Did you know that there are two types of credit cards? Well, they are just the same plastic card that you can use for your purchases. The only difference is that a secured credit card needs a hold-out deposit. In case of default, the bank can easily claw back its money. While on the other hand, an unsecured credit card doesn’t require a deposit.
[continue reading…]When you are just starting with investments, it can be challenging to know where to begin. There are so many different investment options available, and it can be hard to determine which ones are right for you. This blog post will discuss four easy investment strategies that are perfect for beginners. We will also provide some tips on how to get started with investing. So if you’re ready to get started, keep reading!
[continue reading…]Retirement planning is never easy, but the best advice is to start as soon as possible. The longer you spend planning for retirement, the more financially stable you will be when you retire. How should you plan for this part of your life? Well, here are three things you should consider doing:
[continue reading…]VUL is one of the best-selling types of life insurance plans in the Philippines. It’s a combination of life insurance protection coupled with investment similar to a mutual fund. It’s a very popular plan for millennials as it can help jumpstart their journey toward financial freedom.
[continue reading…]Being new in the workforce and managing salary is quite a daunting task. It can be very difficult to strike a balance between what you want and need. Adding all the sales in malls or from your favorite stores can really mess up your cash flow that’s why you need to do budgeting. I’ll be sharing a budgeting idea that I’ve been using for years and it’s called the 50-30-20 rule. This is just a simple and yet very easy-to-follow budgeting idea that you can do to improve the way you handle money.
[continue reading…]Yes, I made it! This is the 4th year of TheWiseGuyPH. As a celebration, let me share with you the 5 life lessons I learned from blogging as my 100th post. You know being an independent blogger especially in the Philippines is hard but fun. I started without knowing what to do and look at where this blog is now. The challenges did not stop me from producing quality content for my readers, like you. So thanks to all of you for patronizing my creative space.
Many financial experts hate the VUL plan and some may even tag it as a scam. If you’re following one of them you might be convinced that it’s really a scam. And I can’t blame you. But don’t get me wrong. This article is not meant to refute their claims or support them. I just had an urge to explain some things that I think are also important in your decision-making. So put down your pen and make sure you read this before you sign your insurance application.
[continue reading…]Filing tax is now made hassle-free using the e-BIRForms. Wherein you can file your taxes using the offline e-BIRForms. You can use it to file your annual registration and taxes at the comforts of your home.
[continue reading…]Today I turned 29. Oh, I suddenly feel so old. You know, this blog was created to add value to my readers, to you. I used this as an instrument, to amplify my voice, to reach as many, to help others. But hey, I have to stop here, my blog today shouldn’t be so formal.
[continue reading…]Updated: May 19, 2021
In 2019, the Current Health Expenditure (CHE) in the Philippines rose to Php792.6 billion based to the Philippine Statistics Authority (PSA). CHE is the total amount spent by the government, HMO providers, insurance companies, and out-of-pocket (OOP) shouldered by Filipinos for health care.
And 47.9% of which is from the individual pockets of Filipinos.
As a result, a huge health insurance gap to address. As it pushes approximately 1.5 million Filipinos into poverty each year. Consequently, it forces families to cut back on education and some important spending.
Hence, insurance companies must work harder to fill this gap. On the other hand, we have seen improvements in out-of-pocket expenditure from 56.3% in 2017. This translates to a small improvement in the overall health care in the country.
Table of Contents
Certainly, the pandemic shocks the world, especially the medical industry. However, challenges in health care are an existing problem in the country. In other words, it was only amplified by the COVID-19 pandemic.
Many Filipinos died because they cannot access the medical treatment they needed. While some survive, only to face poverty. Here, the great need for life and health insurance plays a vital role in nation-building.
In 2017, there were about 4 Million Filipinos covered by HMO with an average maximum benefit limit (MBL) of Php150,000 only. Definitely a great help to ailing employees. However, it is not enough to cover major medical health concerns such as stroke, cancer, heart attack, etc.
Firstly, it may give you a false security blanket that your coverage is enough. Furthermore, a stroke costs around Php 1.8 million. In addition, a heart attack costs Php 900,000, breast cancer at Php 430,000, and lung cancer at Php 2.7 million.
Meanwhile, the difference between the MBL and the actual cost of treatment is what we call the “out-of-pocket”. Here, you have two choices when you get ill.
First, to personally cover the medical cost by selling your properties, using your savings intended for other things, such as the education fund of your kids, building a house, starting a business, etc. Second, to transfer the risk to an insurance company by getting life and health insurance.
Many companies are claiming the number 1 spot as the top life insurer. There are even blogs and websites that decided to consolidate the data from the insurance commission (IC) to come up with their own ranking. Don’t worry, this blog is here to help you with the confusion.
In April 2021, IC released 5 financial reports, and different companies topped each metric. But among the 5 categories, only one of them is widely used to come up with the top 10 life insurance companies in the Philippines in 2021. It is not just in the Philippines, but the entire life insurance industry in the world, and that’s “Premium Income.”
Premium Income is the revenue that an insurer receives as premiums paid by its customers for insurance products. When a customer purchases an insurance product, such as a health insurance policy, the customer’s cost for a specified term of the policy is called the premium. (Investopedia)
But it doesn’t mean that other metrics are not important. For instance, you can use them to know the overall financial health of a company. So here’s a way to interpret each category.
It is the combination of past and present business of the insurance company. The past business is often called the renewal premiums. And a good percentage of renewals means that clients are happy with the services so they continue paying for their plans. On the other hand, it means that the company made quality business. While the present business is what we call the NBAPE.
It signifies the sales performance of an insurance company in a given year. Therefore, acquiring new business is very important. That is to say, new business is a reflection of how the general public perceives a company. Thus, growth is desirable. While a decline might mean losing interest or trust.
Basically, it is the income minus expenses. It shows how profitable the business is. Importantly, you must consider profitability because you will be placing your hard-earned money through insurance. Of course, you want the company to be there when the time comes.
It is equal to the assets minus liabilities. Certainly, it shows the capacity of a company to cover its liabilities such as claims. And you can look at this to foresee if the net worth of a company will be enough for future claims.
It is composed of current and fixed assets. Here you can see how the company manages its assets. Thus, a good company should have growing assets to support the business and sales.
Sun Life is hailed as the number one insurer of 2021. It is based on the latest performance released by the Insurance Commission last April 2021. Thus, It is the 10th consecutive time that Sun Life managed to top the premium income category both in traditional (whole life, term, and endowment) and variable plans.
So why it’s important to be the number one (or to be included in the top 10) insurance company?
Because it serves as a validation that companies like Sun Life can still fulfill their promise to their clients.
Remember that life insurance is an aleatory contract or a contract of promise that when a specified event occurs like death, then the insurer will have to pay the promised amount.
Of course, you want your family to get the benefits by the time it happens to you, right?
It is why it’s important to consider the standing of an insurance company before availing of any insurance plan. You want that by the time the need arises, the company is still performing well to fulfill its obligations to you. But this shouldn’t be the sole basis for getting a plan might as well consider convenience, customer service, a reputable Financial Advisor, etc.
If you want income protection with a wealth accumulation plan, then a VUL plan is perfect for you. A VUL plan is designed to give you financial security and peace of mind while growing your money over time. You can request a quotation and financial consultation by following the link below.
READ: Sun Maxilink Prime | Best-Selling VUL Plan of Sun Life
If you want a cheaper VUL from Sun Life, then you can follow the link below. It is for those who are looking for another VUL plan with a cheaper tag. It has better life insurance coverage than Sun Maxilink Prime but with a lesser investment fund.
READ: Sun Maxilink 100 | Affordable VUL Plan from Sun Life
*****
Now, let us get to know more about the other companies that complete the list. To clarify, the top 10 life insurance companies in the Philippines are based on premium income. Importantly, the table was only made to summarize the overall performance of each company.
| Insurance Company | Premium Income | NBAPE | Net Income | Net Worth | Total Assets |
|---|---|---|---|---|---|
| Sun Life | 1 | 2 | 1 | 2 | 2 |
| AXA | 2 | 3 | 5 | 6 | 3 |
| Pru Life UK | 3 | 1 | 4 | 7 | 5 |
| Philam Life | 4 | 9 | 2 | 1 | 1 |
| BPI-Philam | 5 | 5 | 7 | 5 | 7 |
| Manulife | 6 | 6 | 3 | 4 | 6 |
| PNB Life | 7 | 8 | 13 | 26 | 9 |
| BDO Life | 8 | 7 | 30 | 8 | 8 |
| FWD | 9 | 4 | 12 | 12 | 12 |
| Insular Life | 10 | 12 | 6 | 3 | 4 |
So here are the top 10 life insurance companies in the Philippines 2021.
Officially founded in 1895, making Sun Life of Canada (Philippines) was the first and the oldest life insurance company in the country. The ability to fulfill its promises to its clients has made Sun Life as the preferred life insurance company in most households. No wonder why it is still the top life insurance company in the country.
READ: Sun Life | A Company that Loves to Pay Claims
➡ Premium Income: 1
⬇ NBAPE: 2
➡ Net Income: 1
➡ Net Worth: 2
➡ Total Assets: 2
Sun Life remained number 1 in the Premium Income category for 10 consecutive years. While it dropped to second place in NBAPE by a very small margin. However, it still managed to be profitable despite the pandemic and was hailed as the top performer in Net Income. While it maintained being 2nd in net worth and total assets.
READ: Sun Maxilink Prime | Best-Selling VUL Plan of Sun Life
AXA Philippines was only established in 1999 in the Philippines but has shown massive growth and market penetration thanks to its bancassurance business. It is a joint venture between AXA Group and Metrobank Group.
⬆ Premium Income: 2
⬇ NBAPE: 3
⬆ Net Income: 5
⬇ Net Worth: 6
⬇ Total Assets: 3
The company started in 1996 or 23 years in the life insurance industry in the Philippines. Despite being relatively new compared to its rivals, Pru Life UK bagged 3rd place in the list.
⬇ Premium Income: 3
⬆ NBAPE: 1
⬇ Net Income: 4
⬆ Net Worth: 7
⬆ Total Assets: 5
Philam Life was founded in 1947 by Cornelius Vander Starr and partner Earl Carrol. Their incredible partnership has made Philam Life the number 1 life insurance company in 2 years, 1949, in the business.
⬆ Premium Income: 4
⬇ NBAPE: 9
➡ Net Income: 2
➡ Net Worth: 1
➡ Total Assets: 1
Previously known as Ayala Life Assurance Incorporated, founded in 1933. It is the country’s top bancassurance on the list thanks to the strategic alliance between BPI and Philam Life.
➡ Premium Income: 5
➡ NBAPE: 5
⬆ Net Income: 7
⬆ Net Worth: 5
⬇ Total Assets: 7
Manufacturers Life Ins. Co. (Phils.) or just Manulife is a wholly-owned subsidiary of The Manufacturers Life Insurance Company. It was established in 1907, making it one of the oldest insurance companies in the Philippines.
⬇ Premium Income: 6
⬇ NBAPE: 6
⬆ Net Income: 3
➡ Net Worth: 4
⬇ Total Assets: 6
Allianz PNB Life was founded in 2001, operating as a subsidiary of Alliance SE. The company has shown incredible growth coming from 10th place last year to being 9th in the top 10 life insurance companies in the Philippines.
⬆ Premium Income: 7
⬆ NBAPE: 8
⬆ Net Income: 13
⬇ Net Worth: 26
⬆ Total Assets: 9
It was founded in 1999 as a joint venture between Generali Pilipinas Holdings Company Inc. (GPHC) and BDO. Generali is now renamed BDO Life Assurance Co. Inc.
⬇ Premium Income: 8
⬇ NBAPE: 7
⬇ Net Income: 30
⬇ Net Worth: 8
➡ Total Assets: 8
FWD was launched in the Philippines in 2014. Despite being a relatively new player in the industry they manage to be included in the top 10 life insurance companies in the Philippines.
⬆ Premium Income: 9
⬆ NBAPE: 4
⬆ Net Income: 12
⬆ Net Worth: 12
⬆ Total Assets: 12
Insular Life is the first Filipino-owned life insurance company in the Philippines founded in 1910. It is a mutual company, which means its policyholders own it.
⬇ Premium Income: 10
⬇ NBAPE: 12
⬇ Net Income: 6
➡ Net Worth: 3
⬇ Total Assets: 4
Getting more clients means generating more income that can be used for business expansion and payment of claims. It can also lower administrative and insurance charges, thus, more allocation in the investment fund of your VUL plan or dividends for a traditional plan. Pru Life UK dominated this category with Php 7.9 billion worth of new business premium. Sun Life comes in 2nd with a small margin at Php 7.8 billion.
You may refer to the table below for a more comprehensive look at the performance of each life insurance company in 2021.
| Insurance Company | NBAPE |
|---|---|
| Pru Life Insurance Corp. of U.K. | P7,950,610,172 |
| Sun Life of Canada (Philippines), Inc. | P7,800,338,556 |
| Philippine AXA Life Insurance. Corp | P4,805,192,239 |
| FWD Life Insurance Corp. | P2,872,145,988 |
| BPI Philam Life Assurance Corp., Inc. | P2,833,506,107 |
| Manufacturers Life Ins. Co. (Phils.), Inc., The | P2,757,772,799 |
| BDO Life Assurance Company, Inc. | P2,261,607,566 |
| Allianz PNB Life Insurance, Inc. | P2,233,140,100 |
| Philippine American Life & Gen. Ins. Co. | P1,861,860,556 |
| United Coconut Planters Life Assce. Corp | P1,477,778,436 |
In a nutshell, net income is the total profit of a company after subtracting all the expenses in operating a business. Sun Life was able to claim the number 1 spot in net income.
| Insurance Company | Net Income |
|---|---|
| Sun Life of Canada (Philippines), Inc | P8,467,831,223 |
| Philippine American Life & Gen. Ins. Co. | P4,522,387,252 |
| Manufacturers Life Ins. Co. (Phils.), Inc., The | P4,048,885,103 |
| Pru Life Insurance Corp. of U.K. | P3,274,475,424 |
| Philippine AXA Life Insurance. Corp | P2,832,628,279 |
| Insular Life Assce. Co., Ltd., The | P2,695,144,575 |
| BPI Philam Life Assurance Corp., Inc. | P1,432,222,722 |
| Sun Life GREPA Financial, Inc. | P958,088,123 |
| United Coconut Planters Life Assce. Corpn | P674,222,268 |
| Manulife Chinabank Life Assurance Corporation | P382,850,460 |
Philam Life maintained the number 1 spot in the net worth category or the amount by which the assets exceed their liabilities. It is followed by Sun Life, Insular Life, and Manulife, respectively.
| Insurance Company | Net Worth |
|---|---|
| Philippine American Life & Gen. Ins. Co. | P78,437,432,778 |
| Sun Life of Canada (Philippines), Inc | P31,342,290,335 |
| Insular Life Assce. Co., Ltd., The | P28,218,651,477 |
| Manufacturers Life Ins. Co. (Phils.), Inc., The | P12,860,959,603 |
| BPI Philam Life Assurance Corp., Inc. | P8,817,496,193 |
| Philippine AXA Life Insurance. Corp | P8,044,250,809 |
| Pru Life Insurance Corp. of U.K. | P6,106,195,028 |
| BDO Life Assurance Company, Inc. | P5,275,716,39 |
| Sun Life GREPA Financial, Inc. | P4,220,141,927 |
| United Coconut Planters Life Assce. Corp | P3,032,631,184 |
An asset is anything expected to bring future benefits by generating cash flow, reducing expenses, increasing sales, etc. Philam Life has once again dominated this category having Php 291.2 billion assets. Being followed by Sun Life with Php 274.2 billion.
| Insurance Company | Total Asset |
|---|---|
| Philippine American Life & Gen. Ins. Co. | P291,223,060,576 |
| Sun Life of Canada (Philippines), Inc. | P274,212,700,617 |
| Philippine AXA Life Insurance. Corp | P141,500,316,009 |
| Insular Life Assce. Co., Ltd., The | P140,928,039,691 |
| Pru Life Insurance Corp. of U.K. | P117,193,453,060 |
| Manufacturers Life Ins. Co. (Phils.), Inc., The | P117,133,189,676 |
| BPI Philam Life Assurance Corp., Inc. | P112,255,295,695 |
| BDO Life Assurance Company, Inc. | P68,467,307,840 |
| Allianz PNB Life Insurance, Inc. | P51,615,114,149 |
| Sun Life GREPA Financial, Inc. | P48,574,787,007 |
RELATED: Sun Maxilink Prime | Best-Selling VUL Plan of Sun Life
Looking for the right insurance plan as a first-time insurance buyer is such a daunting task. Don’t worry it’s fine. Everyone started somewhere. And after getting your first insurance choosing the succeeding plans is much easier.
But for now, you may follow the steps below in picking the “right” plan for you.
First, narrow down your choices by picking 5 companies from the top 10 life insurance companies in the Philippines 2021. And then determine what important qualities you are looking for like positive customer service, financial standing, and competitive pricing.
But when we say price, cheapest doesn’t mean it’s the best insurance. Look at the value first before its price.
Let me ask you this, “What are your top 5 priorities.” Before getting those proposals at your disposal you must understand yourself first. Don’t be one of those people who just got an insurance plan without a goal.
Is it for your family, you want to protect them from financial struggles? Nowadays, rapidly increasing medical care is a concern. Maybe you want to secure the future of your kids by providing the best education and a roof over their heads. Some people think about retirement or what to do as a retiree. Perhaps open a business to keep you busy?
So make sure to reflect on how important this decision is for you. I’ll tell you getting insurance is a long-term commitment. Problems will shake you from time to time. You might surrender the plan without a clear purpose of why you started. I know you don’t want to waste your time and money. Thus, set your goals at this point.
Get in touch with an advisor in each company and set a meeting either face to face or virtual, i.e. Zoom. Mind you, this is for your future so don’t just browse the pages of the proposals as if you are browsing a menu. You are not in a restaurant.
Life insurance is for your future so take time to have a sit-down discussion.
Here are some qualities to look for in an advisor.
Choosing the right advisor is as hard as picking the most suitable insurance plan for you. An insurance plan is like proof of how much you care for your family. On the flip side, an advisor is your partner or let’s say the caretaker of the proof. So be mindful of considering a reachable, knowledgeable, and dependable advisor.
At this point, you may now prepare for questions that concern you the most. You don’t have to be computing all the costs here like charges and what goes here and there. Remember, in step 3, you already set your goals. Price is should not be the basis but its value proposition.
If you are able to get a qualified advisor, you will notice that most of your questions will be answered during the presentation. But then do not be afraid to ask your remaining questions. This is for your future so make sure the plan answers your needs.
You already met the 5 advisors and reviewed their proposed plan. At this point, you may create a table or list down the things you need and want from an insurance plan versus the proposals. Now, which among them is the fittest to your goal. While some riders or benefits are a wonderful addition remove them if it doesn’t fit your cause. Just get what you need.
I hope this blog helped you in getting the “right” insurance for you. Cheers!
READ: Sun Fit and Well | Most Comprehensive Health Insurance
*****
References:
