Term life insurance often gets brushed aside as “just temporary,” but for many Filipinos, it may be the most practical—and powerful—financial move they can make today.
“Term insurance is typically recommended for people that are cash-strapped and working on a budget but need the protection,” said Rienzie Biolena, Registered Financial Planner, in an interview with Financial Adviser PH. “As it provides the most coverage for the least cost, term insurance is the budget-friendly approach—perhaps a temporary and stop-gap measure for protection.”
Term insurance offers pure protection. Unlike Variable Unit-Linked (VUL) insurance, it doesn’t have an investment component—which means all your premium goes toward coverage. And it’s cheap. “To illustrate, I have one client looking for ₱5.2 million in coverage. The price for term insurance ranges from ₱20,000 to ₱44,000, while VULs cost between ₱67,000 to ₱175,000—for the exact same coverage,” Biolena shared.
That price difference matters—especially if you’re just starting out or managing multiple financial priorities. For people in their 20s and 30s still building their emergency funds or investing for the future, term insurance offers essential protection without draining your cash flow.
But Biolena emphasizes that the product should match the person—not the other way around. “Problems arise when a client is fit to a product or a strategy, when it should be the other way around,” he warned. This mismatch can lead to policy lapses, unmet expectations, and even derail other financial goals.
His advice? Focus on what works for you. “The one that is most fit to the client. That’s the best choice.”
Bottom line: Term insurance may not come with bells and whistles, but don’t underestimate its value. It protects what matters most—your family and future—while giving you room to grow financially.
And in a world full of financial noise, simplicity and affordability might just be the smartest strategy.
