What life insurance company to invest in 2019?

Getting life insurance should be a choice that everyone has. In the Philippines, many people get intimidated and scared into not buying a life insurance plan because they feel forced into getting the policy. This should not be the case. It should be encouraged, and people should understand why getting insured would be beneficial for them.

Choosing the right insurance company

For people who are half-hearted in wanting a life insurance policy would be more confused when they realize that there are so many insurance companies. They would be somewhat overwhelmed in choosing the right one. Many people would give up halfway toward making the choice.

Most companies would offer more or less the same products, although some would have a product or service that is unique to that company. All insurance products here in the Philippines are covered by the Insurance Commission, which makes sure they comply with Philippine law.

Deciding on choosing a life insurance policy would depend on your needs. Many people don’t realize this but a life insurance plan can be customized to fit the needs of the policyholder. If you do a Google search on the top companies in the country, you would see a list. Don’t let that list confound you. Those companies are ranked based on their net worth. Not really on the quality of products they provide.

Instead of discussing the companies based on that list one by one, we think that you would benefit more in knowing what good elements can be included in a life insurance policy. With this information, you can later choose an insurance company based on the riders and inclusions they have on their policies.

Riders are extra benefits that are included in the life insurance policy, outside of the usual inclusions that all life insurance policies should have, based on the Insurance Commission. A regular insurance policy should include a sum insured that would keep the policyholder insured in case of death, a list of beneficiaries and other common elements.

You can choose the insurance company based on the riders that they offer.

Health benefit. Some companies would offer this benefit as a way of safeguarding their policyholders from illness. There would be a list of 100 illnesses, and if the insured person would be diagnosed with one or more of these illnesses, the insurance company would provide the medical coverage.

Family income rider. This rider would keep the income coming in even in the case of the death of the insured person. It would guarantee that the family of the policyholder would not go into financial ruin because of the sudden death of the person whom they are financially dependent on.

Return of premium rider. With this rider, you can be sure that after you finish paying for your policy, the premiums you paid will be returned to you in full. In case of death, the premiums will be given to your beneficiaries. They will receive the paid premiums amount in full.

Child term rider. This rider is a bit grim, but it answers to the reality that the death of a child does sometimes happen. It would provide a death benefit to a child who would pass away before a certain age. 

Other riders are available but these are the ones that stood out the most because not all insurance companies would offer them. Remember that choosing an insurance company should be based on your needs. List down the financial needs you have, look into the future to see what needs you foresee yourself and your family have, and inquire with your financial adviser based on those needs.