Frequently Asked Questions

Traditional Plans

Unsure about insurance? Need clarification on the myriad of details? We’ve got you covered with our list of Frequently-Asked-Questions about First Life, its portfolio of plans, investments, and insurance.

Important things to know about premiums.

Your premium due dates are indicated on your policy contract and coincides with your policy anniversary date. The frequency of payment depends on your choice: annually, semi-annually, quarterly, or monthly.

It is best that you pay your policy’s premium on or before the due date to ensure that your insurance protection remains in force. A 31-day grace period after the due date, without interest charge, shall be allowed for the payment of your policy’s renewal premium. 

A notice is sent two (2) weeks before your premium due date while the reminder notice letter is sent seven (7) days after your premium due date, if your premium remains unpaid. Upon your request, we can send the soft copies of your premium and reminder notices to your email address.

Banco de Oro:

  • For online payment:
    • Log-in to https://online.bdo.com.ph/sso/login 
    • Select Financial Services/Bills Payment/Pay Bills 
    • Tick Show Company Biller not requiring enrollment
    • Select First Life Financial Co., Inc. 
  • For over the counter (always use a Payment Slip and bring your Premium or Reminder Notice):
    • Company Name: FIRST LIFE FINANCIAL CO., INC. (Institution code: 0421)

Metrobank:

EastWest Bank, Bank of Commerce, and SM Bills Payment Centers (SM Department Stores) 

  • For over the counter (always use a Payment Slip and bring your Premium or Reminder Notice):
    • Company Name: FIRST LIFE FINANCIAL CO., INC.

All First Life offices accept payments for both Peso and Dollar policies.  
For inquiries, please contact your Financial Planner or our Policyholders’ Services team through (632) 893-3024 local 722 to 728 through e-mail at policyservices@firstlife.com.ph, fax no. (632) 325-6789 or at any of our offices nearest you.

Your policy will lapse and all benefits will be forfeited. However, if your policy has already earned sufficient cash value, the Company will automatically effect your chosen Non-Forfeiture Option (NFO).

Policies may be reinstated within three (3) years from the date of premium due date in default. Note that upon reinstatement, the policy will be subject to a new two (2) year contestability period.

If reinstatement is made within the 90th day from premium due date in default, the following are the requirements:

  • Reinstatement Questionnaire (duly accomplished)
  • Payment for Unpaid Premiums + Overdue Interest
  • Payment for Outstanding Loan (if any)
  • Reinstatement Fee (PhP100.00 or USD5.00)

If reinstatement is made beyond 90 days from premium due date in default, the following are the requirements:

  • Application for Reinstatement Form (duly accomplished)
  • Health Declaration Form (duly accomplished)
  • Payment for Unpaid Premiums + Overdue Interest
  • Payment for Outstanding Loan (if any)
  • Reinstatement Fee (PhP100.00 or USD5.00)

Several circumstances result in changes on the status of your life insurance policy. Such changes may be classified into Value changes or Non-value changes. Value changes are those that will affect the policy benefits and policy schedule. Non-value changes denote changes in name, address, contact information, etc.

Remember that for any change or amendment on the policy, the consent of each irrevocable beneficiary or assignee is needed.

Value Changes

The addition of rider/s may be done anytime while the policy is in force, provided that the insured has not reached the exclusion age corresponding to the rider to be applied for. On the other hand, deletion of rider/s is allowed during policy anniversaries only. 
These are the requirements: 

  • Accomplish a Request for Amendment Form indicating the desired policy changes
  • Policy Contract
  • Rider questionnaire
  • Pay the additional premium required for addition of rider/s
  • Health Declaration or other Medical requirements (if required by Underwriting)
  • Amendment Fee (PhP100.00 or USD5.00)

The increase of sum insured is only allowed if request is made within the first six (6) months from the policy date. The new sum insured should also be within underwriting guidelines. These are the requirements: 

  • Accomplish a Request for Amendment Form indicating the desired policy changes
  • Submit Policy Contract
  • Pay the additional premium required
  • Health Declaration or other Medical requirements (if required by Underwriting)
  • Amendment Fee (PhP100.00 or USD5.00)

A request for decrease in sum insured is allowed during policy anniversaries but not later than the end of the grace period subject to the floor sum insured per plan. These are the requirements:

  • Accomplish a Request for Amendment Form indicating the desired policy changes
  • Submit Policy Contract
  • Amendment Fee (PhP100.00 or USD5.00) 
  • Accomplish a Request for Amendment Form indicating the correct birth date and age
  • Submit Policy Contract
  • Submit proof of age – photocopy of birth certificate, passport
  • Pay the additional premium required, as the case may be.
  • Accomplish a Request for Amendment Form indicating the new mode of payment
  • Additional payment (if needed)
  • For monthly mode of payment, twelve (12) postdated checks (PDCs) are required, which should be remitted to First Life not later than 31 days after the current policy anniversary date.

Non-value Changes

To ensure that your policy record has an updated contact information, please advise any of our offices or our Policyholders’ Services Department for any change in your mailing/email address, landline, mobile phone & fax numbers.   

Accomplish a Request for Amendment form, along with original or authenticated copy of legal documents to support the change or correction (e.g., marriage contract, legal papers, etc.)

Accomplish a Request for Amendment Form indicating the name of the new beneficiary, your relationship with him/her, the classification and designation of the new beneficiary/ies as to Primary or Contingent, and Revocable or Irrevocable.

  • Classifications of Beneficiary
    • Primary – first beneficiary or party designated to receive the policy proceeds following the death of the insured.
    • Contingent – if the primary beneficiary should die before the insured, the contingent or secondary beneficiary shall receive the policy proceeds.
  • Designations of Beneficiary
    • Revocable – a beneficiary who has no rights to the policy while the insured is living. Can be changed anytime by the policy owner.
    • Irrevocable – a beneficiary who possesses a vested interest on the policy proceeds even during the lifetime of the insured. Any changes on the policy require the consent of all irrevocable beneficiary/ies.

Accomplish a Request for Amendment Form together with the photocopy of legal documents to support the change or correction (e.g. birth certificate, marriage contract, adoption papers, etc.)

A benefit given to a policy as an option if a premium is unpaid when the grace period expires. Using the non-forfeiture option continues the life insurance coverage of an individual.

  • Automatic Premium Loan (APL) – 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.
  • Reduced Paid-Up (RPU) – The policy’s net surrender value is used as a single premium to purchase a non-participating paid-up insurance of the same plan as the original policy with a reduced sum insured.  

Some limitations under RPU:

  • The face amount is reduced
  • Policy will not earn dividends
  • All supplemental (rider) benefits are cancelled
  • Extended Term Insurance (ETI) – The policy’s net cash value is used to purchase term insurance for the full coverage amount provided under the original policy for as long as it can be supported.

Some limitations under ETI:

  • Policy will not earn cash values and dividends
  • All supplemental (rider) benefits are cancelled

An assignment is an agreement under which one party transfers some or all of his ownership rights in a life insurance policy to another party. The Policy Owner who makes an assignment is known as the assignor; the party to whom the policy rights are transferred is known as the assignee.

  • Accomplish and have the Collateral Assignment Form duly notarized
  • Submit Policy Contract.
     
  • The assignee should submit a Certificate or Letter of Release of Assignment (indicating the full payment owed to the collateral assignee or that the insured is already free from any indebtedness).
  • If the assignee is an institution (e.g. bank, company) the signatory should be the authorized bank/company signatory. A corporate Secretary’s Certificate attesting to the authority of the signatory to release the assignment of the policy should be submitted together with the certificate/ letter. The policy contract should also be submitted together with the aforementioned requirements.

By submitting to First Life the Absolute Assignment form along with the policy contract and due consent of all irrevocable beneficiaries.

Accomplish a notarized Affidavit of Lost Policy Contract form together with a processing fee (PhP 100.00 or USD5.00).

The Company will determine yearly as a dividend that part, if any, of the divisible surplus of the Company that may be distributed to this Policy. Dividends are not guaranteed and may vary from year to year, or that there may be no dividends to be declared at all.

Yes, annual dividend or dividend accumulation may be used to pay in part or in full the premium due or an existing policy loan.

  • Receive Dividend in Cash (CAS) – the policy’s earned dividends are paid out in cash.
  • Apply Dividends to Pay Premium (REP) – the policy’s earned dividends are used to pay the current premium due.
  • Paid-Up Additional Insurance (PUA) – the policy’s earned dividends are used as a net single premium to purchase additional paid-up whole life insurance.
  • Leave with the Company to Accumulate with Interest (DVA) – the policy’s earned dividends are left on deposit with the Company to earn interest.

If your policy has an available cash value, you may obtain a policy loan provided that the amount does not exceed the available cash value. A policy loan has annually compounded interest, at the rate set by the Company.

The requirements in availing a cash loan are:

  • Policy Loan Application Form. The form must be signed and completely accomplished by the Policy Owner and all irrevocable beneficiaries.
  • Policy Contract, (or Affidavit of Lost Policy, if policy is lost)
  • Photocopy of any Valid Identification Card (e.g. driver’s license, passport)

Your loan can be paid in cash or by check at any time. Note that an unpaid policy loan bears a compounded interest.

An unpaid policy loan, whether incurred from an unpaid premium or an actual cash loan, will bear an interest computed at a fixed rate per annum. If the interest is not paid, it is compounded so that it becomes part of the principal loan at the next policy anniversary.

Non-payment of policy loans leads to the exhaustion of the cash value reserves, which could in turn cause the policy to terminate by itself.

  • To file a claim, talk to your Financial Adviser or contact our

Policyholders’ Services Department (PSD) 

  • Basic requirements are:
    • If a beneficiary is a minor, and whose share of the proceeds is greater than PhP500,000, a Petition for the approval of the bond shall be filed in the proper court where the minor resides. Furthermore, a Judicial Guardian’s Bond is required for minor beneficiaries if proceeds are more than PhP500,000 each.
    • Additional Claim Requirements – may be required depending on the cause of death, place of death, etc. 

Variable Plans

Unsure about insurance? Need clarification on the myriad of details? We’ve got you covered with our list of Frequently-Asked-Questions about First Life, its portfolio of plans, investments and insurance.

A non-traditional life insurance plan with benefits directly linked to the performance of the units of investment fund/s you choose.

  • In a traditional life insurance plan, the premiums, cash values and Death Benefit are fixed and it is the Company that decides on where to invest the premiums.
  • In a variable life insurance plan, premiums and Death Benefit are flexible, and account values depend on the investment performance of the fund/s you have chosen. 
  • One-stop Comprehensive Product – it combines both insurance and investment into one solution to ensure that your wide range of needs are met.
  • Flexibility – versus traditional products, this product provides you the flexibility of selecting your own investment options.
  • Earning Potential – although you may have to take more risks, you are rewarded with potentially higher returns.

Your beneficiaries will receive the amount equivalent to your Sum insured or the Account Value, whichever is higher.

Upon approval of your application for insurance and upon receipt by us of your premium payment in cleared funds.

No.

It is the Bank of the Philippine Islands – Asset Management Trust Corporation (BPI AMTC). It is in charge of implementing fund investing strategies and managing portfolio trading activities.

There are three investment funds available: 

  • Bond Fund – aims for capital preservation and income generation by investing in short- to medium-term bonds and other similar fixed-income securities. It is designed to invest only in high quality fixed-income instruments that are classified as below average risk.
  • Equity Fund – aims primarily for capital growth over the medium to long term by investing in a selection of exchange-listed equities. It is designed mainly to generate long-term capital appreciation through investment in high quality equities diversified across sectors.
  • Balanced Fund – aims to achieve capital appreciation over the medium term by investing primarily in equity securities, and to some extent, in fixed-income securities. It is designed to provide total returns consisting of current income and capital growth through investment in a diversified portfolio of debt (bonds) and equity (stocks) securities from both domestic and foreign issuers.

First you must know your investment objectives, the length of time you plan to remain invested and your risk tolerance to market volatility.

Yes, you can invest in more than one fund. In fact, you can invest in all funds available to diversify your plan.

Yes, you can switch from one fund to another to take advantage of the growth of a particular fund. You are allowed one (1) free switch within a policy year. Appropriate charges shall apply for every succeeding fund switch.

A “unit” is a notional allocation of premiums in an Investment Fund used for the purpose of determining the Account Value.

  • The aggregate number of outstanding units of each Investment Fund allocated to the policy multiplied by their respective Unit Prices on the relevant Valuation Date.

Account Value = Available No. of Units x NAVPU

“Net Asset Value per Unit.” It is the value of one (1) unit of an investment fund.

The unit price or NAVPU will be released by the Company every Friday. The cutoff for the “basket of transactions” is set every Monday at 12:00 noon of the same week.

While your policy is in effect, any premium received by us, after deducting the premium charges, will be used to create units of the relevant Investment Funds according to your fund allocation instruction. The units of the relevant Investment Funds will be created based on the unit price of the Investment Fund on the valuation date immediately following receipt by us of the premiums in cleared funds.

  • No. Returns on the investment fund/s are not guaranteed. However, research has confirmed that stocks – and in particular, equity funds – go up in value over time for investors who are prepared to buy and hold for a period of time (e.g. 5-7 years).

While you will bear the risk associated with your chosen investment fund, it will also provide you with the opportunity to take advantage of growth in the economy.

An additional premium that a variable life policy owner can add to his policy to buy additional fund units.

  • Yes. The policy provides for a 15-day cooling off period that allows you to change your mind, even if you had initially decided to proceed in purchasing a variable life plan. The 15-day period begins from the time you receive your policy.
  • If you decide to cancel, you will get back the fund value of the units allocated to your policy plus all initial charges.

This is a period of 15 days from the receipt of the policy given to clients to review the policy. Within the duration of this period, the client has the option to either continue or cancel the policy.
If the client chooses to withdraw the policy within the cooling off period, the amount to be refunded shall be the value of units plus all charges.

  • Yes, you can withdraw from your fund value during an emergency. The units of the relevant investment fund/s will be cancelled.
  • Partial withdrawal from the fund will reduce your Death Benefit.
  • You are allotted one (1) free partial withdrawal in a policy year. Appropriate charges shall apply for every succeeding fund switch. 

Glossary of Terms

Agent – An authorized representative of an insurance company who sells and services insurance contracts.  First Life agents are referred to as “Financial Planners”.

Absolute Assignment – Complete transfer of all contractual rights to another person or party.

Beneficiary – The person of financial instrument named in the policy as the recipient of the insurance money in the event of the insured’s death.  There are two (2) classifications of beneficiaries:

  •  Primary – first beneficiary or party designated to receive the policy proceeds following the death of the insured.
  •  Contingent – if the primary beneficiary should die before the insured, the contingent or secondary beneficiary shall receive the policy proceeds.

There are two (2) designations for beneficiaries:

  •  Revocable – a beneficiary who has no rights to the policy while the insured is living. Can be changed anytime by the policy owner.
  •  Irrevocable – a beneficiary who possesses a vested interest on the policy proceeds even during the lifetime of the insured.  Any changes on the policy require the consent of the irrevocable beneficiary.

Cash Surrender Value – Any remaining cash value plus any accumulated dividends less any indebtedness.

Claim – A demand by a person or business who is seeking to recover for a loss.  A claim may be made against an Insurance Company when an insured said company to pay for a loss that may be covered by the insurance policy. 

Collateral Assignment – Temporary or partial transfer of some rights usually for the monetary value of the policy.

Death Claim – The amount paid to the beneficiary/ies when the insured dies. This amount is equal to the face amount less any adjustments due to outstanding policy loans, dividends, paid-up additions or outstanding premium dues. 

Due Date – The due dates for annual modes coincide with the policy anniversary. The due dates for the other modes are on the same day of the calendar month as the policy date with equal intervals from the policy date. 

Effective Date of Policy – The policy becomes effective only upon payment of its initial premium and approval by the Insurer.

Endorsement – A document attached to an insurance policy and forms part of the policy contract.

Evidence of Insurability – A statement or proof of physical condition and/or other factual information affecting a person’s eligibility for insurance. 

Grace Period – A premium due must be paid not later than thirty-one (31) days after its due date. A policy is considered in-force during the grace period.

Insured – The person whose life the policy is issued.

Insured Age – Pertains to the age of the insured as of last birthday. 

Insurer – Refers to the Insurance Company in particular. We usually use the term “Company” in our contract, attachments, endorsements and correspondences.

Lapse – Termination of coverage due to nonpayment of premium within a specified time period.

Maturity – The maturity benefit is the amount payable to a living insured at the end of an endowment period or to the owner of a whole life policy, if he lives past a certain age.

Maturity Date – The date on which an endowment insurance policy’s sum insured will be paid. 

Mode of Payment – There are four (4) modes of payment available to the policy owner: Annual, Semi-Annual, Quarterly, and Monthly. For monthly payments, we require the submission of twelve (12) post-dated checks (PDCs).

Optional Conversion Privilege – In the case of a term policy, it may be converted without further evidence of insurability to a new policy subject to the conditions of the company.

Participating or Non-Participating Policy

  • Participating Policy – a policy on which the policy owner is entitled to share in the surplus earnings of the company through policy dividends
  • Non-Participating Policy – a policy on which no dividends are paid

Policy Contract – A legally enforceable agreement between the Insurer and the policy owner.  It also refers to the printed document issued to the policy owner by the Insurer stating the terms of the insurance contract.

Policy Date – The Policy Date is the date of issue and is used to determine the premium due dates, policy years, and policy anniversaries.

Policy Duration – Pertains to the number of years and months the policy has been in-force.

Policy Owner – The person who owns the life insurance policy. He holds the contractual rights of the policy. Also known as the policyholder.

Premium – The payment, or one of the regular periodic payments that a policy owner makes payable to the Insurer to keep the insurance policy in force.

Premium Deposit Fund (PDF) – A fund wherein a policy owner may place deposits of at least PhP500 on each modal premium payment for the purpose of payment on future premiums. Interest shall be credited to this fund annually on each policy anniversary at a rate not less than the prevailing interest rate, net of tax on savings accounts in banks.

Rating – Pertains to the risk category of the insured.

Reinstatement – The policy may be reinstated at any time within three (3) years from the due date of the premium in default subject to the conditions and approval of the Insurer. Note that the contestable period of a reinstated policy runs anew for the same period after reinstatement.

Rider – A supplementary benefit attached to the principal policy in order to provide additional benefits or coverage.

Self-Liquidating Option (SLQ) – An option made available to policy owners whose policies have accumulated dividends sufficient to pay its future premiums automatically.

Sum Insured – The amount stated on the face of the insurance policy that will be paid in case of death or at maturity. Also known as the “Policy Amount”, sum insured or insurance coverage amount.

Termination – The cancellation of insurance coverage during the policy period.

Term Insurance – Plan of insurance that covers the insured for only a certain period of time (term) not for his entire life.

Trustee – A person who holds legal title to property for the benefit of another person.

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