Philippine Prudential Life Insurance Company, Inc. | FAQs - Philippine Prudential Life Insurance Company, Inc.

FAQs

To help you find answers about our company or the services we offer, the frequently asked questions are categorized by topic. Click on the topic you want to review the related questions and answers. If you do not find the information you need, just email your questions to us and we will reply to you promptly.

About our Company…

How do I check up on a company’s financial strength?: You can check on the financial strength of the company in the Financial Highlights found in the Company Profile of this website. Or, you can always check from the website or offices of the Insurance Commission on the solvency of Philippine Prudential Life Insurance Company, Inc. The website of the Insurance Commission is http://www.insurance.gov.ph while its telephone number is (632) 532-8461 to 70. Its office can be found at 1071 U. N. Avenue in Manila.
How long has Philippine Prudential Life been in the life insurance business?: Philippine Prudential Life has been serving the life insurance needs of Filipino families for 47 years now or since 1963. Serving more than 1.5 million policyholders and their families with over P46 billion business in force, Philippine Prudential Life is eager to help you live a more secured life with its various life and health insurance plans.
How many offices or branches do you have?: Currently, we have 14 offices and branches serving your insurance needs. Our Home Office is located at the 3rd and 5th floor of the AIC Burgundy Empire Tower in Pasig City. A complete listing can be found in Contact Us.
What government agency has regulatory authority over life insurance companies?: The Insurance Commission is the regulatory authority over life insurance companies. The Insurance Commission carefully regulates and closely supervises all the transactions of a life insurance company and safeguards the margin of insolvency, security fund, asset values and investments restrictions. This office conducts yearly audits and issues a Certificate of Authority thereafter which is the assurance that a life insurance company is qualified to transact insurance business and justifies the integrity and responsibility to reasonably assure the safety and interest of its policyholders and the public. Philippine Prudential Life is proud to say that our company had never had any problem in getting its Certificate of Authority and in fact, has always been the first to be issued such.

About our Life Insurance..

As a newly married couple, when should we buy life insurance?: You should buy life insurance policies as soon as possible after you are married if not before. Once you get married, you begin to rely emotionally on your spouse and financially on the contribution to your family. The sudden and unexpected removal of this support system can hurt your finances and cause you a lot of additional stress. With life insurance benefits, you can help replace some of the financial contribution that will be missed while allowing yourself time to grieve without financial stress. If you don’t buy policies immediately, then a triggering event can serve as a reminder of the importance of life insurance. Triggering events can include the purchase of a home or car or the birth of a child. But the longer you put off buying life insurance, the more expensive your policy premium will get. When you buy a policy immediately after marriage, it will be less expensive than buying one in 5 years when you have a child.
As a single parent, money is tight. What if I can't afford the amount of life insurance I need?: When you are choosing between satisfying the immediate needs of you and your child versus the possible future needs—the choice is clear. Rent or mortgage, bills, groceries and health insurance premiums are probably higher on the priority list than a life insurance policy. But life insurance policies do pay important benefits that your child will likely need if you die an untimely death, so it is still important to attempt to get one. If your budget makes the purchase of a life insurance policy impossible, then you should check if your employer offers an inexpensive group policy that fits into your budget.
As a single person, how much life insurance do I need?: There is no right answer to determining how much life insurance any individual needs. There are many formulas you can use to help you determine the best amount for you. As a single individual, you don’t have a spouse or children to support after your death but you may still want to leave a legacy for those that you love, your parents or brothers and sisters. When determining the right amount of insurance for you, you must decide what the goal of your death benefit is and how much money you’ll need from an insurance policy to achieve that goal.
Can I change the beneficiary which I initially designated in the application form?: Once a life insurance policy has been issued and is in force, the owner of the policy (who would often also be the insured) is free to change the beneficiary to anyone he or she chooses, unless the beneficiary has been designated as irrevocable. Changing the beneficiary is easily done by filling out a form available from the insurance company and having it properly witnessed.
Do I need life insurance?: If you can afford it, there are several reasons why you may need life insurance. The most important reason is to have enough money to provide for dependents such as young children, non-working spouses or elderly parents, should you die and be no longer able to provide for them. This gives your loved ones financial security. Also, your loved ones may need money to pay for extra expenses that may arise due to your death, such as funeral expenses, or other expenses to pay off bills and debts.
I got a loan from my insurance policy, but never paid back the interest. What will happen?: The interest will be added to the value of the loan as long as there is sufficient cash value to cover the loan plus interest.
My sister and I were listed by my deceased father as beneficiaries. The insurance company paid the proceeds to my sister because she was listed first. Is this right?: If you were both listed as primary beneficiaries you and your sister should have shared the proceeds. Unless some other allocation was specified in the beneficiary designation, you should have each received 50%.
Should I name a person as the beneficiary of my life insurance or make it payable to my estate and have it distributed according to my will? Does the beneficiary have to be a relative?: When you apply to take out a new life insurance policy, the insurance company requires that the beneficiary (or beneficiaries) have an insurable interest in the insured. Frequently they would be dependents, such as a spouse or children, who would suffer a loss if the insured were to die. It is usually better to name a person or persons as your beneficiary unless there is a specific reason to designate the estate as your beneficiary - as when you have papers drawn up by a legal professional to control the disposition of the proceeds. You can name anyone you choose to be the beneficiary. You can also have multiple beneficiaries. Your beneficiary or beneficiaries do not have to be related to you.
What are the risks in life insurance?: · Occupational Risk refers to the condition of a job that may result in illness or injury, endangerment, hazard, jeopardy, peril, risk · Medical Risk is an evaluation of the health status of an individual by performing a physical examination after obtaining a health history. Various laboratory and functional tests may also be ordered to confirm a clinical impression or to screen for possible disease involvement. · Moral Hazard is a subjective characteristic of the insured that increases the probability of loss. For example: dishonesty of the insured.
What are the types of NFOs?: · Net Surrender Value – After the policy shall have been inforce for the minimum number of years required to acquire a Cash Value, the Policyholder may surrender the Policy for its Net Surrender Value (for Non-Participating Plans), which is the Cash Value derived from the Schedule of Policy Values of the Policy less any indebtedness. For Participating Plans, any remaining dividend accumulation is paid less any indebtedness under said Policy. · Extended Term Insurance (ETI) – The Policyholder may continue the Policy, without further premium payments, as an Extended Term Insurance with a level amount of insurance for the present policy year less any indebtedness under said Policy. The duration of the Extended Term Insurance will be computed based on the present age of the Policyholder. Some limitations during the effectivity of ETI: o Policy loans are not available o Policy will not earn dividends o All supplemental benefits are cancelled o Application for Cash Surrender Value is not allowed · Reduced Paid-up (RPU) - The Net Cash Value is used as a single premium to purchase a Paid-Up Insurance with a reduced amount of insurance equal to the level amount corresponding to the earned Net Surrender Value. Some limitations during effectivity of RPU: o The face amount is reduced o The policy still participates in dividends but at a lower rate o All supplemental benefits are cancelled Automatic Premium Loan - A loan is automatically charged to your policy when your premium due remains unpaid beyond the grace period, as long as there is sufficient cash value to fully or partially pay the premium.
What does it mean to be the owner of a life insurance policy? Who is the owner of my policy?: Usually, the insured is also the owner unless the policy has been specifically set-up to have a different owner. The owner is the person who has the authority to change the beneficiary and make other policy changes.
What happens if my outstanding loans plus interest due exceed the policy loan value on my policy?: You will be notified to make a payment to reduce the loan plus interest to a value that the policy can support. Otherwise, your policy will be terminated. If you have dividend accumulations, you may be advised that you can use dividends to pay down the interest and loan.
What is a policy dividend?: A policy dividend is an amount of money returned to the Policyholder of a participating policy. The money is a partial refund of the premiums paid. It results when actual mortality, investment earnings and expenses are more favorable than were expected when the premiums were set. Therefore, dividend amounts are not guaranteed.
What is a revocable and irrevocable beneficiary?: When, the beneficiary designation is revocable, the owner of the policy can change the beneficiary at any time. When the beneficiary designation is irrevocable, the owner cannot change the beneficiary unless there is a written assent from the irrevocable beneficiary. Irrevocable beneficiary designations are sometimes used in business insurance, or other special insurance situations. The irrevocable designation is intended to assure that the policy proceeds go to the intended person for the designated purpose.
What is life insurance?: Life insurance is a contract, often called a “policy”, between you and an insurance company to provide money to a person you designate, in the event that you die during the time the contract is in force. In essence, during your lifetime you pay money, known as the insurance “premium”, to the insurance company. It promises to pay money to the persons you name, the “beneficiaries”, at your death.
What is meant by a Non-forfeiture Option (NFO)?: A Non-forfeiture Option is a benefit given to a Policyholder who owns an individual permanent plan. The policy earns Cash Values that can be used to continue the life insurance coverage even if the premium remains unpaid beyond the grace period. A policyholder can select from among four options: Cash Surrender Value, Extended Term Insurance, Loan Value and Paid-Up Insurance.
What is the difference between a participating and non-participating plan?: A Participating Insurance Plan is the term used to describe a policy that earns and pays out dividends to its policyholders based on the company’s earnings. A Non-Participating Plan does not earn and give out dividends to its policyholders.
What is the difference between a Primary and a Contingent Beneficiary?: A Primary beneficiary is the person or persons first in line to receive the life insurance proceeds when the policyholder dies. Single applicants typically list a parent, sibling or both. Married individuals commonly name their spouse and children. The proceeds may be distributed in equal shares or in any percentage the insured desires. A contingent beneficiary is entitled to receive the insurance benefits only if the Primary beneficiaries cannot be located or have already died.
What is the effect of SSS or GSIS benefits on a beneficiary?: SSS or GSIS benefits have no effect on the beneficiary of a life insurance policy. The life insurance proceeds are paid on top of any benefits a policyholder has.
What is the Face value of the policy?: Face value or face amount is the amount of insurance printed on the face of your policy. It is the basic amount that the policy is worth, though it may be increased by term riders or dividend accumulations or reduced by a policy loan.
Who can take out a policy on my life?: If someone else wants to take out a life insurance on your life, your agreement and an explanation of the reason for the insurance (such as a business relationship) would be required. Also, parents would be allowed to take out policies on young children.
Why buy life insurance?: Some reasons to buy life insurance are: 1. Income Replacement 2. Funeral Expenses 3. Pay Off Debts 4. Pay Off Medical Bills 5. Mortgage life insurance

About Life And Health Insurance..

What are endowment policies?: Endowment policies are modifications of whole life. Like whole life, part of the premium goes to build up a cash value fund. An endowment policy generally has a higher premium than a whole life policy for the same amount of insurance because more of the premium is devoted to building cash value. The endowment is designed to terminate and pay out the cash amount at a designated time, such as after a prescribed number of years (for example, 20 year endowment, 30 year endowment) or at a specific age (for example, endowment at 60, endowment at 65).
What is an insurance rider?: A rider is a supplemental contract added to the basic policy to confer additional benefits – requiring an additional premium payment. Examples include a term rider that adds extra coverage to a whole life policy or an accidental death rider which doubles the amount of insurance for death due to accident.
What is Group Insurance?: Group insurance is a method of providing insurance coverage to a group of individuals under one Master Policy Contract. It is the most common form of insurance that is used by employers to provide insurance benefits to their employees. In this case, the Master Policy is issued to the Employer who is the Policyholder. The coverage of the employees terminates upon separation / resignation from the employer. Subject to certain terms and conditions, Group Insurance may also be used to provide benefits to members of associations or professional organizations and debtors or borrowers of financial institutions.
What is term insurance?: Term life insurance is insurance that lasts for a specific time, such as 5 years or 10 years. The policy pays a death benefit in the event the insured dies during the specified period. Since term insurance is for a limited period and accumulates no cash value, the rates tend to be low for a given amount of insurance.
What is the connection between risk and life insurance?: Life insurance, like other types of insurance, is based on the concept of sharing risk. For example, everyone understands that people who are 95 years old are far more likely to die in the coming year than those who are 35. When you buy life insurance, you are basically transferring that risk to the life insurance company.
What is whole life insurance?: It is a popular type of cash value insurance that builds up cash value and continues coverage until age 90 or 100.

About our Underwriting…

A computerized statement provided by the underwriter for a specific policy shows how much money I will get back in various years after buying the policy? Are these numbers guaranteed? Is it right that I could stop paying premiums after only a certain: Read the fine print carefully. Such projections often include the value of dividends, which may be paid over the years of the projection. But dividends are not guaranteed to be as projected. The company may decide to pay less (or more) than shown in a projection. If the dividend rate changes, you may not be able to stop paying premiums in the number of years shown on the projection.
Can my policy be cancelled?: Once you have been accepted for a life insurance policy, the company is committed to the terms specified in the policy. The exception is provided by a clause in the policy called the “contestable period” (usually one or two years). During this period, the company can cancel the coverage and return the premiums if it discovers that the information given by the policyholder to qualify for the insurance contain major misstatements. Suicide is also not covered during an initial period which may be the same as the “contestable period.” The “contestable period” provides the company a reasonable opportunity to protect itself against people getting insurance they would not qualify for if they gave truthful information on their applications, and it also provides the vast majority of honest policyholders the assurance that their policies will be honored.
I am healthy but like to participate in some potentially risky activities such as auto racing, parachute jumping, Piloting experimental aircraft. Will this become an issue when I buy life insurance?: Details about these activities and how frequently you engage in them should be reported. This may result in a higher premium or even in difficulty getting insurance. Or this may be exceptions such that death due to these reasons will not be payable. Or you may not be accepted due to these activities.
I was treated for cancer about 8 years ago and the physicans have said that I was completely cured. Can I be turned down for coverage?: Increasing age increases the cost of life insurance, because the older you get, the greater your chances of dying. Being male costs more, because females live longer on average. Poor health raises the rates for life because it decreases the number of years you are likely to pay premiums and reduces the time before the company may have to pay a claim. Health is often the most important factor, followed by age and sex. Someone in poor health will have to pay a very high premium, or even become uninsurable. How might my smoking affect my ability to buy life insurance? If you are a smoker, you should expect to pay a little more for your life insurance than a non-smoker of a similar age and health. Of course, if you also have a smoking-related medical condition, then that will be taken into consideration when deciding whether to sell you life insurance and what rate you should be charged.
If I make a mistake and misstate my age when I get life insurance, will my policy be invalid?: The company will adjust the death proceeds when you die to reflect what the policy’s value would have been with the correct age. Otherwise the policy should not be affected.
What is a life insurance underwriter?: A life insurance underwriter collects and analyzes various pieces of information to help determine an applicant’s level of risk.
What is the incontestablity provision?: Normally, contracts can be voided or canceled at any time if they have been fraudulently enacted. Life insurance contracts are somewhat different because of a clause in the policy called the “incontestability provision.” Here, the company gives up its right to challenge the contract after a specified period (usually one or two years), and agrees that after this period, it will not deny claims even if serious misstatements were made in obtaining the insurance. The period during which claims are contestable provides the company a reasonable opportunity to protect itself against people getting insurance that they would not qualify for if they gave truthful information on their applications. It also provides the vast majority of honest policyholders the assurance that their policies will be honored.
What is underwriting department?: The Underwriting Department is responsible for risk assessment, which refers to the process of (1) assessing and classifying the degree of risk represented by a proposed insured or a group of insured with respect to a specific insurance product and (2) making a decision to accept or decline the risk.

About our Services…

Can a company refuse to pay a claim?: Generally, no – though there are occasionally unusual cases such as where someone disappears under mysterious circumstances, or a fraudulent claim is suspected, where payment could be withheld until it becomes clear what has happened.
Can I assign my policy?: Your policy can be assigned to a third party i.e. bank as a collateral by informing us in writing and submission of documents. For details, you can call our Customer Service Department at 902-2300.
Can I make changes on my beneficiary/ies?: You may change your beneficiary/ies anytime after the policy has been issued. The following are the requirements in change of beneficiary/ies: • Duly filled-out Amendment Form, indicating your beneficiary to be added or deleted, whichever is applicable. • For addition, to establish insurable interest and relationship of the beneficiary to the insured, the following needs to be submitted: 1. Birth certificate of the beneficiary 2. Marriage Contract, if beneficiary to be added is a married child of the owner 3.Letter establishing insurable interest, if beneficiary to be added is only a dependent of the insured and is not immediate family
How can I change my mode of payment?: You are allowed to change your mode of payment during the anniversary of your policy (i.e.from annual to semi-annual, semi-annual to quarterly or vice versa) by writing to our Customer Service Department or calling our Hotline No. 902-2300.
How can I change my status?: You have to submit to our Customer Services Department the following requirements: • Duly filled-out Amendment Form, indicating your new status and your new name • Marriage Contract • Client Information Update Form • 2 Valid Identification Cards which has been changed to your new name with your new signature
How can I correct my date of birth in my policy?: To correct your date of birth, you can amend the one in the policy by submitting the following: Filled-out Amendment Form, indicating your correct birth date • Birth Certificate showing your correct birth date • Affidavit of Discrepancy • 2 Valid Identification Cards
How can I correct my name in my policy?: certificate, you can apply for a change of name amendment. The following are the requirements: • Filled-out Amendment Form, indicating your correct name • Photocopy of your Birth Certificate • Affidavit of Discrepancy (may not be required if due to typographical error) •Two Valid Identification Cards
How can I make changes in my Policy?: If in case there are discrepancies or wrong information in your policy, you can correct it by calling our Customer Service Department at Hotline No. 902-2330. Or, you can go to the Services and check the procedure on how to make amendments in your policy.
How can I update my contact information?: You can change your contact information, primarily your address, home telephone number and mobile number by calling our Customer Service Department at Hotline No. 902-2330.
How should I file a claim?: To file a claim on a life insurance policy, for which you are the beneficiary, you should contact the company. Call and ask for instructions or go to the office in person. If you visit the office, bring along the policy and other documents relating to the policy. Also bring the death certificate. Details of how to file a claim can be answered in the Customer Service section of this website.
When can I reinstate my lapse policy and what are the requirements for reinstatement?: Your policy can be reinstated within 3 years from last due date. Once you reinstate, you return your policy to its inforce status and can once again start enjoying the benefits of your policy. For reinstatement, you have to pay for all you past due premiums and overdue interest. For more details, you can call our Customer Service Department at 902-2300.

About our Paying Premiums…

Can a company void my policy if I lie or make a mistake in completing the application?: If you make an important mistake such as neglecting to tell the company about a major health problem which could have led the company to deny you insurance, the insurance company has to discover the mistake during the “contestable period” specified in the policy. If they fail to do so, then you can have confidence that your policy will be honored – and the company cannot cancel it. If an error that would not have led to denial of coverage is discovered (often at the time of death) such as misstatement of age or sex, the company would normally adjust the amount of coverage to coincide with the correct age or sex.
How about the automatic premium loan clause?: If a policyholder has selected the automatic premium loan provision, a loan would automatically be taken against the cash value of the policy to pay the premium in the event the policy was about to lapse for non-payment of premium. This would prevent loss of the insurance protection as long as the policy has enough cash value to pay the premium.
If I forget to pay my premium and the policy lapses, is there anything I can do?: Yes. You can pay the back and currently due premiums and certify that you are still in good health. The company will require you to give evidence that you are still insurable (possibly including a medical examination). Subject to that, the premium will be accepted and the policy will be reinstated.
What happens if I pay my premium after the grace period?: Your policy will lapse after the grace period and consequently, your protection will cease. However, benefits can be restored by signing a Reinstatement Declaration/Health Statement Form and paying back all unpaid premiums plus interest. Please note that the approval of reinstatement is dependent on your answers in the Health Statement.
What if I become disabled or unemployed and cannot pay the premium?: Some of our policies include provisions that will waive the premium payments during a period of unemployment or disability. If a policyholder has selected the automatic premium loan provision, a loan would automatically be taken against the cash value of the policy to pay the premium in the event the policy was about to lapse for nonpayment of premium. This would prevent loss of the insurance protection as long as the policy has enough cash value to pay the premium.
What if I miss a premium payment, do I lose my insurance?: You have a grace period on life insurance policies to pay your premium. The grace period is typically 30 days. After that, you may or may not allow you to pay back premiums and reinstate the policy. Sometimes this may depend on whether you can provide evidence of good health. But if you are beyond the due date and grace period, you are to apply for the reinstatement of the policy and will be required to submit evidence of good health. Of course if you die and the premium has not been paid, and there is no residual value to pay premiums in the policy, the beneficiary would not be able to collect the proceeds.