13 Different Types of Insurance Policies in the Philippines (2022)

A lot of people are scared after hearing the word insurance; they get scared of the money they get to use or that they do not need it. Insurance as per the Merriam-Webster dictionary is a “means of guaranteeing protection or safety.” Protection of your property, life, health, money, and many more.

13 Different Types of Insurance Policies in the Philippines (1)

Insurance is great for what-if situations we do not like to happen like “What if I get sick?,” “What if my luggage gets stolen?,” “What if my car gets broken?”, “What if I die early.” Or for preparing like when we get old or when the kids are going to school.

A lot may think they won’t need it as it is less likely to happen but we don’t really know what the future entails for us. So it is better safe than sorry. Insurance is an investment, not an expense. When bad things or accidents happen, the cost of insurance is sometimes less than 10% of the expense you may incur if you don’t have one.

13 Different Types of Insurance Policies in the Philippines (2)

We will be discussing the types of insurance policies in the Philippines and you can think which one would be most suitable to get’ if not all.

Table of Contents

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1. Life Insurance

In case the principal has died, a lumpsum amount will be given to the principal’s family.

2. Term Life insurance

You will get benefit in case the policyholder dies, if s/he doesn’t die in the period of coverage, you may have nothing back. The terms depends on you – what age you will purchase or for how many years. Moreover, after the death of the principal will also be investigated malay mo if parang drama at pinatay lang yung principal dahil malapit ng matapos ang insurance at para makakuha ng pera.

3. Whole Life Insurance

The insurance is good for the entire lifetime of the policyholder, however premiums should be paid, sometimes until the policyholder dies. When the policyholder dies, the death benefit will be given to the beneficiaries.

So for example, may insurance kinuha noon 30 years old si Person A if term life insurance kukunin niya for 30 years and namatay siya noong 65 years old, walang makukuhang death benefit. Pero if whole life insurance meron, kasi pang forever until mamatay.

4. Universal Life Insurance

In universal life insurance, not only will the policyholder have death benefits but also you can have savings. To make it simple, let’s say you need to pay 20,000 a year – a portion will be on your premium let’s say 15000 and the rest are invested; you will be paying for 30 years and until your death, the savings plus interest will cover you. So you won’t have to pay anymore like the whole life insurance but still get benefited.

5. Variable Life Insurance

Variable life insurance is a bit similar to universal, however, you could control where to invest. While the interest in Universal is stagnant, in the variable you could go higher but it’s a bit risky since you may get losses too.

Having life insurance is really good especially for breadwinners. Let’s say Person A pays 5,000 monthly for 30 years = Php 1,800,000 all in all. In case the policyholder dies, your beneficiary will have more than Php 1,800,000 that can cover Person A’s funeral expenses, house expenses, and children’s education even if the breadwinner isn’t there anymore.

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Check out our article on Life Insurance Companies in the Philippines.

6. Health Insurance

Most people have PhilHealth, insurance under the Philippine government. However, it is sometimes not enough especially if you are many in the family or if you have a weak immune system.

If you are working, most employers would give you health insurance which they fully or partially pay. This is in case of emergencies like getting sick or injured at work, then you can get to spend money. Also, some include free medical check-up (laboratories, x-rays) to see whether you are still physically fit or if you have conditions that may affect you in the long run or is contagious (e.g. TB.) You can also have free tooth extractions and cleaning.

Health insurance can also let you cover your immediate family at an additional price so that you can also pay less on their check-ups or incase they get hospitalized.

For example, Person B has health insurance of Php 5,000 a year. He needs to get his tooth extracted and the regular cost is Php 1,000 but free with medical insurance. He gets hospitalized for 10 days and the room fee is Php 500.00 a day but free according to his policy. So the expenses without insurance are Php 6,000 but since he paid Php 5,000 he saved Php 1,000.00 and much more if we include doctor’s fees and laboratories. So health insurance is definitely great insurance to have.

7. Educational Insurance

Tuition fees are increasing and we are not sure if we could afford to let our kids go to prestigious schools or universities, so we might as well invest in their future. Educational Insurance lets you save money in advance and you can cash-outs for tuition payments or school allowance and education benefits.

You could save for 10 years for your child’s brighter future. If you pay Php 20,000 monthly for 10 years then you could have Php 2.4M, not including of interests, so if tuition fee is Php 100,000 in the future, you could definitely be ready – it could include allowance, housing, uniforms and for projects. It’s a great investment for your kid’s future.

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10. Vehicle and Accident Insurance

If you have a car or a motorcycle, then you need to have this insurance. In case your car gets damaged or you or your family members riding the vehicle gets in an accident. The cost will depend on your car’s cost and how many persons are in the vehicle. There might be deductibles too.

13 Different Types of Insurance Policies in the Philippines (3)For example, you pay Php 10,000 for your car insurance and Driver X, a newbie driver, hit it to a tree resulting in damaged headlights and bumper. Your policy states you have a deductible of Php 2,000 and the repairs will cost you Php 25,000.00. You need to pay only Php 2,000 to repair shop and the rest is by the insurance company. So you have saved a total amount of Php 13,000.00. O diba, sulit. Pero wag mong ibangga para makakuha ka lang ng insurance, malulugi ka if you do it on purpose, wala kang sasakyan gagamitin nyan. In case of emergencies lang to.

In case of accidents, you can get back the maximum amount insured vs your expenses. For example a maximum of 100,000 per person then Person D was riding the car when an accident causing him a loss and hospital bills of Php 50,000, then you can claim it from the brokers.

11. Compulsory Third Party Liability

If you have a vehicle, a CTPL is a compulsory requirement when renewing the license of the vehicle. For renewal, you need Emission tests, MVIS, CTPL, and payment. So if walang insurance, wala kang bagong OR. Lagot ka pag-may PNP check.

A Third Party Liability basically helps you in case you hit someone by accident or a passenger who is a friend or co-worker of the driver got injured, then you can get claims for their expenses.

As an example: Person G has paid Php 500.00 for his CTPL, then he accidentally hit Pedestrian L. Pedestrian L had Php 20,000 hospital bills, bought Php 5,000 worth of medicines and wasn’t able to work for 5 days losing Php 2,500. He can ask reimbursement from Person G. Person G can submit the documents to the broker so that he could be reimbursed of what he has given to Pedestrian L. With CTPL Person G saved Php 27,000 (27,500 total expense – 500 CTPL.)

12. Property Insurance

The most common insurance for homeowners is property insurance in case of accidents like fire, theft, earthquake, floods and many more. If your area is prone to fire or flood, then it is better if you own this so that if such happens, you don’t start from scratch. It covers the house and what is inside. You’ll have money to repair your house and buy new equipment.

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13. Travel Insurance

Off to travel? Ride a plane or a boat or go to another country? Well, you need to have travel insurance that covers you in case you will lose your baggage, you’ll have delays or you get into an accident. I recently encountered a car accident in Pakistan, and I was glad that I have Safetywing Insurance by my side that covered all my medical expenses.

It’s better safe than sorry, so you need to have an insurance ready in case something you do not like or did not expect happens. It is better to slowly invest money on insurance than do it one big time in an emergency, minsan nangungutang nga tayo pambayad lang. So don’t be afraid to get insurance in the Philippines.

What are the ones you are paying for? Which insurance do you think is best for you? We like to hear your thoughts!

13 Different Types of Insurance Policies in the Philippines (4)

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FAQs

What are the 7 types of life insurance? ›

Common types of life insurance include:
  • Term life insurance.
  • Whole life insurance.
  • Universal life insurance.
  • Variable life insurance.
  • Indexed universal life insurance.
  • Simplified issue life insurance.
  • Guaranteed issue life insurance.
  • Group life insurance.

How many types of insurance policy are available? ›

General insurance covers home, your travel, vehicle, and health (non-life assets) from fire, floods, accidents, man-made disasters, and theft. Different types of general insurance include motor insurance, health insurance, travel insurance, and home insurance.

What are the 5 main types of insurance? ›

Home or property insurance, life insurance, disability insurance, health insurance, and automobile insurance are five types that everyone should have.

What are the three types of insurance in the Philippines? ›

Common types of insurance in the Philippines include life insurance, health or medical insurance, and investment-linked insurance.
  • Life Insurance.
  • Health Insurance.
  • Savings and Investment-Linked Insurance.

What are the main types of insurance? ›

Broadly, there are 8 types of insurance, namely:
  • Life Insurance.
  • Motor insurance.
  • Health insurance.
  • Travel insurance.
  • Property insurance.
  • Mobile insurance.
  • Cycle insurance.
  • Bite-size insurance.
8 Aug 2022

What are the different types of life insurance class 11? ›

Types of Life Insurance Policies
  • Term insurance plan. As the name says Term insurance plan are those plan that is purchased for a fixed period of time, say 10, 20 or 30 years. ...
  • Endowment policy. ...
  • Unit Linked Insurance Plan. ...
  • Money Back Policy. ...
  • Whole Life Policy. ...
  • Annuity/Pension Plan.

What are the main policies of life insurance? ›

What are the main types of life insurance policies in India?
  • Term Insurance.
  • Term insurance with return of premium.
  • Unit Linked Insurance Plans.
  • Endowment plans.
  • Moneyback policy.
  • Whole life insurance.
  • Group life insurance.
  • Child Insurance Plans.

What are the main policies of life insurance explain? ›

Term life insurance is a type of life insurance that provides a death benefit to the beneficiary only if the insured dies during a specified period. If the policyholder survives until the end of the period, or term, the insurance coverage ceases without value and a payout or death claim cannot be made.

What are the 3 main types of insurance? ›

Insurance in India can be broadly divided into three categories:
  • Life insurance. As the name suggests, life insurance is insurance on your life. ...
  • Health insurance. Health insurance is bought to cover medical costs for expensive treatments. ...
  • Car insurance. ...
  • Education Insurance. ...
  • Home insurance.
17 Feb 2022

What are the 6 major types of insurance? ›

Six Types of Insurance Everyone Needs
  • Property & Casualty (P&C) insurance.
  • Health insurance.
  • Long-term disability insurance.
  • Life insurance.
  • Long-term care insurance.
  • Identity theft insurance.
  • The bottom line about types of insurance you need.
  • ---
18 May 2022

What are the 6 types of insurance? ›

Six common car insurance coverage options are: auto liability coverage, uninsured and underinsured motorist coverage, comprehensive coverage, collision coverage, medical payments coverage and personal injury protection. Depending on where you live, some of these coverages are mandatory and some are optional.

What is insurance policy class 11? ›

Insurance is a contract under which the insurer undertakes the responsibility to indemnify the insured against any damage for which it has taken insurance. The insured needs to pay a certain amount of premium to the insurer to avail insurance. Insurance is a contract of indemnity and also is based on utmost faith.

Is there insurance in the Philippines? ›

Overview of the Filipino National Health Insurance System

All Filipino citizens are entitled to free healthcare under the Philippine Health Insurance Corporation, known as “PhilHealth.” This health insurance program is government organized. It is funded in part by government subsidies at the local and national level.

How many insurance companies are there in the Philippines? ›

In 2020, there were 94 licensed insurance companies in the Philippines.

What is insurance and explain its types? ›

Insurance policies can cover up medical expenses, vehicle damage, loss in business or accidents while traveling, etc. Life Insurance and General Insurance are the two major types of insurance coverage. General Insurance can further be classified into sub-categories that clubs in various types of policies.

What are the 2 main type of insurance? ›

There are two broad types of insurance: Life Insurance. General Insurance.

What are the different types of life insurance claims? ›

Life insurance claims can be divided into three categories: death claims, maturity claims and rider claims. The settlement procedure of each of these insurance services is different: Death Claims: The nominee or beneficiary can avail insurance benefits in case of untimely demise of the insured person.

What are the different types of life insurance and how do they differ? ›

The two types of life insurance are term and permanent life insurance policies. A term life insurance policy is temporary and only covers you for a set period of time, usually between five and 40 years. A permanent life insurance policy covers you for your entire life and builds cash value over time.

How many life insurance policies can you have? ›

There is no limit on the number of life insurance policies you can have, but insurance companies may look at your total coverage amount. As a rule of thumb, your coverage typically can't exceed 15 to 20 times your annual income.

How many types of permanent life insurance are there? ›

What Are the Four Types of Permanent Life Insurance? The four types of permanent life insurance policies are universal life, whole life, variable universal life, and variable life.

What is basic policy? ›

Basic Policy means the contract of policy, including the schedule of fees and charges, as may be amended by endorsement from time to time.

Which type of policy pays benefits to a policyholder? ›

Which type of policy pays benefits to a policyholder covered under a Hospital Expense policy? When benefits are paid to a policyowner covered under a Hospital Expense policy, the policy is known as reimbursement.

Which of the following types of insurance policies is most commonly used in credit life? ›

Which of the following types of insurance policies is most commonly used in credit life insurance? Credit insurance is a special type of coverage written to insure the life of the debtor and pay off the balance of a loan in the event of the death of the debtor. It is usually written as decreasing term insurance.

What is an example of insurance? ›

An individual or company may get an insurance policy (making them the policyholder) that protects another person or entity (who is the insured). For example, when a company buys life insurance for an employee, the employee is the insured, and the company is the policyholder.

What is Third Party liability Philippines? ›

In the Philippines, the most basic type of motor vehicle insurance is the Compulsory Third Party Liability Insurance (CTPLI). CTPLI pays for expenses incurred as a result of the vehicle owner's causing bodily injury or death to any third party in an accident arising from the use of the insured motor vehicle.

What are the 4 basic coverages of the standard auto policy? ›

While different states mandate different types of insurance and there are several additional options (such as gap insurance) available, most basic auto policies consist of: bodily injury liability, personal injury protection, property damage liability, collision, comprehensive and uninsured/underinsured motorist.

How much is an umbrella policy? ›

The price of obtaining $1 million of personal liability coverage from an umbrella policy can be relatively low, generally costing between $150 and $300 per year. And for every additional $1 million of financial protection, the incremental premium cost tends to gradually diminish.

What is PPO and HMO? ›

An HMO is a Health Maintenance Organization, while PPO stands for Preferred Provider Organization. The differences, besides acronyms, are distinct. But the major differences between the two plans is the cost, size of the plan network, your ability to see specialists, and coverage for out-of-network services.

What type of insurance does a business need? ›

The 11 most common types of insurance that small businesses need are:
  • General Liability Insurance. ...
  • Professional Liability Insurance. ...
  • Business Income Coverage. ...
  • Commercial Property Insurance. ...
  • Workers' Compensation Insurance. ...
  • Commercial Auto Insurance. ...
  • Data Breach Insurance. ...
  • Commercial Umbrella Insurance.

What are the six categories typically covered by homeowners insurance? ›

Generally, a homeowners insurance policy includes at least six different coverage parts. The names of the parts may vary by insurance company, but they typically are referred to as Dwelling, Other Structures, Personal Property, Loss of Use, Personal Liability and Medical Payments coverages.

What is corporate insurance policy? ›

Corporate insurance is a type of insurance cover usually used by large organisations to protect their business against operational risks such as theft, financial losses, employees' health and accidents. It is comprehensive business insurance that benefits the past or present employees as well as the company itself.

What are the 10 principles of insurance? ›

Principles of Insurance
  • Utmost Good Faith.
  • Proximate Cause.
  • Insurable Interest.
  • Indemnity.
  • Subrogation.
  • Contribution.
  • Loss Minimization.

What is life insurance mean? ›

Life Insurance can be defined as a contract between an insurance policy holder and an insurance company, where the insurer promises to pay a sum of money in exchange for a premium, upon the death of an insured person or after a set period.

What are the 5 principles of marine insurance? ›

The fundamental principles of Marine Insurance are drawn from the Marine Insurance Act, 1963* As in all contracts of insurance on property, the contract of Marine Insurance is based on the fundamental principles of Indemnity, Insurable Interest, Utmost Good Faith, Proximate Cause, Subrogation and Contribution.

What are the health insurance in the Philippines? ›

Here are some of the largest insurance companies you may want to consider:
  • PhilHealth.
  • Medicard.
  • Philippine Prudential.
  • SunLife.
  • Maxicare.
  • Caritas Health Shield.
28 Sept 2017

Who is the number 1 insurance company in the Philippines? ›

Now on its 126th year, Sun Life ranks as the Number 1 life insurance company in the Philippines, with its lead in total premiums in 2020.

Is PhilHealth a life insurance? ›

PhilHealth is a government-owned and controlled corporation and is the country's national health insurance provider. It gives all of our private employees health coverage thanks to the contributions we make that is acquired by automatically deducting a certain percentage from our salaries.

Is there private health insurance in Philippines? ›

While the public healthcare system in the Philippines is accessible and free to use for all citizens via the country's PhilHealth scheme, the private sector is responsible for providing most of the healthcare in the country, with a significant number of citizens having their own private health cover.

How much life insurance do I need Philippines? ›

Usually, you need to have between 7 and 10 times your annual salary before you get covered. That will probably increase if you have kids, debts, or a business. For example, if you're making Php 360,000 a year, you should consider buying life insurance of around Php 2,520,000 to Php 3,600,000.

What is an example of private insurance? ›

Private health insurance is primarily funded through benefits plans provided by employers. Examples include: Blue Cross and Blue Shield health insurance companies. Non-Blue commercial health insurance companies.

What is Philippine insurance industry? ›

The insurance industry in the Philippines is varied and comprehensive, with plans ranging from life to non-life, pre-need, and micro and macro insurances. The entire industry is regulated by the Insurance Commission which oversees and reports the financial activities of the different insurance companies.

Is SSS an insurance? ›

SSS is a social insurance program that aims to provide protection to its members and beneficiaries, while GSIS serves as the counterpart social insurance program for those who work in government. SSS members can avail of maternity, sickness, disability, retirement, funeral and death benefits.

How big is the insurance industry in the Philippines? ›

The total assets of the insurance industry in the Philippines amounted to over two trillion Philippine pesos as of year end 2021. The total assets of the insurance industry showed a year-on-year growth over the past nine years.

What type of life insurance do most people get? ›

The most common type of life insurance is term life insurance. Term life insurance is the simplest and most affordable type of life insurance. It provides coverage for a specific period of time, or “term.” If you die during the policy term, your beneficiaries will receive a death benefit.

What are the 3 main types of insurance? ›

Insurance in India can be broadly divided into three categories:
  • Life insurance. As the name suggests, life insurance is insurance on your life. ...
  • Health insurance. Health insurance is bought to cover medical costs for expensive treatments. ...
  • Car insurance. ...
  • Education Insurance. ...
  • Home insurance.
17 Feb 2022

What type of life insurance does not expire? ›

Permanent life insurance refers to coverage that never expires, unlike term life insurance. Most permanent life insurance combines a death benefit with a savings component. Whole life and universal life insurance are two primary types of permanent life insurance.

What is basic life insurance? ›

Basic life insurance is a type of group life insurance that is provided to employees at no or very low out-of-pocket cost. Insured individuals can expect that their beneficiaries will receive a limited and predetermined death benefit if the policyholder passes away during the coverage term.

How many life insurance policies can you have? ›

There is no limit on the number of life insurance policies you can have, but insurance companies may look at your total coverage amount. As a rule of thumb, your coverage typically can't exceed 15 to 20 times your annual income.

What is the difference between life cover and life insurance? ›

Life insurance pays out a tax-free sum to whoever you choose if you die during the term of the policy. The most common types of life insurance are: level, increasing and decreasing cover. Life insurance covers you for a specific term, or amount of time.

What are the three types of permanent life insurance? ›

The four main types of permanent life insurance are whole life, universal life, variable life, and variable universal life.

What is an ordinary life insurance policy? ›

Ordinary Life — a type of whole life insurance contract arranged so that the premiums are payable as long as the insured lives. The contract is not paid up and does not mature until the named insured reaches age 100 or dies, whichever event comes first.

What is a permanent insurance policy? ›

Permanent life insurance is a type of life insurance policy that doesn't expire as long as you continue to pay the premiums. It's designed to last for your entire life, so you have a guaranteed way to leave behind financial support for those you choose.

What is an example of insurance? ›

An individual or company may get an insurance policy (making them the policyholder) that protects another person or entity (who is the insured). For example, when a company buys life insurance for an employee, the employee is the insured, and the company is the policyholder.

At what age does a life insurance policy expire? ›

As long as premiums are paid on time, permanent life insurance policies do not expire. Their coverage lasts for the insured's entire life. Some permanent life insurance policies can end between ages 100 to 121.

Can you cash out a life insurance policy before death? ›

Can you cash out a life insurance policy before death? If you have a permanent life insurance policy, then yes, you can take cash out before your death.

At what age does term life insurance end? ›

Most term life insurance policies last 10, 20, or 30 years, but some companies offer additional five- or 10-year increments up to 35 or 40 years.

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