Advantages of Life Insurance Policies in the Philippines | Allianz PNB Life (2024)

You might have also started improving your diet to better care for yourself. Instead of spending money on junk food and fast food, you buy healthier meals or cook homemade dishes that will provide you with the nutrition you need for the day.

Aside from these lifestyle changes, Filipinos have also started investing more money into their health. According to the Insurance Commission (IC), Filipinos have increased the amount of money they invest in insurance policies. From P723.43 in 2020, Filipinos raised their average spend on insurance to P912.2 in 2021, which shows a 26% increase.

But what exactly makes Filipinos willing to put their money into life insurance policies? If you're interested in protecting yourself by getting a life insurance policy, you must learn about the different benefits of life insurance in the Philippines.

One of the main advantages of getting a life insurance plan in the Philippines is that you can receive tax-free payouts from your insurance company. Because life insurance payouts are not considered income, the lump sum your beneficiaries receive won't be taxed by the government.

This means that no matter how big your death benefit is, your loved ones won't have to worry about losing a portion of it to taxation. They can use the whole amount of your life insurance policy to cover any expenses.

Life insurance doesn’t only offer death benefit but also coverage for a critical or chronic illness. This is possible if the insurance company you choose offers riders, as most of them do. It is a type of insurance policy provision that allows you to add benefits to your policy or adjust its coverage.

When you add a critical illness rider to your life insurance policy, you're ensuring that you have a safety net in case you suffer from a debilitating disease, such as cancer, stroke, or heart attack. With this rider, the insurance company will give you a lump sum benefit if you're diagnosed with a covered critical illness. You can then use this money to cover your medical expenses or make sure that your loved ones are financially taken care of.

Hospitalization is not cheap. Here in the Philippines, you need to prepare thousands of pesos for a day of confinement. A minor surgery, if done in a private hospital, may even cost you hundreds of thousands. And for a middle-income earner, this could be a financial burden.

Fortunately, with a life insurance plan, you don't have to worry too much about the expenses you will incur while hospitalized. This is because most life insurance policies include a hospitalization benefit rider that will give you a certain amount of money for each day you're confined in the hospital, up to a maximum limit. You can also use the payout from this rider to cover your hospital bills, medication, and other related expenses.

One of many Filipinos who benefited from the hospitalization benefit of their life insurance policy is Antonio "Tonyboy" Aquino. He is a 63-year-old Allianz Well! policyholder who underwent an angioplasty operation and a triple heart bypass surgery in 2021. With his life insurance policy benefit, he was able to save more than three million pesosworth of hospitalization and medical expenses.

Investing in a life insurance policy can provide your family with economic benefits. This is especially true if you're the primary breadwinner of your household.

In the event of your untimely death, your loved ones will receive a lump sum benefit that they can use to cover their living expenses, such as the mortgage, utility bills, groceries, and other daily needs. This benefit can help your family maintain their quality of life even when you're no longer around.

A mid-range funeral service in the Philippines can cost up to 250,000 pesos, which is not cheap. Because most Filipino families do not have enough savings to pay for this unexpected expense, arranging a funeral can be a huge financial burden for them.

Fortunately, with a life insurance policy, you can leave your loved ones with a death benefit that they can use to cover your funeral and burial expenses when you pass away. This way, you can make sure that your final send-off will be taken care of, and your loved ones won't have to shoulder the financial burden of your death or take out loans.

A life insurance policy is not only for protecting your loved ones in case of death. You can also use it to ensure you can live a comfortable life during your golden years.

Aside from providing you with coverage, some life insurance policies allow you to accumulate cash value over the years. You can then withdraw this cash value to pay for your expenses once you've retired. However, remember that any withdrawals you make may affect your death benefit amount.