18 Νοε 2013 (πριν από 2 χρόνια και 11 μήνες)

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Private Employee Benefits
Summary of Social Security and

Your Local Link to IGP in the Philippines:
Insular Life Assurance Company, Ltd.

© 2012 International Group Program 1

Established on November 25, 1910, Insular Life Assurance Company, Ltd. has withstood
world wars, several economic and political upheavals and natural calamities to become the first
and largest Filipino life insurance company as well as one of the leading full service financial
institutions in the Philippines. Through the years, Insular Life has built its reputation as a strong
financial institution worthy of the people’s trust.

Amidst the strong economic headwinds in 2011, Insular Life drew on its strength to produce
positive results, posting an increase in its net income to PHP2.059 billion (USD 46.79 million)
compared to 2010 performance.

The total assets rose from PHP 71.8 billion in 2010 to PHP 79.9 billion in 2011.

Total policyholders’ benefits and operating expenses rose to PHP 11.99 billion, from PHP 11.98
billion in 2010. Total life insurance in-force at the end of 2011 amounted to PHP 207 billion.
Consolidated assets rose 10 percent to PHP 80 billion, from PHP 72 billion in 2010. Total
members’ equity grew 15 percent to PHP 20.20 billion, up from PHP 17.21 billion.

Insular Life’s superior product line, which includes ordinary whole life endowment,
limited-payment, college education and insurance plans, as well as pension plans, offers the best
cost-benefit ratios among insurance plans in the market. It can also lay claim to innovations such
as the introduction of group insurance, industrial life insurance and direct marketing for life
insurance in the Philippines.

Indeed, in recognition of its superior product range, Insular Life was conferred a prestigious Gold
Superbrand award by Reader’s Digest in 2005 and 2006. The Superbrand award is widely
considered as an accurate benchmark of consumer approval. Insular Life was one of only two
brands chosen in the insurance category in the Philippines.

In 2009, Insular Life embarked on a new journey of self-discovery and came up with a new brand
promise: “Your far-sighted guardian.” This is depicted in its new logo that features the Philippine
eagle, the Pithecophaga jefferyi. With its forward gaze, keen and sharp vision, the eagle
represents Insular Life’s commitment to look out for its customers’ needs at every life stage and
to help them plan ahead for an assured and financially secure future. Insular Life’s new brand
identity also pays homage to the original Insular Life seal used in 1910 that also depicted an
eagle. Along with its new logo and other representations of its new visual identity is its new
corporate tagline, “Look ahead. Be assured.”

While insurance remains its core business, Insular Life has diversified into allied financial
services, establishing three wholly-owned subsidiaries: Insular Life Health Care, Inc. (I-Care),
Insular Investment & Trust Corporation (IITC), and HomeCredit Mutual Building and Loan
Association, Inc. (Home Credit).

Insular Health Care, Inc. is one of the top ten Health Maintenance Organizations (HMO) in
the country in terms of capitalization, comprehensive health care plans and service delivery.

Insular Investment Corporation is a full service investment house providing products and
services in corporate finance, money market, and trust and investment management.

Insular Home Credit provides housing opportunities through its various financing programs
notably the Rent-to-Own scheme.

Insular Life General Insurance Company, also an Insular Life subsidiary, merged with
Mapfre Corporation’s local non-life insurance subsidiary, Mapfre Asian Insurance
Corporation to form the Mapfre Insular Insurance Corporation in 2005. Mapfre is an
international financial group with operations in 45 countries worldwide.

Your Local Link to IGP in the Philippines:
Insular Life Assurance Company, Ltd.

© 2012 International Group Program 2

Equally significant is Insular Life’s contribution to social development through various corporate
social responsibility programs under the Insular Life Foundation, Inc. Over a thousand deserving
scholars have received college and vocational education through the company’s scholarship
programs since 1962. The company’s more recent outreach projects include supporting the
Department of Education’s Adopt-a-School program. True to its Filipino identity, Insular Life has
also been supporting the search for The Outstanding Filipino (TOFIL) since its inception in 1988.

Insular Life has been an IGP Network Partner since 1967.

Key Products



Accidental Death and Disability

Permanent and Total Disability Rider

Credit Life

Dependent Life

Dread Disease

Group Universal Life

Life Cover for Retirees

Optional Supplemental Life



Hospital and Surgical

Major Medical

Out-Patient Medical


Managed Funds


Term Life Policy with Benefits Paid in US Dollars

Credit Life Policy with Benefits Paid in US Dollars


Insular Life is located in the internet at

Summary of Social Security and
Customary Private Employee Benefit Plans

© 2012 International Group Program 3
Social Security

Coverage under Social Security is compulsory for the following:

All private sector employees, whether permanent, temporary or
provisional who are not over 60 years of age;

Filipino seafarers;

Employees of a foreign government, international organization or their
wholly-owned operation based in the Philippines, which entered into an
administrative agreement with the Social Security System (SSS) for the
coverage of its Filipino workers;

Self-employed farmers and fishermen earning at least PHP 1,500 a

All self-employed persons not over 60 years old with an income of at least
PHP 1,000 a month;

Household helpers who are receiving at least PHP 1,000 a month;

Children below 15 years of age; and

Parents, spouse or child(ren) (under age 21) of the owner of a single
proprietorship business.

Coverage is voluntary for the following:

Separated Members
— Employees who are separated from their previous
employment and would like to continue paying their contributions on a
voluntary basis.

Employees Under Foreign Employers
— Employees of foreign
governments, international or governmental organizations, such as

Overseas Workers in Countries with Bilateral Agreements with the
— Overseas workers employed in countries that have signed
an agreement with the Philippine Government to include Filipinos and
their nationals in the Social Security coverage of their countries; e.g.,
United Kingdom.

Employees of Foreign-Based Employers
— Employees recruited in the
Philippines by foreign-based employers for employment abroad.

Non-working Spouses of SSS Members
— A person legally married to an
SSS member who devotes his or her full time to the management of his or
her household and family affairs. He or she has never been a member of
the SSS. His or her contributions will be based on 50% of the working
spouse’s monthly salary credit, but in no case shall it be lower than PHP

Summary of Social Security and
Customary Private Employee Benefit Plans

© 2012 International Group Program 4
Contribution is based on a schedule per salary bracket for both employer and

Sickness Benefit:
A daily cash allowance paid to a member for the number of days he or she is
unable to work due to injury or sickness.

Maternity Benefit:
A daily cash allowance granted to a female employee who temporarily stops
working due to childbirth or miscarriage.

Disability Benefit:
Cash benefits, a lump sum or monthly pension for a member who becomes
either totally or partially permanently disabled.

Retirement Benefit:
A member who reaches age 60 and is no longer employed, or age 65 whether
employed or unemployed, will receive a monthly pension for life if he or she
has paid at least 120 monthly contributions, or a lump sum if less than 120
monthly contributions have been paid.

Death Benefit:
The primary beneficiary will receive a monthly pension if the deceased
member has paid at least 36 monthly contributions or a lump sum if he or she
has paid less than 36 monthly contributions.

Funeral Benefit:
A cash benefit of PHP 15,000 is paid to the beneficiaries or to any person who
paid the burial expenses.

Dependent's Pension:
This additional pension is granted to each (up to five) dependent child of a
deceased member, a totally disabled member or a retiree pensioner, equal
to 10% of the monthly pension or PHP 250, whichever is higher.

Summary of Social Security and
Customary Private Employee Benefit Plans

© 2012 International Group Program 5
Employees' Compensation and State Insurance Fund

Eligibility: All employees in industrial, commercial, and agricultural establishments, as
well as in religious, charitable, and educational institutions, are eligible. All
government employees are eligible except elected officials.

Contributions: Contributions are paid by the employer. The same amount is paid for all


Death benefits

Disability benefits

Medical care and rehabilitation

Compensation for survivors

Funeral expense benefit

National Health Insurance Program (NHIP)

Eligibility: Universal coverage for all Filipinos, including their dependents.

Contributions: Premiums are based on monthly salary.

Benefits: Each sickness or injury requiring hospitalization/surgical operation is covered.
Complications of pregnancy and surgical family planning procedures like
vasectomy and ligation are also covered.

Home Development Mutual Fund (Pag-IBIG Fund)

The Home Development Mutual Fund (HDMF) was established in 1978 by
Presidential decree to promote home ownership via a nationwide savings
scheme. It also provides small and short-term loans and other benefits for its

The Social Security System (SSS) handled the funds of private employees,
and the Government Service Insurance System (GSIS) handled the funds of
government workers. In 1979, the two funds were merged and became what is
known as the Pag-IBIG Fund.

Membership in the Fund is mandatory for all employees covered by the Social
Security System and the Government Service Insurance System, and their
respective employers.

Coverage for employees whose monthly earnings are less than PHP 4,000 is

Summary of Social Security and
Customary Private Employee Benefit Plans

© 2012 International Group Program 6
Membership in the fund is also open to:

Self-employed workers such as professionals and businessmen

Overseas contract workers (OCWs)

Residents and immigrants in the US and Canada

Informal income groups such as cooperative members

Non-working spouses


Employees must contribute 2% of monthly compensation, (or 1% if
earning PHP 1,500 per month or less); additional contributions may also
be made.

Employers are mandated to match their employees’ monthly contributions
with an amount equivalent to 2% of the monthly compensation of each
covered employee.

For self-employed members, the monthly contribution is equivalent to 2%
of their monthly gross earnings.


Upon termination of membership, in accordance with the rules on
termination, an eligible member is entitled to receive his or her total
accumulated value in the Fund. In addition to the member’s total
accumulated value in the Fund, there is a death benefit payable of PHP

The Pag-IBIG Expanded Housing Loan Program (EHLP) is available to
eligible members. The maximum loan is PHP 2,000,000.

The Multi-Purpose Loan (MPL) Program provides immediate assistance
to eligible Pag-IBIG members so that they can finance medical,
educational, livelihood, minor home improvement, purchase of
appliances and furniture, and other related needs.

The Pag-IBIG Overseas Program (POP) provides eligible Filipino
overseas workers/immigrants the opportunity to obtain a housing loan for
as much as PHP 2,000,000.

Other loan programs include the Land Development and Construction
Program, Stock Investment Loan Program and Home
Repair/Improvement Loan Program.

Information on the Pag-IBIG Fund can be found on:

Summary of Social Security and
Customary Private Employee Benefit Plans

© 2012 International Group Program 7
Private Employee Benefits

Group Life Insurance, Group Medical Insurance, and Retirement Benefit Plans
are part of the total compensation scheme of private employers. These plans
are formal in nature and are funded systematically.

Group Life
Insurance Plans:
This plan is issued on a yearly renewable term with some supplementary
benefits, such as accidental death and disability, waiver of premium,
permanent and total disability, and dependent's life insurance providing
nominal coverages for an employee's spouse and children. Two times annual
salary is a typical benefit.

The majority of group life plans are employer-financed.

Group Medical
Insurance Plans:
This plan is also issued on a yearly renewable term and falls under two general
categories — basic hospitalization and major medical insurance plans. The
basic hospitalization plan provides reimbursements for specific medical
expenses such as room and board, special hospital services, surgical fees and
doctor's calls. A Major Medical plan, on the other hand, provides payment of a
percentage of the covered medical expenses in excess of a specified
deductible amount, up to a specified maximum.

Private medical plans are usually coordinated with the National Health
Insurance Program (NHIP). Some are integrated with, inclusive of or
superimposed on NHIP and are payable only after NHIP payments.

Most of the existing health insurance plans are paid for entirely by the
employer, in so far as employee coverage is concerned. Dependent's
coverage is either partially or totally employee-financed.

Retirement Benefit Plans:
The normal retirement age is 60, to coincide with Social Security. Full benefits
are payable after 10 years and as early as age 50. The most common benefit
at retirement is a lump sum. In fixed-benefit type plans, the amount is usually
one final month's salary per year of pensionable service.

A majority of retirement plans are non-contributory.