LUCAS, Jhacel Winn P.
FME 111: INSURANCE AND RISK MANAGEMENT
Activity 1: Life Insurance for the Young Married
Jeff and Ann are both 28 years old. They have been married for three years, and they have a son who is almost two. They
expect their second child in a few months. Jeff is a teller in a local bank. He has just received a $60-a-week raise. His
income is $960 a week, which, after taxes, leaves him with $3,200 a month. His company provides $50,000 of life
insurance, a medical/hospital/surgical plan, and a major medical plan. All of these group plans protect him as long as he
stays with the bank. When Jeff received his raise, he decided that part of it should be used to add to his family’s
protection. Jeff and Ann talked to their insurance agent, who reviewed the insurance Jeff obtained through his job. Under
Social Security, they also had some basic protection against the loss of Jeff’s income if he became totally disabled or if he
died before the children were 18. But most of this protection was only basic, a kind of floor for Jeff and Ann to build on.
For example, monthly Social Security payments to Ann would be approximately $1,550 if Jeff died leaving two children
under age 18. Yet the family’s total expenses would soon be higher after the birth of the second baby. Although the
family’s expenses would be lowered if Jeff died, they would be at least $500 a month more than Social Security would
provide.
Questions
1. What type of policy would you suggest for Jeff and Ann? Why?
The type of policy I would suggest for Jeff and Ann is term life insurance.
It is because the premium increases with each renewal. Initially a lower premium can be purchased for a
larger amount of coverage. Also it may be renewable or convertible to a whole life policy.
2. In your opinion do Jeff and Ann need additional insurance? Why or why not?
They each need additional insurance.
From your example, I have assumed that Ann does not work outside the home. Jeff needs to provide enough
life insurance to provide for Ann and the children in the event of his death. If you multiply 18 years x 12
months/year x $1648, the minimum she will need to replace his income is $355,968.00. That figure does not
adjust for inflation, increase in income , children’s education, etc. In my opinion, he needs to purchase at
least 1 million in term life insurance in order to provide for his family in case of his death. At his young age,
the premium is very low.
Ann should also purchase an equal amount of term life insurance in case of her death. Were she to die while
the children are young, Jeff will need income to provide for daycare, he mIght need household help, etc.
Activity 2: An Argument About the Value of Insurance
You have been talking to some friends about insurance. One young married couple in the group believes that insurance is
really a waste of money in most cases. They argue, “The odds of most bad events occurring are so low that you need not
worry.” Furthermore, they say, “Buying insurance is like pouring money down a hole; you rarely have anything to show
for it in the end.” Based on what you have learned from this chapter,
how might you argue against this couple’s point of view?
Insurance is mechanism for transferring and reduce
the risk through which a large number of individuals share
the financial losses suffered by group of whole. It is easy to
make an argument against the couple in the absence of a bad
event. If a car accident, fire, or theft were to occur, their
feelings on this topic will likely change. Though it may appear to be a waste of money because there is an
uncertainty about the outcome of a situation, the purpose of it is to cover serious losses should a disaster occur,
especially if there are solid reasons as to the frequency and severity of an ordeal.
Activity 3: The Hernandezes Face the Possibility of Long-Term Care
Victor Hernandez recently learned that his uncle has Alzheimer’s disease. While discussing this tragedy with Maria, he
realized that two of his grandparents probably had the disease, although no formal diagnosis was ever made. As a result,
Victor and Maria have become interested in how they might protect themselves from the financial effects of long-term
health care. (a) What factors should the Hernandezes consider as they shop for long-term care protection?
They should evaluate which activities for daily living (ADLs) are covered in their policy to make
sure relevant criteria are considered eligible. They should also determine the level of care covered, whether it
is skilled nursing care, intermediate care, or custodial care.
They should evaluate factors such as benefit amount to ensure an adequate dollar amount is paid out, benefit
period to cover the proper amount of time, waiting period—to possibly reduce premium, and inflation
protection to cover the effects of inflation lowering the benefit amount.
Activity 4: Research
Read as much as possible on insurance corporations in the Philippines and compare the products that they are selling.
Based on your readings, choose one best insurance company and come up with a written report on why you have chosen
such company. That is, present the products that they are offering with its descriptions and then come up with an
enumeration of why you think this company is the best one. Your enumerations should include explanations.
Format:
a. introduction of the company
b. products offered
c. reasons why you have chosen this corporation
Sun Life of Canada (Philippines)
Founded in 1895, Sun Life Of Canada (Philippines), Inc. is a subsidiary under Sun Life of Canada (Netherlands) and
offers services a wide range of financial products: Insurance, wealth, and asset management.
These include financial services for education, estate preservation, health protection, income continuation, retirement,
group life, and other insurance products.
It was in 1895, three years before the founding of the Republic of the Philippines, when Sun Life first set foot in the
country with the mission of giving Filipinos the opportunity to enjoy the humanitarian benefits of insurance. For 124
years, Sun Life has endured World War II, martial law and many political crises in the Philippines. Today, Sun Life is a
vibrant and strong life insurance company that will surely stand for another 124 years.
Sun Life was founded in 1865 in a the beautiful country of Canada. That makes Sun Life 154 years old. That is
astonishing because only few companies can last more than 150 years. Today, Sun Life is one of the largest life insurance
companies in Canada and worldwide.
If the longevity of a life insurance company is a big factor to you, Sun Life’s 154 years of existence will definitely matter
to you. You want your life insurance company to outlive you so that you and your family will enjoy all the benefits
promised by your life insurance contract.
PRODUCTS OFFERED
Sun SmartStarter 8 Participating whole life insurance plan with guaranteed
endowment benefits. Provides 3% of the face amount after
3 years, and every 3 years afterward with a payment
period of 8 years.
Sun Milady and Sun Milady Plus Insurance packages specifically designed for women. Sun
Milady provides life insurance and lump sum payment for
procedures and diagnosis of illnesses specifically for
women. On top of these, Sun Milady Plus provides
benefits for complications following pregnancy.
Sun Protector and Sun Protector Plus Insurance packages with comprehensive financial
protection for emergency healthcare needs. Sun Protector
provides benefits for total and permanent disability,
hospitalization, diagnosis of critical illness, and accidental
death. On top of these, Sun Protector Plus provides
endowment benefits after 4 years, and every 2 years
afterward for life
Sun SmartStarter and Sun SmartStarter Plus Participating whole life insurance plans. Sun SmartStarter
has a cash value, earns dividends, and special payment
rates for non-smokers. Sun SmartStarter Plus comes with
an endowment benefit of 6% of the coverage amount after
4 years, and every 2 years afterward for life.
Sun Secure Participating whole life insurance plan with limited
payment period of 10 and 15 years. It has cash value and
earns dividends.
Sun Intensi5 Participating whole life insurance plan with limited
payment period of 5 years.
Sun PesoProvider Participating whole life insurance plan with protection
equal to 200% of the coverage amount, guaranteed
endowment benefit and limited payment period of 5 and
10 years.
Sun Safe20 It’s an endowment insurance plan that provides 100%
payment of the coverage amount in case of death during
the 20-year coverage or if the insured lives at the end of
the 20th year.
Sun Dollar Power Life and Sun Power Plus Dollar denominated participating whole life insurance
plans, the Sun Dollar Power Life also comes with cash
value and earns dividends. On top of these, Sun Dollar
Power Plus provides an endowment benefit of 6% of the
coverage amount after 4 years, and every 2 years
afterward.
Sun Forex Term An insurance plan in dollar currency with yearly and 5-
year renewable and convertible term.
Sun Dollar Provider Dollar-denominated participating whole life insurance
plan with protection equal to 200% of face amount,
guaranteed endowment benefits, and limited payment
period of 5 and 10 years.
Sun SmartSaver Peso Single pay peso-denominated endowment plan. Pays 10%
of face amount after the 4th, 6th, and 8th year, then pays
70% of the face amount when it matures after 10 years.
Sun Healthier Lifer Simplified issue offer that provides cash payouts equal to
a percentage of the coverage amount if the insured is
diagnosed with any of the covered 8 minor critical
illnesses and 5 major critical illnesses.
Sun FlexiLink Assist An investment-linked life insurance plan that provides you
with a complete suite of life, accident, disability and
health protection benefits, with potential for wealth
accumulation. It gives you cash benefits which may lessen
the burden of medical expenses, protection benefits that
helps you worry less about life’s uncertainties, and the
opportunity to build funds overtime for your family’s
future needs.
Sun Pezo Maximizer Sun Peso Maximizer (Limited Offer Only) is an
investment-linked life insurance plan that provides
protection for 7 years and enables your money to benefit
from global investment opportunities while protecting
your capital.
Reasons why you have chosen this
corporation
Sun Life has 70+ Client Centers in the Philippines
Sun Life has distributed client centers in the country where financial advisors and clients could transact. Clients don’t
need to travel far to reach a Sun Life customer center. Paying premiums, withdrawing funds, filing claims and other basic
services are easily availed by policy holders if they are near a client center. Clients will save time and money. Sun Life
has established client centers in major cities of the country. More client centers are expected to be established in the years
to come as Sun Life has set an ambitious goal of achieving 5 million clients by 2020
Sun Life Has Over 13,000+ Financial Advisors-Finding a licensed financial advisor these days is relatively easy with
over 13,000 of them scattered throughout the country. They are active in social media networks like Facebook, Instagram,
Linkedin and blogs. Your friends, coworkers and family members may refer you to their Sun Life financial advisors as
well. Since we have thousands of advisors, you have the freedom to choose your preferred advisor. You may qualify your
advisor based on tenure, awards received and other achievements.
Most of financial advisors now are millennials catering to the needs of young professionals who are actively looking for
life insurance and investment products. If you are a millenial who is more comfortable to talk to a millenial advisor, you
may do so by contacting one or two of our millenial advisors today.
Fastest Turnaround Time on Claims-Sun Life continues to have one of the fastest turnaround times in the life- insurance
industry in terms of claims payment. Just recently, the company increased its threshold amount for speedy death claims
processing from P3 million to P5 million. This means that death benefit checks are ready for release within three hours
from receipt of claim request at the Bonifacio Global City head office for those with complete and satisfactory claim
requirements and following set criteria for speedy death claims.
Sun Life Leverages the Use of Technology-
Sun Life understands the needs of its clients. One of these needs is fast and easy access to their life insurance and
investment accounts. With the rise of smartphones, the company launched the Sun Life mobile app where clients can see
their policy information, fund values, mutual fund accounts, etc 24/7. They can also do self-service financial needs
analysis with the Money for Life planner, get immediate answers to common inquiries and FAQs, locate Sun Life offices
in the country and access company information. Access through web browsers is still available 24/7.
Sun Life Offer Mutual Funds- Sun Life does not only offer life insurance products but also award-winning mutual funds.
Mutual funds are a great way to maximize your earning potential. Sun Life offer mutual fund products through its asset
management arm Sun Life Asset Management Company Inc (SLAMCI) which is currently the largest non-bank affiliated
asset management company in the country.
Sun Life Involves in Charitable Acts-
Sun Life is involved in corporate social responsibility with Sun Life Foundation. Yearly, I share my blessings by helping
the foundation financially to pursue its programs to help the marginalised sector of society. I could not forget the time
when Sun Life donated hundreds or boats to fishermen affected by a very powerful typhoon. We were even given the
chance to give names to the yellow boats. I donated a small amount for this project and I was very happy to share the
blessings God has given me.
Sun Life Offers Affordable Life Insurance Plans- First, Sun Life’s accidental insurance can be availed for as low as
100 pesos. You can even buy it online 24/7. Easy and fast. You can purchase it through Lazada here.
Sun Life generated the most revenue from the total premium they charge on their policies (for both traditional and
variable plans) in 2019 (at P39.5B).
REFERENCE:
https://www.sunlife.com.ph/PH/Insurance?vgnLocale=en_CA
https://grit.ph/life-insurance/
https://www.moneytalkph.com/insurance/top-reasons-why-sun-life-is-the-best-life-insurance-company-in-the-philippines/
