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WHEN
liquidity problems struck the preneed industry in 2005,
49-year-old office personnel Diosdada Marquez was
worried that her insurance provider might not be able to
pay its obligations to her retirement policy that would
mature that year.
“I have
always been planning ahead. When our company offered a
retirement fund for its employees, I didn’t think twice
to subscribe to it. I believe we were given a very good
coverage by our insurance provider,” Marquez said,
without naming the insurance company. “During the time
of our [fund’s] maturity three years ago, that was also
the time that the preneed industry was experiencing
financial trouble. I was so worried then that the
insurance firm would be incapable of giving the
retirement fund due to us. Fortunately, it didn’t
happen.”
Perhaps
she should have stuck with life insurance, instead.
“Preneed
is totally different from life insurance conceptually
and in reality,” Insular Life Assurance Co., Ltd.
chairman of the board and chief executive Vicente Ayllon
stressed. “And basically, insurance companies made
efforts to get that message across, especially at the
height of the preneed fiasco.”
For one,
the insurance industry is highly regulated and closely
monitored by the Insurance Commission. There are
stipulated measures that insurance companies have to
adhere to with respect to ensuring their liquidity and,
more importan, solvency.
“In that
sense, the public can be confident that insurance
companies have the capability and stand ready to meet
their obligations,” Ayllon said.
Trusted
name
AMONG
the many players in the insurance market nowadays,
Insular Life remains among the most preferred provider
by the insuring public. This is because of its 97-year
track record of stability and dependability.
“A
customer who invests in an Insular Life policy is buying
into a product from a Filipino company that is of equal
caliber as one offered by a multinational,” Ayllon
pointed out.
Apart
from its long history, as well as competitive offerings,
the insurance veteran added that a plan holder “can be
assured that the product provides dividend or pricing
advantages.” More importantly, “when a customer invests
in an Insular Life policy, he becomes part owner to the
company because Insular Life is a mutual company. As
part owner, he is ultimately benefited by company
profits either through competitive pricing, higher
dividends or both.”
Insular
Life continues to belong to the top five insurance
companies in the Philippines, accounting for 14 percent
of the sales contributed by these companies. Last year
its total premium sales amounted to P8.7 billion for a
21-percent growth over 2006.
As of
the end of 2007, its asset base reached P57.7 billion,
such that Ayllon stressed that Insular Life has the
capability and stands ready to meet its obligations.
Ideal
investment
Investing one’s hard-earned money—as compared with, say,
merely opening a savings account—has become necessary,
especially during this time of high inflation. And an
insurance policy is an ideal investment tool to
consider.
Apart
from traditional insurance products that hedge against
loss or contingencies, there are also those, like the
variable unit life (VUL), that combine protection and
investment components.
Although
investment-linked products are relatively new, Ayllon
noted that they are catching up in terms of sales.
“In
fact, their growth has been outstanding in the short
time they’ve been in the market,” he said. “That goes to
show the growing sophistication and appreciation of the
market for this type of products.”
Among
its broad range of offerings, Insular Life has
limited-pay products endowment and whole life products,
and variable unit linked products that cater to the
protection, investment and savings needs of the
Filipino. The former give lifetime cash and protection
benefits, while the latter allow policyholders to invest
in equities and bonds even without getting involved in
managing the funds.
For the
future security of employees, the insurance company
provides worksite products covering their retirement,
long-term medical care, health and hospitalization or
disability/accident risks. Premiums for these programs
are paid either by the employer or through
salary-deduction schemes.
In case
of untimely death or permanent disability, Insular Life
offers I-Assure Max with disability riders, which offers
lifetime coverage at five- or 10-year payment terms.
More than the lifetime coverage provided by i-Assure
Max, the policy owner also gets cash allowances
equivalent to 8 percent of the plan’s coverage, starting
at the end of the fourth policy year and every two years
thereafter, for life.
The
Group Term and Group Health products, on the other hand,
provide hospitalization, disability and accident-related
coverage. These plans are recommended to employers so
they need not worry about the cost of accidents,
disability or death of their workers.
Since
members of special groups or particular organizations
also have needs for life, health and retirement
benefits, Insular Life has designed the Group Insurance
plans. These include Comprehensive Group Plan, Group
Term Life Insurance Plan, Comprehensive Group Accident
Insurance Plan, Group Hospitalization Insurance Plan,
Group Term Life Insurance Dollar Plan, Creditors’ Group
Life Insurance Plan, Prototype Plans and Salary Savings
Insurance.
As proof
of its commitment of being a market trailblazer, four to
six new products are now in the pipeline and set to be
launched this year.
“We hope
to be the first to market these products to beat our
multinational competitors,” Ayllon said, without further
elaborating on their details.
Convenient payment, claims
IN
giving top priorities to its clientele, Insular Life
offers them convenient and customer-friendly payment and
claim facilities.
The
insurance company has launched the Premium Deal-lite
program, which allows the policyholder to pay his
premiums amounting to at least P3,000 using his credit
card with payments amortized over three months—interest
free. This offering is provided to Bankard, Bank of the
Philippine Islands, Banco de Oro, HSBC and Union Bank
credit-card holders, among others. Accepting payment
facilities for this are available at selected Insular
Life branches.
Meanwhile for policyholders’ and their dependents’
benefits, claims can be filed and disbursed in any of
Insular’s district offices across the country.
To bring
Insular Life closer to its customers, the company is
banking on its extensive and strategically located
branch network across the country and its around 3,000
agents. Also, it has pioneered in the use of direct
marketing through mail and print advertisements, while
coming up with telesales that give a more instantaneous
connection between the firm and its customers.
Recognizing the importance of information technology,
Insular Life is constantly improving its web site and
24/7 customer hot lines to address any concerns the
investing public have with regard to their insurance
policies. |
