Sun SartUp: Life Insurance with Guaranteed Return of Premium

Endowment Life Insurance, Insurance

Last Updated on by Raymund Camat

return of premium insurance philippinesMany Filipinos still has wrong belief about life insurance. They believe that the only people who could benefit from life insurance plans are their beneficiaries after their death. This is the reason why many don’t like to get insured because they themselves would not benefit from a life insurance plan. They don’t know that there are life insurance plans that could return part of the premiums/payments they paid. One example is the Sun StartUP, a peso-dominated, non-participating endowment insurance product maturing at the end of 10 years.

An endowment policy is a life insurance contract designed to pay a lump sum amount after a specific term (on its ‘maturity’) or on death. Typical maturities are ten, fifteen or twenty years up to a certain age limit. The maturity of Sun StartUp is 10 years which means after 10 years 50% of your total payment in 10 years will be given to you in cash. However, after the maturity date, you are no longer insured as the plan terminates. Sun StartUP is also a non-participating plan which means, it does not earn dividends or share from the profit of Sun Life.

Sample Proposal: Sun StartUP, Juan Dela Cruz, Male, Married, 1 child, 25 years old, non-smoker, 500,000 Face amount

Annual Basic Premium: 10,610 pesos
Accidental Death Benefit Rider: 885 pesos (Optional)
Total Premium: 11,495 pesos

Face Amount: 500,000 pesos
Modes of Payment: Quarter, Semiannul, Annual
Years To Pay: 10 Years
Riders/Additional Benefits: Accidental Death, Free Living Benefit Rider
Assuming I am Juan Dela Cruz, what benefits will I get from Sun StartUP.

I am insured with 500,000 pesos. If I die due to accident, sickness or murder, my beneficiaries will get 500,000 pesos lump sum from Sun Life.  This would  be of great help to my family who depends on my income. It can pay debt, pay estate tax if I have properties, help my wife start a business, send my child to school, put food in the table,  pay funeral expenses, etc. It may not be a big amount but I am sure it will help my love ones a lot. I feel happy that even at my death, I can still help my family move on with their lives.

When I die due to accident, besides the 500,000 pesos lump sum amount that my beneficiaries receive, they will also get additional 500,000 pesos lump sum amount from the accidental death rider. The total amount my family receives when I die due to accident is 1 Million pesos.

What is the free Living Benefit Rider? This rider will pay  me in advance 60% of 500,000 (300,000 pesos)  if I am diagnosed to be terminally ill with life expectancy of only 12 months or less. Of course medical certificates will be needed to claim this benefit. The other 40% will be given after my death.

Return of Premium

The return of premium is only applicable when I outlive the plan. Meaning, I need to be alive after 10 years (maturity date) to get the return of premium. If I die just before the maturity date, there will be no return of premium and my beneficiaries will get the 500,000 pesos face amount or 1 Million pesos if death is due to accident.

My total payment for the basic premium in 10 years is 106,100 pesos (10,610 x 10). This plan will return 50% of the total basic premium paid which is equivalent to 53,050 pesos. After this money is given to me, the plan will be terminated. If I want to have this plan again, I just need to apply again.

If I doubled the face amount I got, say 1 Million pesos, my annual basic premium would be 21,220 pesos for a total of 212,200 pesos payment in 10 years. The return in premium would be 106,100 pesos.

If you like this plan, ask a proposal:

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Raymund F. Camat, CIS, REB, CWP®, CEPP® is a SEC-Certified Investment Solicitor (CIS), Certified Wealth Planner and Certified Estate Planner, Phils. He is also a licensed insurance and mutual fund advisor for Sun Life Financial. He wants to educate the Filipino public on the importance of financial planning, investment planning, wealth planning and estate planning. He offers Personal and Family Wealth Planning to Filipinos from different generations. He has a bachelor's degree from the University of the Philippines. You can reach him at 09179698062 (Globe/TM/ABS-CBN/Viber), 09392787408 (Smart/TalkNText/Sun Cellular), (02) 508-9025 (Landline) or email him at For OFWs, he also conduct online video consultation through Skype, Viber or FB Video Call. ________________________________________ DISCLAIMER: This website reflects only the views and opinions of Raymund F. Camat and is not part of any official communication tools of any life insurance and investment company. The views and opinions on this website do not necessarily reflect those of the company, the management, the advisors/agents and the employees of any life insurance or investment company.
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