What Is MB Life MOST18: FAQ

The MB Life MOST18 is a term life insurance product offered by the Manila Bankers Life Insurance Corporation. It was launched in partnership with the International Marketing Group which is a financial distribution company.

What is Term Life Insurance

The term life insurance is the cheapest among the types of life insurance available in the market that insures you within a specific period of time. The “term” means the length of time and refers to how long the policy will be active thus it has an expiration. And when it expires, you have the option of whether to renew or terminate your policy.

Upon renewal, you do not need to undergo medical writing and you can also choose to convert it to other types of life insurance. Remember that term life insurance only provides face amount or death benefit for a fixed period of time depending on your policy. Purchasing term life insurance can be a good tandem of BUY TERM INVEST the DIFFERENCE financial strategy.

The Company

Manila Bankers Life Insurance Corporation, or simply MB Life, is a life insurance company that was established on May 19, 1967, and founded by late Senator Gil Puyat. The company was the result when the Alpha Mutual Life Insurance Company and Bankers Life Insurance Corporation merged.

The company is based in Makati City, Philippines with SEC Registration Number 15238 and Certificate Authority Number 2016/14-R. It is now more than 50 years in the financial industry.

You can visit their official website here.

What Is MB Life MOST18

The MOST18 stands for Multiple Option Super Term 18. It is a term life insurance with Premium Deposit Fund (PDF) which allows maximum coverage at a minimal cost. Why? For the same amount of protection, the MB Life MOST18 has a cheaper premium compared to other life insurance products being offered.

It is “multiple options” since the investment side, the PDF can serve different purposes. You can invest your money that will serve as an education fund, retirement fund, or for buying your dream house. It can be a good instrument in achieving financial goals.

I also personally recommend keeping some portion of your emergency fund in the PDF since it is guaranteed not to have negative growth. It is also advisable to maintain an amount in the PDF that is enough to cover your premium to avoid the policy from becoming lapsed in case you cannot pay the premium.

The number 18 means that you will be insured for 18 years with the same amount of premium. After 18 years, you may still renew your policy or convert it to whole life insurance as long as you think you still need life insurance.

VUL vs BTID

I came across many sites discussing VUL and BTID. There are also some posts on Facebook pages that are comparing the two. Some are saying that the other one is inferior to the other. People are even giving the advice to cancel the policy and to switch to BTID. Others are saying that VUL is better in the long run. In fact, as you read the comments you can say that there is really a tension between the two. However, they have also some valid points.

So, what is may take regarding this unending discussion?

You cannot completely compare the two. When making a comparison, there are some criteria that you need to meet. One of these is it should be of the same type of product or similar at least. You should only compare the apple with an apple and not with orange.

What Is VUL

VUL stands for Variable Universal Life Insurance. It is a type of life insurance coupled with investment. VUL is good for people who are not yet fully disciplined when it comes to saving money or investing. It can force you to do so since you need to pay your premium in which a portion of what you paid will be allotted to the investment side.

In availing VUL, always remember that it is a life insurance product and not to totally treat it as an investment vehicle. The main purpose of the product is to provide income protection and the investment side is just a bonus.

What Is BTID

BTID stands for Buy Term Invest the Difference. Unlike on VUL, BTID is NOT A FINANCIAL PRODUCT BUT A FINANCIAL STRATEGY. Meaning you will avail of a term life insurance product and you will personally do the investing.

So, why thus the two are being compared? We know that the premium of term life insurance is much cheaper than VUL insurance. Instead of availing a VUL insurance which has a higher premium, you will avail term life insurance. And the difference of the premium that you pay between the two, you can invest it directly to other investment vehicles.

The 4 Corner Stone Of A Strong Financial Future

Safety. We do not want to lose our money, right? As much as possible, we want our money is in good hands. That’s why we must see to it that we only put it to where it is secure.

Growth. Are your earnings enough to achieve your financial goals? We want to maximize the earning potentials of our money and as much as possible to avoid negative growth. But we know that the higher the potential gains, the higher the risk.

Tax Advantage. Who doesn’t want to have a tax-free? Being tax-exempt means more money can go into our pocket. The total death benefit of life insurance is not subject to tax.

Protection. Is the product can provide income protection? In case you, as the breadwinner, will be taken from this world, can your family still support themselves financially?

Fortunately, these four cornerstones are all present just in one product, the MB Life MOST18.

What Makes MB Life MOST18 Unique

Affordability. It is a term life insurance making it one of the cheapest life insurance available in the market. Moreover, it is approximately 50% lower than most life insurance like endowment and whole life which allows you to have a higher face amount.

Higher Fund Value. If the market is performing good, you can have an earning of more or less 12% per annum. But we know that it is not always the case. If the market is down, you do not need to worry since the money you put in PDF is with guaranteed rate of return. To simply put, it will not have a negative growth. The earnings will be based on interest rate of the top three commercial banks in the Philippines. In addition, any excess you pay to your premium will go directly to the PDF without any corresponding fee.

Premium Flexibility. Settle your contributions based on a schedule that suits your lifestyle. You can pay annually, semi-annually, quarterly or one time payment.

Withdrawal (No Loan Charge ) Advantage. It is unavoidable that you will encounter some emergencies in your life. And in some instances, the situation is far worst than you expected to make you do not have enough funds. You don’t need to worry. Withdraw money from your PDF anytime without any corresponding penalty and still have the protection or coverage.

Increasing Coverage. While your PDF is increasing, your death benefit is also increasing since it is always added to your protection or coverage.

Issue Age Is 5 to 60 Years Old. You can insure your whole family.

Convertible To Permanent Life Insurance. You have an option to convert your policy to a permanent plan given that you are not yet 65 years old.

Renewable At The Expiry Date. You can renew your policy for another 18 years before you reach 60 years old.

Low Chance Of Lapsation. Premiums may be settled through your investment earnings.

Fund Advantage. You already have a savings on the 1^st year which you may withdraw if you needed some money.

Alternative Investment Flexibility. Free to decide where to invest the difference in buying term life insurance.

Address Various Financial Needs. The Premium Deposit Fund (PDF) can serve different purposes that you need. You can invest your money intended for whatever financial goals you have.

FAQ About MB Life MOST18

How much is the policy fee

The policy fee is only Php 500 and you only need to pay it once.

How much is the minimum amount you can invest in PDF

The initial minimum amount is Php 6,000. This is to ensure that you have enough funds to cover your premium for a year without cancellation of your policy. The minimal amount that you can add thereafter is Php 1,000.

How many times can I withraw money from my PDF

You can withdraw from your PDF for maximum of three (3) times in a year without incurring any fees. Withdrawal made for more than three (3) times per year will be subject to applicable fees.

When is the effectivity date of the policy

The policy becomes effective only upon the payment of its first modal premium. The effective date, shown in the policy page, will be used to determine premium due dates, policy years, and policy anniversaries.

Can I change my mode of payment

The mode may be changed at any time.

How long is the grace period

After the payment of the initial premium, any premium due must be paid not later than thirty-one (31) days after its due date. Any unpaid premium is deductible from the benefits that may arise during the thirty-one (31) days grace period as long as it has sufficient funds.

How long until my policy will lapse

If any premium is not paid by the end of the 31-day grace period, your policy will lapse and all its benefits will end.

Can I reinstate my policy

Subject to the approval of the Company, this Policy may be reinstated at any time within three (3) years from the due date of the premium in default provided: (a) this Policy has not been surrendered for cash; (b) a written application for reinstatement is submitted together with evidence of the insurability of the Insured satisfactory to the Company, and (c) all amounts necessary to put this Policy in force are received by the Company.

Can I convert my policy

The policy, if in force, maybe converted without evidence of insurability to a new policy on the insured prior to age 65 of the Insured.

What will happen if the policy owner commits suicide

The Company will not be liable if the Insured dies by suicide within two (2) years after the effective date or date of the last reinstatement of this Policy; provided, however, that suicide committed in the state of insanity will be compensable regardless of the date of commission. Where suicide is not compensable, the liability of the Company will be limited to the return of premiums.

Can I renew my policy

If at the end of the term of this Policy, the Insured has not reached age 60, this Policy may be renewed for the period shown in the Schedule of Benefits and Premiums. Renewal will be effective upon payment of the premium corresponding to the Insured’s attained age.

If under the terms of a rider providing benefits in the event of a total and permanent disability attached to this Policy a premium due at the end of the term of this Policy would be waived, this Policy will automatically be renewed in accordance with this Renewal provision.

What Are The Requirements To Avail MB Life MOST18

1. ) Application form
2. ) Signed Proposal Sheet
3. ) Photocopy of one (1) valid ID with three specimen signature.
4. ) Medical Requirements (IF over Php 1M coverage)

Why MB Life MOST18 Is A Good Product

MB Life MOST18 is recommended for people who do not have much money to pay higher premiums with the same amount of death benefit. You are already insured with the same face amount of other life insurance products but you are paying lesser premiums.

The product is also good if you are looking for straightforward life insurance since the investment part is optional. The premiums you pay do not include the amount that will go to the PDF. It is up to you if you want to invest money through a premium deposit fund.

The money you put in the Premium Deposit Fund is guaranteed not to have negative growth. The least potential earnings you can have is the highest interest rate of the top three commercial banks in the Philippines.

Remember that there is NO BEST INSURANCE product that will suit everyone. Every life insurance product has unique features and designed to cater to different financial needs. And every one of us have different needs. So, you cannot say that this particular insurance product is superior.

You must carefully assess what life insurance product you need together with a financial adviser or financial coach. That is to avoid availing life insurance that does not address or is aligned with your purpose that can lead to discontentment or even cancellation of the policy.

If you are interested and want to have a proposal, do not hesitate to comment below or to contact us.