Question 1

Can I change this term policy into a permanent one later?

Accepted Answer

Yes. You can convert this policy to any permanent life insurance plan the company offers, without needing a new medical exam.

Question 2

Can I convert to a policy for a higher amount?

Accepted Answer

No. The amount of the new permanent policy cannot be more than the original Sum Insured of your 10 Year Term policy.

Question 3

How does the conversion process work?

Accepted Answer

To convert, you must:
 • Submit a written request to the company during the conversion period.
 • Surrender the original term policy.
 • The new permanent policy will be issued based on your current age and the sum insured of the original policy. 
 • Premiums will be calculated using your age at the time of conversion.

There are few important rules:
You must convert before the policy's termination date and at least two years before the policy ends.
 • The insured person must be under 60 years old.
 • You must submit a written request to the company and surrender your current policy.

Question 4

Does this policy build cash value or earn money over time?

Question 5

How is the premium for the new permanent plan calculated?

Question 6

If I miss a premium payment, does my coverage stop immediately?

Question 7

What is the difference between "10-Pay Term to Age 65" and "Regular Pay Term to Age 65"?

Accepted Answer

• 10-Pay Term to Age 65: You pay premiums for only 10 years, but coverage lasts until age 65.
 • Regular Pay Term to Age 65: You pay premiums regularly (e.g., monthly, yearly) until age 65, and coverage also lasts until age 65.

Question 8

What is the Premium Loan Option?

Accepted Answer

If you can’t pay a premium, the company can use your policy’s Cash Value to cover it as a loan. If the Cash Value is too small, coverage may shorten.

Question 9

Can I borrow money from my policy?

Accepted Answer

Yes. Once your policy has a Cash Value, you can take a Policy Loan (up to the Cash Value amount). Interest will apply, and unpaid loans reduce the death benefit or can cancel the policy if the debt exceeds the Cash Value.

Question 10

What happens if I stop paying premiums?

Accepted Answer

If you miss a premium and don’t choose an option by the end of the grace period, the policy will automatically switch to Extended Term Insurance. This means your coverage continues for a limited time without further payments, but the amount or duration may be reduced.

Question 11

How does Extended Term Insurance work?

Question 12

What happens if my policy’s debt exceeds the Cash Value?

Question 13

What are my non-forfeiture options?

Question 14

When does the ART policy terminate?

Accepted Answer

The policy ends automatically if:
 • Premiums remain unpaid after the 31-day grace period.
 • You convert it to a permanent plan.
 • The insured reaches the termination date or age 60 (upon maturity).
 • The Policy Owner submits a written cancellation notice to the insurer before renewal.
Any valid claims before termination will still be paid.

Question 15

Can the policy renew automatically?

Accepted Answer

Yes, if you're under 60 and you don't cancel it in writing, Premiums are paid (including during the 31-day grace period) without a medical exam if:
 • You submit a written request to the insurance company
 • You do it on a policy anniversary date
 • The new coverage amount doesn't exceed your current policy
	*Your premium will be based on your current age at conversion.

Question 16

What happens after termination?

Accepted Answer

Coverage stops immediately.
 • No cash surrender value is paid
 • Valid death claims before termination are still paid
 • No refunds for unused premiums
* For exact dates and procedures, check your policy documents.

Question 17

Does this policy have cash value or dividend earnings?

Accepted Answer

No. This policy has no cash value. It is purely a term life insurance product. This is a non-participating policy, meaning it does not share in the company’s profits.

Question 18

Does this policy build up cash value?

Accepted Answer

No, this policy does not have any cash value. You can't borrow against it or get money by canceling it.

Question 19

What does my family get if I die?

Question 20

What if I miss a premium payment?

Question 21

Can I get my money back if I cancel?

Question 22

What are my Non-Forfeiture Options?

Accepted Answer

You have three choices if your policy has a cash value:
 • Option 1: Cash Surrender – Get the cash value (minus any loans).
 • Option 2: Reduced Paid-Up Insurance – Keep a smaller policy with no more premiums.
 • Option 3: Extended Term Insurance – Keep the same coverage for a limited time with no more payments.
If you don’t choose, Option 3 (Extended Term Insurance) applies automatically.

Question 23

How can I use the dividends I earn from this policy?

Accepted Answer

You have several choices for your annual dividends. You can:
 • Receive them as a cash payment.
 • Use them to help pay your premiums.
 • Leave them to grow with interest in an account.
 • Use them to buy additional small amounts of paid-up life insurance.
If you don't choose an option, the dividends will automatically be left to accumulate with interest.

Question 24

How does the interest on a policy loan work?

Accepted Answer

Interest will be charged at a rate approved by the Insurance Commission. The loan and interest are due on your next policy anniversary. If you don't pay it back, the total amount (loan + interest) will automatically become a new loan, and new interest will be charged.

Question 25

Will inflation affect the value of my policy benefits?

Accepted Answer

No. The policy clearly states that Article 1250 of the Philippine Civil Code, which deals with extraordinary inflation or deflation, does not apply. The value of all amounts and benefits is fixed in Philippine Pesos as stated in the policy.

Question 26

What is the Premium Loan Option?

Question 27

What benefits can I receive while I’m still alive?

Accepted Answer

You can receive 100% of the sum insured at the maturity period as a living benefit.

Question 28

What can I do with the cash value my policy builds up?

Accepted Answer

You have a few choices. You can:
 • Surrender it for cash (Net Surrender Value).
 • Use it to buy a smaller, fully paid-up policy that requires no more payments (Paid-Up Insurance).
 • Use it to keep your full coverage amount for a specific period without paying more premiums (Extended Term Insurance).

Question 29

Does this policy pay dividends?

Accepted Answer

Yes, this is a "participating" policy. You can choose to:
 • Receive the dividend as a cash payment.
 • Use it to help pay your premium.
 • Leave it to grow with interest in an account.
 • Use it to buy additional paid-up life insurance, which increases your total coverage.
If you don't choose an option, the dividend will automatically be left to accumulate with interest.

Question 30

What payment options do I have for this policy?

Accepted Answer

You can choose a five-year paying plan (First Star 5) or a ten-year paying plan (First Star 10), allowing you to match your premium payments with your budget and financial goals.

Question 31

What happens if I become totally and permanently disabled?

Accepted Answer

If you experience total and permanent disability, all future premiums are waived, so your coverage continues without any payment worries.

Question 32

How does the Premium Loan Option work?

Question 33

Where can I see what my specific cash values and benefits are?

Question 34

What benefits does this policy provide?

Accepted Answer

• Death Benefit: 100% of the Sum Insured (minus debts or prior claims) if the insured dies before the policy matures.
 • Critical Illness Benefits:
    • Major Diseases: 100% of the Sum Insured (minus debts or prior claims) for conditions like cancer or kidney failure.
    • Minor Diseases: 10% of the Sum Insured (minus debts) for early-stage illnesses like carcinoma-in-situ.
 • Maturity Benefit: 100% of the Sum Insured (minus debts or prior claims) if the insured reaches age 80.

Question 35

Are there any exclusions?

Accepted Answer

Yes. No benefits are paid for critical illnesses caused by:
 • HIV/AIDS (unless due to occupational exposure or blood transfusion).
 • Self-harm, suicide, or illegal acts.
 • War, terrorism, or nuclear accidents.
 • Drug/alcohol abuse or high-risk activities like professional sports.
 • Pre-existing conditions (illnesses diagnosed or treated before the policy started).

Question 36

What is a "Pre-Existing Condition"?

Accepted Answer

It’s any illness, injury, or symptom you had or should have known about before the policy began. These are not covered.

Question 37

What does this policy cover?

Accepted Answer

What does this policy cover?
 • Death benefit: 100% of coverage (minus loans/claims)
 • Early stage cancer: 40% of coverage (after 180 days)
 • Advanced cancer: 80% of coverage (after 90 days)
 • At age 75: 100% of coverage if still living

Question 38

When does coverage end?

Accepted Answer

It ends when:
 • You stop paying
 • Reach age 75
 • Get full payout
 • Cancel policy
 • Loans exceed cash value

Question 39

What's NOT covered?

Accepted Answer

No payouts for:
 • Pre-existing conditions
 • AIDS/HIV related illnesses
 • Pregnancy/childbirth issues
 • Congenital defects
 • War/terrorism injuries
 • Drug/alcohol related illnesses

Question 40

When do hospital benefits start?

Accepted Answer

• After 30 days waiting period (1 year for pre-existing conditions)
 • Must stay at least 3 days
 • ICU pays double (max 30 days/year)

Question 41

What hospital stays aren't covered?

Accepted Answer

No payment for:
 • First 30 days of policy
 • Pregnancy/dental/check-ups
 • Suicide/drugs/alcohol
 • War/terrorism
 • Cosmetic surgery

Question 42

How do I make a claim?

Accepted Answer

Submit within 90 days:
 • Policy documents
 • Hospital proof
 • Doctor's notes
	Company may ask for more tests

Question 43

How does the Cash Value work?

Accepted Answer

The Cash Value grows over time and can be used to take a loan, pay premiums, or surrender the policy for cash. The exact amounts are listed in the Table of Non-Forfeiture Values.

Question 44

When does this policy end?

Accepted Answer

It ends when:
 • You stop paying (after grace period)
 • You take all the cash value
 • Your loans exceed cash value
 • You reach age 87
 • Any valid claims before termination will still be paid.

Question 45

What happens if I reach age 87?

Accepted Answer

• At age 87: You get 100% of coverage amount (minus loans) if living
 • If you die: Your family gets 100% of coverage amount (minus loans)

Question 46

What is the Premium Loan Option?

Accepted Answer

If enabled, unpaid premiums will be paid automatically using a policy loan. If the Cash Value is too low, coverage may be reduced or shortened.

Question 47

What happens if my Cash Value runs out?

Accepted Answer

If the Cash Value drops below the cost of a quarterly premium, the policy will end after a short extension, and you’ll be notified in writing. For more details, review your policy documents or ask your First Life Builder

Question 48

What benefits does the policy pay out?

Accepted Answer

• Death benefit: 100% of the sum insured (minus loans) if the insured passes away before maturity.
 • Maturity benefit: 100% of the sum insured (minus loans) paid to you if the insured lives to the maturity date.
 • Pure Endowment bonuses: Extra payouts at the 10th, 15th, 20th, and 25th policy anniversaries if the insured is alive.

Question 49

What happens if I stop paying premiums?

Accepted Answer

If you miss a payment and don’t act by the grace period’s end, the policy automatically converts to Paid-Up Insurance (reduced coverage with no further premiums).

Question 50

What are my non-forfeiture options?

Accepted Answer

You can choose:
 • Cash surrender: Receive the net cash value (minus any loans).
 • Paid-Up Insurance: Keep a smaller death benefit with no more premiums.

Question 51

What does this policy pay?

Accepted Answer

• If you die before maturity: 100% of coverage (minus loans) to your family
 • At age 60: 100% of coverage (minus loans) to you if living

Question 52

How do I check my policy's value?

Accepted Answer

Your policy includes a table showing:
 • Current cash value
 • Reduced coverage amounts
 • How long extended coverage lasts

You can request updated numbers from first life insurance.

Question 53

Can I borrow money from my policy?

Accepted Answer

Yes! Once there's cash value, you can:
 • Borrow up to the cash value
 • Interest rate is set by Insurance Commission
 • Must repay by next policy anniversary (or it renews automatically)
 Policy ends if your loans exceed cash value

Question 54

What does the policy pay?

Accepted Answer

• If death occurs: Sum insured + dividends - loans
 • At maturity date: Sum insured + dividends - loans (if alive)
 • College benefits: Pays at ages 18-21 (amounts shown in policy)

Question 55

Can the company cancel my policy?

Accepted Answer

No, after 2 years the company can't cancel except for:
 • Non-payment
 • Fraud (by law)

Question 56

Can I change beneficiaries?

Accepted Answer

Yes, but:
 • "Revocable" beneficiaries: Can change anytime
 • "Irrevocable" beneficiaries: Need their consent

Question 57

How do college benefits work?

Accepted Answer

Starting at age 18, the policy pays:
 • Year 1 (age 18): 20% of coverage
 • Year 2 (age 19): 23% of coverage
 • Year 3 (age 20): 26% of coverage
 • Year 4 (age 21): 31% of coverage
	(minus any loans)

Question 58

What happens if I stop paying premiums?

Accepted Answer

• Take the cash - Get the surrender value (minus any loans)
 • Keep smaller coverage - Switch to reduced paid-up insurance (no more payments)
 • Keep full coverage temporarily - Get extended term insurance (automatic if you don't choose)

Question 59

When does coverage end?

Accepted Answer

It ends when:
 • You stop paying (after grace period)
 • Loans exceed cash value
 • College benefits are fully paid
 • Policy reaches maturity
 • Valid claims before termination will still be paid.

Question 60

What happens if I die or reach the maturity date?

Accepted Answer

• If you die: Beneficiary gets sum insured + paid-up additions + dividends - loans.
 • At maturity: You get sum insured + paid-up additions + dividends - loans (if alive).

Question 61

Do I get dividends? and what can I do with it?

Accepted Answer

Yes! If the company makes profits, you may get yearly dividends.

Choose to:
 • Take as cash
 • Pay premiums
 • Let them grow with interest (default if you don’t choose)
 • Buy extra insurance
Your choice only affects future dividends.

Question 62

Can I borrow against my policy?

Accepted Answer

Yes! Once there’s cash value, you can take a loan up to that amount.
 • Interest rate is set by the Insurance Commission.
 • Unpaid loans roll over yearly with new interest.
 • Policy ends if debt > cash value.

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Group Hospitalization Insurance

PRODUCT OVERVIEW

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Comprehensive coverage

Effortless medical access

Lower premiums

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