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How to maximize your Insurance Benefits?

A lot of you when you invested for Insurance may have read the summary of your protection but have not fully understood the benefits of your protection package. Hopefully, as we unpack some details on this blog, this will help you maximize your insurance benefits.

1. Check the health coverage

Why did you purchase insurance? Whether you like it or not, you have subscribed to something in which there is an exchange of goods. So you got to check it out! If you purchased insurance for your health protection make sure that you know its full content. Does the plan cover when you get hospitalized or does it only take effect only when you are diagnosed with a critical illness? This can be tricky. So, check your copy or contact your financial consultant if you do not understand your plan benefits. If you are my client please contact me on the details below. Let’s take a look at critical illness. These are specifically designed plans only for critical conditions. The list below is just a sample from one of the plans under Sun Life Financial.

Here is an excerpt from the Sun Life plan coverage: ” If the life insured has been diagnosed, while living, to have contracted any one or more from the different groups of the following Critical Illnesses as listed and/or has undergone any of the specified surgeries, then you will receive a percentage of Protection Amount. The percentage will be based on the following: 20% for Minor CI, 10% for Angioplasty Benefit, and 100% for Major CI less any Minor CI and Angioplasty Benefit, subject to applicable provisions. The diagnosis of any Critical Illness must occur more than 90 days after the date the policy comes into force.”

Image How to Maximize your Insurance Benefits

2. Use Riders

Also, you can maximize the benefits of your insurance protection by adding riders to your coverage. Riders are add-ons benefits on your plan which has added cost. For example, there are plans that can be added with Hospital Income Benefits. This is a huge help to your protection when you encounter hospitalization. It pays a daily amount of coverage depending on your desired amount of protection. With Sun Life, there is a required 3-days confinement in the hospital to be able to file a claim for Hospital Income Benefits.

4. Tap up on Investments

Investment is a huge factor why most of my clients have invested in VUL linked Insurance protection plans. Aside from Insurance protection, most of them aim to use the investments for retirement and or education of their kids. Using investment earnings you can fully maximize your insurance benefits.

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Image Source: Sun Life Financial

5. Enjoy a Non-Taxed Benefits

Here is the big deal here. Most of you do know this so pay attention to fully maximize your policy. According to National Internal Revenue of 1997 Section 32 Gross Income The following items shall not be included in gross income and shall be exempt from taxation under this Title:

Life Insurance. – The proceeds of life insurance policies paid to the heirs or beneficiaries upon the death of the insured, whether in a single sum or otherwise, but if such amounts are held by the insurer under an agreement to pay interest thereon, the interest payments shall be included in gross income.

Now have you felt like you have not fully maximized your plan? Contact your financial consultant now, and be recharged by reviewing your policy and see for yourself how can you make some adjustments on your plan. If you act now, I am sure moving forward, whatever happens working out some of the benefits above we can surely maximize the use of our life insurance protection plan.

Hi, my name is Jack Marbida, I am a financial advisor from Sun Life Financial for over 4 years now. My goal is to help thousands of Filipino people understand and embrace the spirit of financial preparation through our program, “Financial Freedom”. I know you need help but you just don’t know where to start. Allow me to help you establish a brighter future. Click here for more information. Check what I have been doing here.

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20 thoughts on “How to maximize your Insurance Benefits?

  1. Just got a hospitalization plan from another company, recently. I do not know that Sun Life has this kind of service, until I read your post. I know that Sunlife is into retirement plan and investment (like your money will earn something after xx period).

  2. Insurance can have a great purposes that can use it in the future and for emergency and I’ am always check about their the health coverage although I don’t have any insurance awesome tips it would help a lot!

  3. I have excellent insurance right now but in a couple of years it is going to no longer be available and I will be having to figure it all out again. This will be a helpful reference for that problem!

  4. Such great information. Insurance can be confusing at times, but it is always best to be informed. Great tips!

  5. I’m guilty of reading the summary and not the full policy. I’m starting to realize it’s just an overview, this is a very helpful post. I’ll share this with my husband.

  6. This is really helpful. My life insurance is mostly taken care by my father. I am sharing this with him and start a conversation 🙂

  7. Great advice. Thankfully my employer provides full health care cover so I don’t have to stress about it. I do however always take out separate travel insurance to cover any eventuality when I go abroad.

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