Also known as: insurer, broker or commission agent, an insurance company is a commercial entity acting on behalf of someone or something. Also commonly found in Safeco Agent login: Insurance, Legal, Accountants, Dictionary, Thesaurus and Acronyms. An insurance company, also known as a corporation, is a commercial entity, which sells the assurance to pay for specific expenses from the risk of the insured event, called the premium. An insurance company sells policies from time to time and issues them to the customers, who pay for the policies.
The Insurance Industry in the Philippines is booming. This growth is due to several factors: the Philippine Stock Exchange (PSX), the Asian Financial Markets, and the Philippine Real Estate Investing. According to estimates, almost 30% of Pampanga’s Gross Domestic Product comes from the sale of Insurance. Most insurance companies are located in major cities like Baguio City, Dumaguete, Manila and Tagaytay. Most of the major players in the industry are from the provinces of Cavite, Baguio and Tagaytay. Some of the largest insurers in the country are: BCG, Pampanga Insurance Company, SM Group, Albeez Insurance Company, Cebu Pacific Insurance Company, PNB Life Insurance Company, and MCS Insurance Company.
Death Benefit. A policyholder pays a specific amount of premiums to a beneficiary who is either a member of the family or a designated person appointed by the company. Beneficiaries receive payments based on the death benefit provided under the policy. Policyholders can also opt to have a cash surrender value in lieu of death benefits. A policyholder can transfer funds from a life insurance company account to another one, upon the policyholder’s death. In the past, the beneficiaries received payments from the policyholder’s estate; however, this practice is no longer applicable in the Philippines.
Liability Insurance. Similar to other Philippine insurance products, liability insurance provides coverage for medical and property damages resulting from accidents involving the insured and third parties. There are two types of liability policies available in the Philippines. These policies are Non-Acute Insurance and Accident Liability Insurance.
Casualty Insurance. Casualty insurance is applicable in the Philippines and is one of the most popular insurances in the country. It offers coverage for personal accidents and disasters. It is also popular among businesses that have employees that work at risk for lawsuits or for employers that are responsible for employee injury. Casualty insurance company can be a part of a group or purchased individually.
Residual Income and Profit Insurance. Residual income and profit insurance policies are considered as income replacement policies in the Philippine insurance industry. This means that the amount of premium income paid out is equivalent to the sum of money invested if the policyholder dies. Residual income policies are regulated by the Insured Retirement Benefits Act.
Premium Income Protection Insurance. This type of policy is offered by the standard lines carrier. A standard lines carrier is a company that insures the policyholders’ accounts receivable only and does not insure their investment.
You must buy insurance policies from a reputable company with good reputation. Insurance agents may not disclose important facts about the company or the plans. It is up to you to ask the agent any questions regarding the plan. You should also ensure that you get enough information about the premiums so you will know how much you are paying for your policy.
When choosing an insurance company, you have to remember that different insurance companies offer different types of plans and premiums. Choose an insurer who can give you an insurance plan that fits your budget and your goals. Ask friends, relatives, and colleagues for referrals if they have used any.