The Best Affordable Term Insurance in the Philippines

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Sun Life Term InsuranceThe best option for those who want protection but has a limited budget is term insurance. It is cheaper because it only offers pure life insurance protection without any accumulated cash value nor fund value. Thus, term insurance will provide you maximum protection for a minimal cost.

What is Term Life Insurance?

Term life insurance is basically life insurance that provides financial protection to a family. The only difference is that the protection is only for a limited time. The life insurance coverage can be for 1, 5, 10 years, and so on. You can renew this but for a new and higher premium based on attained age

Here’s a short video that explains what term insurance is about.

Definitions You Must Know

But before we dig deeper into the topic. You must familiarize yourself first with some common terms that you’ll be seeing throughout this post. Which can also be helpful to you in your search for a life insurance plan.

  • Insurance Coverage – also known as the face amount or simply the promised amount by an insurance company to the insured.
  • Term – refers to the covered years of the plan. For example, a 5 years term insurance plan is only good for 5 years.
  • Premium – the insured pays this amount in exchange for life insurance protection.
  • Rider – is the additional coverage such as accident and critical illness benefit.
  • Beneficiary – is the elected individual or entity by the insured to receive the benefits.
  • Renewable – the insured has the option to renew the plan after the term.
  • Convertible – a term insurance plan that is convertible into a VUL plan or a whole life insurance plan.

Why term insurance is for you?

term life insurance in the philippines

You might be unsure yet between VUL or term insurance, right? That’s why I listed the reasons why buying a term life insurance is more suitable for you. If you find a reason similar to yours then you should get term insurance.

So here are the reasons why term insurance is for you.

Newly Married Couple or Low Income Earner

Insurance is a basic need that even a newly married couple should have to build a strong financial foundation. But it can be hard on them considering their other financial obligations, i.e. house, bills, groceries, and so on. This makes term insurance a good option for them and low-income earners because it is relatively cheaper.

READ: The Importance of Life Insurance to Every Filipino Family

Term Insurance as Mortgage Redemption Insurance (MRI)

MRI is a requirement by Pag-ibig and banks before approving your housing loan. Term insurance can be used as an MRI in which the bank, where you got your loan, will be elected as the primary beneficiary. The remaining loan is paid using the insurance proceeds while the excess is given to your heirs. Did you ever wonder what will happen to your house without an MRI? Pag-ibig and banks can foreclose the property regardless of how much is the remaining loan. MRI ensures that your family will still have a house to live when you die too soon. Of course, no one is hoping for that, but it’s better to be prepared, right?

Estate Preservation Tool (Estate Planning)

An estate tax is a tax imposed for the privilege of transferring the deceased person’s property to his heirs. Leaving a fortune to your family can be tricky because of the estate tax that’s why estate planning has become popular. Previously, the estate tax was as high as 20% of the gross estate of a deceased person but because of the current tax amendments, it is now down to flat 6%. Considering that all the deceased person is frozen, having a liquid fund to pay the estate tax will speed-up the process of transferring the ownership of the properties. Insurance proceeds may not be subjected to the estate tax, thus making it liquid.

READ MORE: Term Life Insurance | Best Tool for Estate Planning

Additional Protection On-top of Existing Coverage

Anyone who wishes to add life coverage on top of their existing life coverage can get a term life insurance for a minimal cost. Businessmen often opt to buy multiple term insurance to multiply their wealth. This is a good way to add coverage if you don’t have a budget yet to buy whole life insurance. You can also convert it to whole life insurance (and VUL) anytime without proof of insurability.

Buy Term Invest the Difference (BTID)

If you are a BTID advocate/follower then buying term insurance is for you. BTID followers like to have their insurance and investment plans separated from each other, unlike VUL plans. The benefits of having an investment separated from your insurance are good because you’ll have more money to invest in a mutual fund, UITF, stocks, forex, etc. This will speed up the process of wealth accumulation if it’s done right.

READ MORE: The Ups and Downs of Riding the BTID Bandwagon

Why is Term Insurance not for you?

term life insurance in the philippines

Now we’ll have to discuss the reasons why term insurance is not for you. So if you can relate to at least two of the reasons stated below then you must consider getting another type of insurance.

So here are the reasons why term insurance is not for you.

No Cash Value or Fund Value

The premium you pay for term insurance is just enough to cover the insurance charge and after the term, let’s say 5 years, you won’t receive anything even a single cent. So if you are looking for something that will return even a portion of your money then term insurance is not for you.

Increasing Cost of Life Insurance

The charges in term insurance increases after the term. So if you got a 5 years renewable term and paying let’s say Php10,000 every year for Php 1 Million worth of coverage after the 5 years term it’ll become Php 12,000 (based on your attained age). This cycle continues every time you renew your insurance coverage. If you don’t like this setup you might want to reconsider your options.

Grace Period is 30 Days

Term insurance has no cash value nor fund value which means that when you forget to pay your premiums on its due date then it’ll automatically be in a grace period. A grace period is a period given by an insurance company to give their client more time to settle the premium. If not paid then the policy will lapse.

If you want insurance with cash value/fund value then you may want to consider purchasing a VUL plan instead. you can read more about Sun Maxilink Prime by following the link below.

READ MORE: Sun Maxilink Prime | Best-Selling VUL Plan from Sun Life

Sun Life Term Insurance Plans

Sun Life has the most number of available term insurance plans in the Philippines. This gives you a more tailored fit insurance plan for you.

So here are Sun Life’s term life insurance plans.

  1. Sun Safer Life
  2. Sun LifeAssure
  3. The Sun Maiden
  4. Sun Maiden Plus

Sun Safer Life (5 YRCT)

It is a 5 years renewable term insurance from Sun Life that provides guaranteed life coverage equivalent to twice the face amount until age 75. This automatically renews every 5 years until age 74 without any proof of insurability.

Eligibility: 18-64 years old
Minimum Coverage: Php 2 Million
Riders Attachable: Waiver of Premiums (TDB) and Accidental Death Benefit (ADB)
Paying Options: Yearly | Semi-Annually | Quarterly
Convertibility: is convertible into an endowment, whole life plans, and VUL up to age 65

Sun Safer Life

Sun Safer Life Sample Quotation

The best way to understand the table above is through an example. So let’s say you are a 35 years old female and non-smoker. Then looking at the table your estimated annual premium is Php 10,910. But you still have an option in choosing your mode of payment.

Annual Premium: Php 10, 910
Semi-Annually:      Php 5,782.30
Quarterly:                 Php 3,000.25
Monthly:                    Php 1,018.23

Pay it annually if you have the budget because you’ll save more money in return. This is a total of 12% worth of saving compared to paying it monthly.

Sun Safer Life Benefits

Here are the benefits you get from Sun Safer Life.

  • Death Benefit – this is the lumpsum equal to Php 2 Million that your family will receive when you die of natural cause or illness. They can use this to continue their life and achieve the dreams you have for them.
  • Waiver of Premium – an additional benefit attached to the plan. This will keep your plan in force when you become totally and permanently disabled because Sun Life will pay on your behalf.
  • Accidental Death Benefit – an additional amount of Php 1 Million that your beneficiary will get if you die due to an accident. Giving your family a total of Php 3 Million.

If you want a personalized quotation or a fun personal discussion which I totally recommend then you may click [HERE].

Sun LifeAssure (5 YRCT)

Sun LifeAssure is a 5 years renewable term that pays the face amount when the insured dies or when diagnosed with a critical illness, whichever comes first. This is renewable until age 59 without evidence of insurability. This term plan automatically renews every 5 years with a higher premium based on the new attained age.

Eligibility: 18-60 years old
Minimum Face Amount: Php 500,000
Maximum Face Amount: Php 15 Million
Riders Attachable: Waiver of Premiums (TDB) and Accidental Death Benefit (ADB)
Paying Options: Yearly | Semi-Annually | Quarterly
Convertibility: NOT convertible

Sun Life Assure

Sun Safer Life Sample Quotation

Let’s say you are 35 years old, female and non-smoker. Then looking at the table your estimated annual premium is only Php 10,650.

Annual Premium: Php 10, 650
Semi-Annually:      Php 5,644.5
Quarterly:                 Php 2,928.75
Monthly:                    Php 993.96

Sun LifeAssure Benefits

Here are the benefits you get from Sun LifeAssure.

  • Death Benefit – your beneficiary will be entitled to receive Php 1 Million pesos when you die. An amount they can use to continue living the dreams you have for them.
  • Critical Illness Benefit – you will receive Php 1 Million if you get diagnosed or treated from any of the 36 covered critical illnesses. Something that can help you get back your health.
  • Waiver of Premium – it will keep your plan in force when you become totally and permanently disabled because Sun Life will pay on your behalf.
  • Accidental Death Benefit – an additional amount of Php 1 Million that your beneficiary will get if you die due to an accident. Giving your family a total of Php 2 Million.

Get a FREE quotation? Click [HERE].

Sun Maiden (5 YRCT | Female Specific Critical Illness)

A 5 years renewable term insurance specially designed for women. It gives financial assistance when you get diagnosed or treated due to any of the female-specific critical illnesses. It also provides free 5 diagnostic and preventive procedures within the first 10 years of the policy. This can be availed once per year after the first policy anniversary.

Eligibility: 18-55 years old (Sun Maiden) & 18-45 (Sun Maiden Plus)
Minimum Face Amount: Php 500,000
Maximum Face Amount: Php 2Million
Riders Attachable: TDB, ADB, Critical Illness Benefit (CIB)
Paying Options: Yearly | Semi-Annually | Quarterly
Convertibility: NOT convertible

Sun Maiden

5 Diagnostic and Preventive Procedures

Get 5 FREE diagnostics or preventive procedures during the first 10 years of your plan.

  • CA 125 (Ovarian Cancer)
  • Pap Smear
  • Pelvic Ultrasound
  • Breast Ultrasound
  • Mammography

Female Specific Critical Illnesses

  1. Cancer of the Breast, Cervix Uteri, Uterus, Ovary, Fallopian Tube or Vagina or Carcinoma-in-situ of the Uterine Corpus, Ovary, Fallopian Tube, Vagina must undergo the required operation.
  2. Systematic Lupus Erythematosus (SLE)
  3. Rheumatoid Arthritis
  4. Severe Osteoporosis
  5. Hysterectomy or Dilation and Cutterage
  6. Major Plastic Surgery due to Accidents
  7. Skin Transplantation due to accidental Burning

Sun Maiden Plus

Additional maternity benefit of 2%  of the face amount is given for every child delivered. You can claim for a maximum of 3 children. The benefit can only be availed after the 1-year waiting period.

Request for a Proposal NOW!

Protect the future of your family by getting term insurance today. Some terms are technical in nature that an ordinary person may not understand. That’s why I strongly recommend a personal meeting with a licensed Financial Advisor which is FREE of charge. Don’t worry because you won’t be required to get any plans from me. You may not like it and it is perfectly fine with me.

READ: 6 Reasons Why You Haven’t Received a Proposal

40 comments… add one
  • Eman Link Reply

    Hi sir what if I get a term insurance then after a year I work abroad.
    Macacancel ba automatic ung plan?

    • Hi Eman. No, it will not be canceled outright but future claims while working overseas will be automatically declined. However, if your term insurance is convertible to VUL or other plans then you may consider to convert it to keep your insurance. I hope it helped you. Thanks 🙂

  • Christine Link Reply

    Hi Federico. Can my parents still get term insurance at the age of 83/82 years old? Thank you

    • Hi Christine. Sadly, we can’t insure them anymore even in other types of insurance plans of Sun Life. But I think you may still get one for yourself. Thanks 🙂

  • Tony Link Reply

    Hi Derico,
    I’m currently here in KSA and wanted to get some insurance once I come home. Just want to ask which is better from these two, Sun Safer Life (5YRCT) or Sun LifeAssure (5 YRCT).
    Thank you.

    • Hi Tony. Are you planning to stay in the country for good? If not, it’s sad to say but we don’t offer term insurance for OFWs. You may want to consider getting other tradional plan or VUL plan. Thanks 🙂

  • mzwire Link Reply

    More info pls …tnx

    • Federico Suan, Jr. Link Reply

      Hi. May I know what info you need. Let’s talk more thru email. Thanks 🙂

  • omar Link Reply

    I’m interested to get a term life with health insurance for me. I am interested on the 15 year term which is the maximum.

    • Federico Suan, Jr. Link Reply

      Hi Omar. Sadly, we only have 5 years of renewable term life insurance from Sun Life. Just let us know if you’re interested. Thank you 🙂

  • ALOHA SALVA Link Reply

    Im an OFW in Abu Dhabi, 39 yo. im interested with Sunlife Maxi Prime. How can I avail? Is it possible even im outside philippines? im willing to submit all requirements.

    • Federico Suan, Jr. Link Reply

      Hi Aloha. Good to know that you’re really into getting a life insurance plan. However, documents must be personally signed. It would be my pleasure meeting you in the future to assess your needs and discuss your options. Thanks 🙂

  • Gerimee Dapat Link Reply

    Can I convert my VUL into term? Please enlighten me.

    • Federico Suan, Jr. Link Reply

      No, you can’t. You can ask your advisor to consult for any changes in the plan. Thanks!

  • Christine Link Reply

    Hello Federico! OFW here, im returning home and staying for good. question lang po, does applying for insurance needs credit check? i want to avail term insurance as soon as i get home, just wondering kung kailangan pa ba ng credit check cause definitely hindi ako papasa because i dont have work paguwi. Thank you

    • Federico Suan, Jr. Link Reply

      Hi Christine. You can declare naman na galing sa savings yung payment. If you want assistance. Please let me know. Thanks!

  • Kat Link Reply

    Hello! Request for proposal for term insurance, thank you!

    • Federico Suan, Jr. Link Reply

      Hi Kat. Please kindly fill out the form. As you can see, the info will be used to remotely assess your needs. Thanks!

  • Christine Link Reply

    Hi Sir my mom is 60 year old, non smoker, what is the best insurance for her? And the cheapest since we only have a limited budget. Thanks

    • Federico Suan, Jr. Link Reply

      Hi Christine. If you’re looking for the cheapest life insurance then term is your best choice BUT this is not a guarantee that your mom will be insured. Due to age and current health condition she may be issued a plan with a higher premium. Much of this is best discussed in person. You can meet an advisor to help you out with this. Thanks!

  • Russel Alfeche Link Reply

    My mother is 61 y/o, what’s the best and most cost-efficient life insurance plan for her you can offer?

    • Federico Suan, Jr. Link Reply

      Hi Russel. Please kindly send an email about your request. Thanks!

  • Jay Link Reply

    Hi,
    This article is very helpful, thanks. I want to receive a quote for a term insurance for my parents; mom (61) dad (60).
    Your response will be much appreciated.

    Thanks

    • Federico Suan, Jr. Link Reply

      Hi Jay. Just let me know if I could be of help to you in the future. Thanks again!

  • Hi Mr. Federico, I want to know more about the insurance. Could you drop me a mail and discuss the matter. Thanks!

    • Federico Suan, Jr. Link Reply

      Hi Nina. I’ll be sending an email. Please kindly reply on that. Thanks!

  • Nesh Link Reply

    Hi!
    Please send proposal for a 64 year old female…non smoker.

    • Federico Suan, Jr. Link Reply

      Hi Ms. Nesh. You may still apply for a Sun SaferLife but due to age, you may be subjected to medical test/s deemed necessary by our underwriters. I’ll send an email please kindly reply to it. Thanks!

  • Paola Link Reply

    Is it possible to convert VUL to term insurances?

    • Federico Suan, Jr. Link Reply

      Hi Paola. Some term life insurance can be converted like Sun Safer Life. Thanks!

  • Ben Link Reply

    I am planning to get an insurance but i don’t have any idea yet on how to start and which is good for me..please give me some details about it…

    • Federico Suan, Jr. Link Reply

      Hi Ben. There’s a lot of materials on the internet please kindly search it out or my blog. I have blog posts about that. Better if you can allocate time for a sit-down discussion about it. Thanks!

  • Wesley Paira Link Reply

    Hi,

    I am browsing on Insurance plans for my mother and little brother and I’m considering on getting policies thru Sun Life. Can you help me through it?

    • Federico Suan, Jr. Link Reply

      Hi Wesley. You may kindly reach me thru e-mail so we can get it started. Thanks!

  • Jhen Link Reply

    Hello,if an ofw wants to availed insurance, it’s possible through online transactions or need personal appearances? Thanks in advance

    • Federico Suan, Jr. Link Reply

      Hi Jhen. Need ng personal appearance too see if insurable siya at a glance. Pero you may still be required to submit yourself to medical tests na need ni Sun Life. Thanks!

  • Erwin Link Reply

    Is it possible to get a term insurance for an individual aged 70+ years? If so, can i get a sample computation for 5 years and 10nyears.

    • Federico Suan, Jr. Link Reply

      Hi Sir Erwin. Sadly, we only have term insurances available until age 64 (though renewable until 75).

  • Ann Link Reply

    Send me details about sunlife and it’s products. Thanks

    • Federico Suan, Jr. Link Reply

      Hi Ann. Thanks for dropping by. You may browse our articles about it. I’ll also get in touch with you by email. Thanks!

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