CHAPTER 7

Presented by Avery Davis

money to pay for

your final expenses

future? like aging,

coverage for a certain period of time, or a specified

the policy and the policy is active or in force, death

benefits will be paid.

call pure insurance.

cash value and not much versatility.

not expire (unlike term life insurance) and combine

the death benefits with a savings component.

may pay out some amount during the life of the

direction of the policy owners) in many sub-

accounts such as equity, fixed income, and

balanced account options.

handle the rising cost of

6 out of 10 were not medically

71% of all deaths were

illness such as heart

diseases, cancer, and

2 Million Pesos is the

stipulated in your policy.

the time of need, in exchange for

membership fees up front

"best" life insurqance policy.

The type of insurance you

should get would depend on

guaranteed savings and are willing

to accept low returns, go for a

TRADITIONAL LIFE POLICY.

If you want insurance coverage with

better returns but with volatility, go

insurance, meaning no cash

value or potential returns, go

for a TERM INSURANCE PLAN.

your insurance with savings

& investment or would you

want to do it separately? You

can BUY TERM AND

INVEST THE DIFFERENCE

(BTID) or buy a VUL PLAN

to do that for you.

YOUR LIFE INSURANCE

Companies in the Philippines;

the Insurance Commission

releases a yearly ranking.

management fees (if VUL)

before the sale

provides coverage from natural disasters, robberies,

and water damages and may offer additional

benefits such as a relocation allowance, legal

assistance, and medical (ICU) assistance.

being neglected and is prone to water leaks and

bursts, pipe damage, etc.

premium is a small price to pay in the event of a

accident, such as losing your luggage. If you plan to

travel far away and expect to buy a lot of new

belongings, maybe you should consider availing it.