How to maximize your Life Insurance Benefits?

When I first got my life insurance policy, I was more excited than informed.

I had this thick booklet—pages filled with words I didn't quite understand. Like many of you, I tucked it away in a drawer and told myself, "I’ll read it when I need it." Years passed. Life happened—two kids, a mortgage, unexpected emergencies—and still, I hadn’t touched the booklet. I had protection, but no idea what I was protected from.

One day, a close friend—also insured—fell seriously ill. That moment forced me to open my policy and read it cover to cover. What I discovered was eye-opening. There were benefits I didn’t even know I had.

So here’s what I want to pass on to you, from one ordinary Filipino family man to another:

You’re already protected… now it's time to maximize what you've been paying for.

💡 The Reality: Most Don’t Read the Fine Print

Let’s be honest—who really reads their insurance policy in full?
I asked a group of friends during one of our get-togethers if they ever read their policy agreement. Not one of them had. Some didn’t even know where the booklet was!

This blog is for you—the busy parent, the OFW, the hardworking Filipino who bought life insurance but isn’t sure what it covers.

🔍 5 Ways to Maximize Your Life Insurance Plan

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✅ 1. Understand Your Health Coverage

Why did you get this plan in the first place?

Was it to cover hospitalization? A critical illness? Or both?

Many Filipinos assume that any health insurance will cover everything—but that’s not always true. Some plans activate only for major illnesses like cancer, stroke, or organ failure. Others offer daily hospitalization income or minor critical illness benefits.

📌 What to do:
✔ Check if your plan covers both minor and major illnesses.
✔ Confirm if there’s a waiting period before benefits apply (usually 90 days).
✔ If you’re confused, talk to your advisor. If I’m your financial coach—message me anytime.

“My people are destroyed for lack of knowledge.” – Hosea 4:6
Don't let ignorance cost your family their future.

✅ 2. Add Riders (Optional But Powerful)

Riders are optional benefits that strengthen your protection—yes, they cost a bit more, but the added value is often worth it.

Examples of Riders:

✔Hospital Income Benefit: Daily payout if you’re confined (e.g., ₱1,000/day after 3 days).

✔Accidental Death Benefit: Extra payout on top of your life insurance.
✔Waiver of Premium: Premiums are waived if you become disabled.

📌 What to do:
✔ Ask your advisor if you can still add riders.
✔ Choose based on your lifestyle and risks.

✅ 3. Check the Investment Component (for VUL Holders)

If your plan is a VUL (Variable Unit-Linked) type, part of your premium is invested in the market.

I always tell my clients:

“Don’t just pay—participate.”

Most VUL plans allow you to switch funds up to 4 times a year, depending on your risk appetite (conservative, balanced, aggressive). These investments can help fund your:

✔Retirement

✔Children’s education
✔Emergency fund

📌 What to do:
✔ Review your fund allocation regularly.
✔ Ask for a quarterly report from your advisor.
✔ If you want to learn how investments work, message me—I’ll walk you through it.

✅ 4. Enjoy Tax-Free Benefits

Here’s the hidden gem many forget:

According to the National Internal Revenue Code of 1997, Section 32(B)(1), life insurance is exempt from income tax when paid to beneficiaries—if it’s structured properly.

📌 Important:
✔ Ensure your beneficiary is irrevocable to avoid tax issues.
✔ Review your beneficiary setup with your advisor.

Your policy is more than protection—it’s a tax-free legacy.

✅ 5. Talk to Your Advisor Regularly

Life changes. Your plan should evolve too.

✔ Got married? Update your beneficiaries.
✔ New child? Increase your coverage.
 New job or income? Re-assess your investment contributions.

📌 What to do:
✔ Schedule an annual policy review.
✔ Don’t wait until a crisis to understand your plan.

🙏 A Spiritual Perspective

In the parable of the talents (Matthew 25:14-30), Jesus commends the servant who maximized what was entrusted to him.

“Well done, good and faithful servant…”

What you have—your income, your protection, your family—is entrusted to you by God. Life insurance is not just a modern financial tool. It’s a biblical act of stewardship.
It ensures you leave behind order, not chaos. Love, not liabilities.

💬  Don't Just Be Covered. Be Empowered.

You already made the wise choice of securing life insurance.
Now, take the next step—own it, understand it, and make it work for you.

🎯 Take Action Today:

📞 Contact your advisor for a policy review.

📘 Read through your benefit summary.
🗂 Check if your riders, investment allocations, and beneficiary setup are updated.
💬 Message me if you need help walking through your plan.