According to a national survey, only 2 out of 10 Filipino households are well prepared financially if one family member suffer from grave illness or require expensive medical treatment. Seventy eight percent of national households are “somewhat” prepared or not totally prepared at all if one of family members get critical illness.
Alarmingly, most Filipinos expect financial support from their spouse, children or relatives if they got seriously ill. Very small percentage of our population has health insurance to fund their medical expenses. Of those with health insurance, majority have PhilHealth and HMO cards which have limited coverage and obviously will not be enough to cover serious illnesses like cancer, stroke, heart attack, organ transplant and among others. Many Filipinos in reality are underinsured for health.
Good News! our insurance company has just launched a life insurance product that focuses on health benefits. It covers up to 100 minor and major critical illness benefits up to age 100. Lump sum amount will be provided if diagnosed of the said critical illnesses. A variant of this product provides daily hospitalization income, post hospitalization benefit and home recovery benefit. Additional lump sum amount will also provided if the insured is diagnosed with specific cancer conditions.
The plan also accumulates cash through your lifetime which you can use for your expenses. There are also non guaranteed cash benefits such as dividends and special paid-up bonus from the company. A variant of the plan also provides annual endowment/cash benefit starting age 65 up to age 72.
The good thing about this plan is that the children can be insured. If your child is at least 30 days old, you can let him/her apply for this plan with you the parent as the policy owner/payer.
This endowment plan can be paid in a limited period of 10 years, 15 years or 20 years. Premiums can be paid in partner banks, online banking, automatic bank deduction, credit card payments and other partner institutions. There is monthly, quarterly, semiannual and annual mode of payment depending on the age of the insured and other factors.
There are three variants of the product with different benefits. One plan that I recommend most to my clients is the one that provide endowment benefits starting at age 65. I usually recommend this product together with our best selling VUL plan.
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