Financial
7 Steps to Simplify the Life Insurance Application Process in the Philippines
Introduction
Many find the process of applying for life insurance in the Philippines intimating—the truth is, it actually doesn’t have to be. To make it easier for you, here are seven steps to follow and things to do to secure the exact coverage you need with as minimal hassle as possible.
Assess Your Insurance Needs
Explanation: The application process will go much smoother if you know how much coverage you really need. You must also take into consideration the amount of money you currently receive, debts, cost of living, and financial goals, such as your children’s education or your retirement.
Steps:
- Get the total of your financial obligations.
- Subtract the savings and existing assets.
- The difference is the equivalent amount of coverage needed.
Tip: Get rough estimates of required coverage online through different life insurance calculators.
Research and Compare Insurance Policies
Explanation: Each insurance company offers multiple life insurance products, including term life, whole life, and universal. Research and compare the benefits, including coverage, premiums, and policy terms.
Steps:
- Get the total of your financial obligations.
- Use online comparison tools.
- Read reviews and ask friends and family for recommendations.
Tip: Identify which features are the most vital to you, such as premium, policy duration, and riders.
Select a Trustworthy Insurance Company
Explanation: Make sure the insurance company you choose has a good reputation and strong financial standing. The Insurance Commission of the Philippines offers ratings and reviews on the various insurance companies in the country.
Steps:
- Consult the Insurance Commission website to get the ratings of different companies.
- Read through customer reviews and the efficiency of claims processing and service.
- Find the financial strength ratings of the company from rating agencies.
Tip: The much better insurance companies with a good track record and a positive reputation.
Talk to a Licensed Insurance Agent
Explanation: An insurance agent with experience can easily guide you on the complexities of life insurance and recommend the policy that best meets your insurance needs.
Steps:
- Schedule a consultation with a licensed agent.
- Share your financial goals and what you want insurance for.
- Ask as many questions as possible about the policies and what they contain.
Tip: Ensure the agent is listed with the Insurance Commission of the Philippines.
Prepare the Necessary Documentation
Explanation: Having the documents at hand can hasten the processing of your application. Documents usually requested are identification, proof of income, and medical records.
Steps:
- Get your government-issued ID (e.g., passport, driver’s license).
- Prepare or get recent pay slips or income tax returns.
- Get medical records or schedule a medical exam if required.
Tip: You should keep copies of all these documents.
Fill Out the Application Form Correctly
Explanation: When filling out your application form, ensure you present accurate data on the form. This allows for the smooth processing of your approval credentials. An inaccurate application process can result in either disapproval or delayed coverage.
Steps:
- Fill out an application form with personal and financial details correctly.
- Be honest about your health and lifestyle history.
- Cross-check your details on the form and send the form.
Tip: Seek help from your insurance agent if you are not sure about a section of the form.
Medical Examination – most insurance policies for life demand this activity.
Explanation: Most life insurance policies will require a medical examination to base facts about your health and determine premium rates.
Steps:
- Schedule the medical exam at your most convenient time.
- Agree to comply with the pre-exam, such as fasting.
- You will be at the exam center to provide accurate health information.
Tip: Lead a healthy life in the weeks preceding the exam to earn yourself optimal results.
Conclusion
Applying for life insurance in the Philippines need not be complicated. By assessing your needs, doing some research on policies and companies, consulting with an agent, preparing the necessary documents, and accurately filling out the application and medical exam form, you can make the process faster and secure the right life insurance coverage to protect your finances and ultimately enjoy peace of mind.
References:
- New York Life Insurance Employee Handbook Example (Article Link)
- Tips Kapag Bibili ng Life Insurance (Video Link)
- HMO vs. Life Insurance (Video Link)
- Usapang Life Insurance: Different Kinds of Life Insurance (Video Link)
- Insurance vs. Investments: Explaining the X-Curve Concept (Video Link)
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A multi-award-winning blogger and advocate for OFWs and investment literacy; recipient of the Mass Media Advocacy Award, Philippine Expat Blog Award, and Most Outstanding Balikbayan Award. Her first book, The Global Filipino Bloggers OFW Edition, was launched at the Philippine Embassy in Kuwait. A certified Registered Financial Planner of the Philippines specializing in the Stock Market. A recognized author of the National Book Development Board of the Philippines. Co-founder of Teachers Specialist Organization in Kuwait (TSOK) and Filipino Bloggers in Kuwait (FBK). An international member of writing and poetry. Published more than 10 books. Read more: About DiaryNiGracia
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