Why VUL is better than BTID – Buy Term Invest the Difference

Recently, several of our financial advisors have encountered self professed financial gurus who are saying that buy term invest the difference is way better than VUL. We have been hearing a lot of misconceptions about VUL in the past but maybe now is the right time to answer the question: Which is the best way to get a life insurance via BTID or VUL?

To recap, VUL or Variable Universal Life is a term for a type of life insurance that combines investment and protection all in one. Meaning you do not have to go to two companies to get these benefits – less hassle in applying and monitoring. On the other hand, BTID or buy term invest the difference is a form of investing where you get the life insurance from another company and investment from another company. You then withdraw the money from the mutual fund to pay for the life insurance premiums every year.

One of our financial advisors sent a link of the website of Vince Rapisura as follows: https://vincerapisura.com/btid-vul-comparison-presentation/ and his video as follows: https://www.youtube.com/watch?v=N1fRUciAX5I that basically discourages people to get a VUL and instead go for BTID. So let us see if the allegations hold water in reality.

Let us dissect if the facts stated in those websites are really true. The Slide #1 below was taken from: https://vincerapisura.com/btid-vul-comparison-presentation/

The website states that to be insured for P1 Million pesos you only need to pay P3,550 per year at age 35 increasing every year until age 64 at P23,120. We don’t know which company Mr. Vince Rapisura got this quotation but let us assume that this is the case.

SLIDE #1

Let us assume that there are two people namely Vince and Rappi planning to be insured. Both individuals have P48,000 to give every year for insurance.

(1) Vince’s strategy is BTID: He bought a term insurance for P7.68M coverage at P27,264 premium at age 35 and increasing yearly up to P177,562 premium at age 64 (as stated below at column 6). Vince then invests the remaining balance from his P48,000 budget in a mutual fund which he will use in the future to withdraw the premiums to pay for the term insurance should the costs be more than P48,000 per year.

(2) Rappi’s strategy is VUL: He bought a VUL and paid P48,000 per year fixed until age 64 for a P7.68M coverage

 

 

We got a sample proposal for the VUL and here is the actual proposal for a P48,000 per year at P7.68M coverage:

In the table below, we see that after Year 1, the mutual fund of Vince is now at P22,395 (Column 5 Below) while VUL has no fund value yet. However at year 8, we see that the mutual fund of Vince is now at P191,513 (Column 5) while Rappi’s VUL fund is now at 207,906 (Column 6). This puts the VUL at an advantage than BTID moving forward.

 

Based on the table above you will see that from Year 1 to Year 7, BTID has more advantages than VUL (See Column 7). However, from Year 8 to Year 30 you will see that VUL has more benefits than BTID. In fact at age 65 the fund value of the VUL will be at P2,150,779. Meaning after paying P48,000 for 30 years you will be able to withdraw P1,882,979 from the fund value of the VUL.

 

VINCE’S DETAILED ANALYSIS OF TERM INSURANCE STRATEGY:

 

RAPPI’S DETAILED ANALYSIS OF VUL STRATEGY:

 

In Summary:

Vince who got a separate mutual fund and life insurance using BTID. Will withdraw the funds from mutual fund in the future to pay the life insurance premiums:

Total Coverage = P7.68M fixed + mutual fund value

Total Premiums Paid: P2,174,131

Fund Value after age 65: none in fact would have a debt or negative fund value of -P267,800

======

Rappi who got a VUL – life insurance + protection all in one. No need to withdraw the funds to pay for the life insurance premiums:

Total Coverage = P7.68M increasing every year

Total Premiums Paid: P1,440,000

Fund Value after age 65 (at 8% assumed return): P1,882,979

Total excess of fund value over premiums paid: P1,882,979-1,440,000 = P442,979

 

AND THE WINNER IS?

Well both sides have advantages and disadvantages. If the insured plans to be insured only for less than 8 years maybe BTID is the right thing to do. Although it is more inconvenient because you need to monitor two companies for your insurance and your investment.

However, if you plan to live until age 65 or more then VUL is the right choice to go.

 

What are the benefits of going for term insurance strategy?

  • Affordable Insurance Premium in the first 8 years (based on table above)

What are the disadvantages of term insurance strategy?

  • Increasing Insurance Premium
  • No fund value after 65 years
  • High probability that you will forget to withdraw from your mutual fund to pay your premiums
  • Termporary, limited Coverage (usually until 65 to 70 years old only)
  • No Estate Tax benefits on investment side

 

What are the benefits of going for VUL strategy?

  • Fixed premium payments every year
  • High fund value at age 65 = P1,882,979 (based on table above)
  • Convenience, no need to withdraw the premiums to every year from your mutual fund
  • May cover until age 100
  • Tax benefits on both life insurance and investment

What are the disadvantages of term insurance strategy?

  • Higher premiums on the first 7 to 8 years compared to term insurance

 

We sincerely hope that we have cleared the public of the misconceptions of VUL. My suggestion is to not automatically believe what you see in the internet. Always keep a balanced perspective on issues so that you can hear both sides. We understand the Mr. Vince Rapisura was speaking plainly on theory and not on practice. We suggest for clients to get in touch with an experienced practicing life insurance professional for for accurate analysis on life insurance questions.

One important thing to note when investing in VUL is that if you want more insurance, you will have lesser fund value. If you want more fund value you have to reduce your insurance. The key is to have a balance between insurance and fund value when it comes to VUL. Talk to a financial advisor to be able to know more about this.

If you have questions or cannot understand properly the information above, feel free to get in touch with us. We would be glad to explain.

Resources: Supporting Excel File Computation

How To Pass The Philippine Life Insurance Exam: Traditional and VUL Reviewer for Financial Advisors

Planning on becoming a financial advisor? Aspiring financial advisors and insurance agents need to pass the insurance exam administered by the Insurance Commission. Most people fear that they will not pass the insurance exam so we created this blog to help you increase your chances of passing the insurance exam for financial advisors.

 

Types of Examination

There are two types of examination that insurance agents need to take:
1. Traditional Examination – this examination is mainly about the following:

  • Definition of Life Insurance
  • Types of Insurance
  • Insurance Companies
  • Services of Life Insurance
  • Basic Life Insurance Terms
  • Plans & Riders
  • Underwriting
  • Policy Provisions
  • Quality Business
  • Code of Ethics

2. Variable Examination

  • Introduction to Investments
  • Risk and Rewards
  • Key Considerations Before Investing
  • Types of Investment Instruments
  • What is VUL
  • Single Premium VUL
  • Basic Transactions of VUL
  • VUL vs Traditional
  • Code of Ethics

 

First Things First

Initially, you have to select the right team to join first. It is important to choose the right team to join because it really does not matter which insurance company you join (Sunlife, PRU Life, Insular Life, Manulife, Philam Life, AXA, etc). Most of the insurance companies have similar and competitive products and you can succeed regardless of which company you choose to join, it is really about your individual performance not the insurance company’s performance.

What is most important is that you choose the right team, right mentor, the right colleagues and the right environment. This will insure that you will succeed in this career regardless of which Insurance Company’s product you are selling. You will notice that many successful advisors come from different companies. But, one thing is common: they all joined very good teams who have supportive mentors, leaders and colleagues.

The right team to join must have the following characteristics:

-competent leaders that you can be proud of
-great support system
-the team develops tools and processes that will help you grow

Because of the recent pandemic, we are adding this:
-the team is able adopting a strong digital strategy = meaning the team is investing in tools, websites, applications, strategies, trainings to help the agents thrive even in the new normal (aside from what the insurance company is providing)

 

Which one should I take? Traditional or Variable Exam?

Most likely you will be taking the Variable Exam first since most products now that are being sold in the Philippines are variable products or products whose returns are based on the stock market or bond market.

However, you can also take the traditional exam if you are into selling whole life, term insurance, group insurance products or health insurance products. In Insular Life we have a health care company called Insular Healthcare that sells HMOs and health cards. If you want to sell HMOs or Group Insurance, contact us so we can give you a brief orientation.

Group insurance products are insurance products that require at least 5 people to be sold and are cheaper than individual insurance. Think of it as a bundle program that is why it is cheaper. These products include benefits for employees upon death, disability, accident or sickness. These may also include a retirement program for employees that give guaranteed interest and not based on the stock market. There are only a very few insurance companies who are able to cater to group insurance. In my recollection I think only Insular Life, Phil-Am Life and Cocolife offer a complete range of group insurance products. Other companies say they offer group insurance but in reality they don’t. They just sell individual VUL retirement products to the employees. The disadvantage of this is that once the employee resigns, the VUL will also go to them and not go back to the company.

 

Non Life Insurance

If you are also planning to sell non life insurance such as property insurance, car insurance, cargo insurance and more… you may also get in touch with us. Insular Life has all products available for sale by its financial advisors:

  1. Life Insurance through Insular Life
  2. Group Insurance through Insular Life
  3. Health Insurance through Insular Healthcare
  4. Non Life Insurance through Mapfre Insular

 

Exam Preparations

Since we are sure of the exact details of what other teams are doing, for this blog we will discuss the preparations that we do in our team at Team Aetos.

The level of preparation you need will depend on the type of exam you are going to take. Most financial advisors take one exam first. Some financial advisors take both traditional and variable all together.

The Variable Exam is more technical investing and has computations.

The Traditional Exam is more on legal, insurance and ethics.

Both examinations are all multiple choice and a total of 50 questions to be completed in one hour.

To prepare for this exam, our financial advisors take the online video reviewers and take the mock exams in our team’s website. Each batch of mock exam below has 50 questions. There are 8 mock exam batches available in our website.

Watch The Traditional Exam Reviewer and Take Online Mock Exam Here

Watch The Variable Exam Reviewer and Take Online Mock Exam Here

 

Staying Positive

Most of the time you will feel scared that you will not pass the exam. Don’t be discouraged. Just keep on  praying, keep learning, keep studying. If you took the mock exam and passed it, most likely you will pass.

 

The Examination is Just the Start of Something Greater

Passing the examination may be a great accomplishment for you but the greater battle is in your actual performance. Most financial advisors even after getting good exam grades, do not even get to sell at least one insurance/investment. Others pass the exam yet do not even understand the concepts of insurance and investing because they only studied the multiple choice mock exam but did not really try to understand the concepts wholeheartedly.

For me, based on my experience as a financial advisor for more than 10 years now (since I was 21 years old) and having my own insurance agency, I was able to train different types of candidates. I noticed that those who succeed are not really those who are very good in the insurance exam but those who persist even when it seems difficult.

I wish you all the best in the insurance exam. I pray you will be successful as a financial advisor.

If you not yet sure if you want to become a financial advisor, just give it a try. Who knows this might be your calling in life.

The first step to becoming a financial advisor is to know if you are fit to become a financial advisor.

Next Step: Take This Quiz To Know If You Are Fit To Become A Financial Advisor

If you want to sell HMOs or Group Insurance, contact us so we can give you a brief orientation.

 

 

 

Our Aetos Advisor Awarded #1 Advisor Nationwide During Lockdown

Just recently during the online second of the year half kick off meeting of all financial advisors and leaders of Insular Life held June 9, 2020 we received a good news.

One of our financial advisors from Aetos FPH Pampanga Branch was awarded Top 1 Financial Advisor Nationwide in Terms of Policy Count from March 17 to May 31, 2020.

Financial Advisor Elmer Mallari was able to help 19 people during the height of the COVID lock down crisis.

 

Congratulations Elmer, you make us proud!

Congratulations as well to all the financial advisors of Team Aetos of Insular Life!

Our commitment to our financial advisors is that we will continue to develop digital tools and digital trainings that can help the financial advisors of Team Aetos become the best financial advisors in Insular Life.

The management of Aetos FPH have already committed to be the most Digital Team of Financial Advisor in the Philippines. Even before the lock down, Aetos has already started several digital initiatives and projects aimed to helping the advisors and clients of Aetos.[/vc_column_text][/vc_column][/vc_row]

DO YOU WANT TO EXPLORE THE CAREER OF BEING A FINANCIAL ADVISOR?

If you came to this website because you are considering to become a financial advisor, give it a try. Who knows this might be your calling in life.

The first step to becoming a financial advisor is to know if you are fit to become a financial advisor.

Next Step: Take This Quiz To Know If You Are Fit To Become A Financial Advisor

Insular Life has the highest commission rates for agents and managers? Here’s why we think so.

https://www.visionarch-architects.com/insular-life-corporate-center

We have been doing a little survey on the commission rates of financial advisors and we have come to a conclusion that Insular Life seems to be one of the most generous companies when it comes go giving commissions to its agents and managers. Here’s why we think so.

One of the probable reason is that the company is a proudly 100% Filipino company and all of the salaries it pays to its employees are probably based on Philippine standards because they don’t have employees who reside out of the country. Second probable reason would be that it is the only mutual benefit company in the Philippines. Meaning, it does not have any stockholders because the owners of Insular Life are its clients both externally and internally:employees and agents (who have a policy). Thus, it does not have to give dividends to private stockholders unlike stock corporations making Insular Life less prone to pressures from stockholders who want to make a lot of income per client in order to receive high dividends from the stock company. There could be other reasons but we will reserve that on our next blog.

Disclaimer: For those who dispute our claims, rates and statements in this blog please send us an email at admin@aetosfph.com for clarification.

 

So here’s why Insular Life has highest commission rates for agents and managers:

Scenario 1 Agent Income:

(Data Below Updated As of June 3, 2020)

Suppose the new agent recruit sold P20,000 per year Multiple Pay VUL plan (lifetime paying or limited premium holiday), this is how much the agent will earn:

Year1: P20,000 x 30% = P6,000 First Year Commission + 50% Quarterly Bonus (P3,000) + 10% Yearly Bonus (P600) = P9,600 Total Year 1 Earnings
*Being the Philippine’s only Mutual Non Stock Company: Insular Life is unique versus other companies because it provides a bonus of 50% to agents per quarter as well as a yearly bonus of 10% on top of the 30% commissions

Year 2: P20,000 x 20% = P4,000 Second Year Commission + 50% Persistency Bonus (P2,000) = P6,000 Total Year 2 Earnings
*As you can see, Insular Life provides a persistency bonus of 50% on the second year onwards. Other companies do not usually give bonuses on the second year onwards.

Year 3: P20,000 x 15% = P3,000 Third Year Commission + 50% Persistency Bonus (P1,500) = P4,500 Total Year 3 Earnings

Year 4: P20,000 x 10% = P2,000 Fourth Year Commission + 50% Persistency Bonus (P1,000) = P3,000 Total Year 4 Earnings

Total Earnings for the agent for this Plan is = P9600 + P6000 + P4500 + P3000 = P23,100

Scenario 1 Manager Income:

The unit manager on the other hand is entitled to 35% + 10% overrides or 45% First Year Commission Overrides plus 40% Overrides on all Renewal Commissions. The associate unit manager on the other hand earns 25% override income plus 20% Override on all Renewal Commissions. The unit manager and the AUM may also receive a 100% override on their own personal sale.

Thus on

Year 1: Agent First Year Commission P6,000 x 45% manager override rate = P2,700 override income of manager for training and taking care of the agent

Year 2: Agent Second Year Commission P4,000 x 40% manager renewal override rate = P1,600 override income of manager for year 2
*Another benefit of being a mutual non stock company is that Insular Life provides manager overrides on the second year onwards. Other companies only gives on the first year

Year 3: Agent Third Year Commission P3,000 x 40% manager renewal override rate = P1,200 override income of manager for year 3

Year 4: Agent Fourth Year Commission P2,000 x 40% manager renewal override rate = P800 override income of manager for year 4

Total override income of manager on sale of his agent = P2,700+ P1,600+ P1,200 + P800 = P6,300

Scenario 2 Agent Income:

Let’s say the agent sold another Multiple Pay VUL for P240,000 per year (lifetime paying or limited premium holiday) here is how much the agent will earn:

Year1: P240,000 x 45% = P108,000 First Year Commission + 50% Quarterly Bonus (P54,000) + 10% Yearly Bonus (P10,800) = P172,800 Total Year 1 Earnings
*Being the Philippine’s only Mutual Non Stock Company: Insular Life is unique versus other companies because it provides a bonus of 50% to agents per quarter as well as a yearly bonus of 10% on top of the 45% commissions

Year 2: P240,000 x 20% = P48,000 Second Year Commission + 50% Persistency Bonus (P24,000) = P72,000 Total Year 2 Earnings
*As you can see, Insular Life provides a persistency bonus of 50% on the second year onwards. Other companies do not usually give bonuses on the second year onwards.

Year 3: P240,000 x 5% = P12,000 Third Year Commission + 50% Persistency Bonus (P6,000) = P18,000 Total Year 3 Earnings

Year 4: P240,000 x 5% = P12,000 Fourth Year Commission + 50% Persistency Bonus (P6,000) = P18,000 Total Year 4 Earnings

Year 5: P240,000 x 5% = P12,000 Fifth Year Commission + 50% Persistency Bonus (P6,000) = P18,000 Total Year 5 Earnings

Total Earnings for the agent for this Plan is = P172,800 + P72,000 + P18,000 + P18,000 + P18,000 = P298,800

Scenario 2 Manager Income:

Unit Manager is still entitled to 45% Override thus:

Year 1: Agent First Year Commission P108,000 x 45% manager override rate = P48,600 override income of manager for training and taking care of the agent

Year 2: Agent Second Year Commission P48,000 x 40% manager renewal override rate = P19,200 override income of manager for year 2
*Another benefit of being a mutual non stock company is that Insular Life provides manager overrides on the second year onwards. Other companies only gives on the first year

Year 3: Agent Third Year Commission P12,000 x 40% manager renewal override rate = P4,800 override income of manager for year 3

Year 4: Agent Fourth Year Commission P12,000 x 40% manager renewal override rate = P4,800 override income of manager for year 4

Year 5: Agent Fifth Year Commission P12,000 x 40% manager renewal override rate = P4,800 override income of manager for year 5

Total override income of manager on sale of his agent = P48,600+ P19,200+ P4,800 + P4,800 + P4,800 = P82,200

 

Additional benefits on top of the benefits above:

*A new agent is given P17,250 as cash assistance to be able to purchase a laptop/mac/tablet for their presentation.

*Insular Life life insurance benefit of P3M, daily hospital allowance of P5,000, plus medical expense reimbursements, retirement benefits and more

*Aetos FPH also gives free health card from Insular Healthcare on top of the existing life and health benefits of Insular Life

*Also during calamities, Insular Life usually gives free cash assistance like during the COVID pandemic they gave free P8,000 per agent.

 

INLIFE ADVISOR CAN SELL OTHER PRODUCTS:

Further an InLife agent is the only agent that can offer all types of insurance products and thus increasing possible income:

  1. Health Card from Insular Health Care (Subsidiary of Insular Life) – Commission rate is as high at 15% every year
  2. Car, Property and other Non Life Insurance from Mapfre Insular (Subsidiary of Insular Life) – Commission rate is also competitively high
  3. Group Insurance – Sell an insurance policy with only one master policy for all employees which is much cheaper than individual plans. Insular Life also gives high commission rates for group insurance sales.

 

HIGH RISK HIGH RETURN JOB

It could be tempting to say that Insurance Agents are earnings so much. However, note that the life of an insurance agent is brought about by many rejections and frustrations. First we do not earn a fixed salary essentially making us no work no pay, it is just reasonable to earn more than regular employees or else there will be no reason for people to join this profession. Second, the commissions above are based both a lifetime paying plan and a limited pay plan. Thus if the client got a life time paying policy at age 43 and plans to continue paying until age 65. This means that the agent will need to assist clients and answer their questions for 22 years (65 yrs old – 43 yrs old).

In scenario 1 above the client needs to pay P20,000 per year x 22 years or a total of P440,000 premium until age 65.

However the commission received is only P23,100. Which means P23,100 / P440,000 = 5.25%. Meaning the company gave only 5.25% of the total amount paid by the client which is P440,000. This amount is considerably decent for sales people as real estate brokers earn around 5% per sale as well. The commission rates for insurance agents may look big on the onset but it entails a lot of responsibility to take care of the client until the client essentially dies where the agent will also help in the claims process.

So at the end of the day, being a financial advisor is like having a business. You have to have that entrepreneurial spirit. Indeed it is the highest paying hard work and the lowest paying easy work – and either way you choose your income.

 

CONCLUSION

As you can see Insular Life could be considered one of the most generous insurance companies in the Philippines because of the reasons I stated above.

Thanks for reading our blog. Get in touch if you have more questions or want to verify the commission rates above. Simply email admin@aetosfph.com or text 0905-FINANCE or 0905-3462623.

EXPLORE THE CAREER OF A FINANCIAL ADVISOR!

If you are considering to become a financial advisor, give it a try. Who knows this might be your calling in life.

The first step to becoming a financial advisor is to know if you are fit to become a financial advisor.

Next Step: Take This Quiz To Know If You Are Fit To Become A Financial Advisor

Qualifications and Requirements to become Financial Advisor and Insurance Agent

For the purposes of this discussion we will show the requirements for financial advisors and insurance agents here in the Philippines. Since the income of financial advisors here in the Philippines requires that you sell financial products like insurance and investments and earn through commissions, financial advisors require both IQ and EQ.

In the Philippines, financial advisors are not paid consultancy fees for their financial advise. The market for individuals who pay consultancy fees for financial advise in the Philippines is very small. Most Filipinos still prefer to get free financial advise and so Filipinos usually prefer commission based financial advisors.

So here are the requirements for financial advisors in the Philippines:

LEGAL REQUIREMENTS:

  1. Must be at least 18 years old
  2. Must have taken the trainings and exam from the Insurance Company of their choice. We at Team Aetos are affiliated with Insular Life because it is a great Filipino Company and we love Filipino brands.
  3. Must pass the insurance exam by the Insurance Commission

EDUCATION REQUIREMENTS:

As you can see, the requirements do not require you to be a business/finance graduate or even be a college graduate at all.

CHARACTER AND PERSONALITY REQUIREMENTS:

The list below is an acronym of AETOS because these are the qualities we are looking for financial advisors who join our team. Remember this job is both a sales job and consultancy job all in one. Meaning, you find what your clients needs and wants and then sell the product to them. Therefore we want applicants who are achievers, enthusiastic, trustworthy, outstanding and smart.

These are the characteristics of financial advisors we are looking for in Team Aetos:

 

If you are considering to become a financial advisor, give it a try. Who knows this might be your calling in life.

The first step to becoming a financial advisor is to know if you are fit to become a financial advisor.

Next Step: Take This Quiz To Know If You Are Fit To Become A Financial Advisor

 

 

Top Life Insurance Companies in the Philippines (year ending 2018 or 2019 ranking)

Based on the latest data by the insurance commission here are the top Life Insurance Companies in the Philippines for year ending 2018 which is the basis for the 2019 ranking.

The Ranking of the Top Life Insurance Companies in the Philippines is based on Net Worth. There are many ways to rank insurance companies as follows:

 

  1. Premium Income and New Business Annualized Premium Equivalent – Not very reliable because it is based on Gross Sales and does not include expenses used to generate the sales. Some companies report high sales but very high expenses. Further, some companies report very high gross sales this year and next year low gross sales.
  2. Asset Ranking – Not also very reliable because it is based on Gross Assets (cash, property, investments, etc.) but there are some companies which have high Assets but also very high Liabilities.
  3. Paid Up Capital Ranking – This is based on the amount that the shareholders gave to put up or start the company. This is a useful measure because this amount does not usually increase every year because it is based on the amount the shareholders gave to start the company’s operations.
  4. Net Worth Ranking – This is the most reliable measure of an insurance company. This is because it is based on (Assets less Liabilities) + (Sales – Expenses). Meaning this amount is based on how much will be left if the company sold everything it owns and paid all its liabilities. Further, this also increases every year if the net income is growing every year. This also declines every year if there is a net loss every year.

Because of this we decided to use Net Worth as the basis for Ranking Life Insurance Companies and not gross sales, gross assets or paid up capital.

The top Life Insurance Companies in the Philippines based on Net Worth (Assets Less Liabilities) as of December 2018 are as follows: Phil-Am Life, Insular Life, Sunlife, Manulife, Cocolife, Axa Life, BDO Life, BPI Phil-AM, PRU Life (U.K.) and Sunlife Grepa. These information can be verified in the official website of the insurance commission here: https://www.insurance.gov.ph/statistics/life/

We shall post the update once there are new data available from the website of the Insurance Commission.

 

 

Other things you might want to read:

How to join an online career orientation to explore the career of being a financial advisor?

Top Life Insurance Companies in the Philippines

How much do financial advisors earn?

Step by step process on becoming a financial advisor

What are the duties and responsibilities of a financial advisor?

What are the qualifications and requirements to be a financial advisor?

Top 5 reasons why you should consider becoming a financial advisor

Am I fit to become a financial advisor?

Who is Team Aetos and why should I join their team to be a financial advisor?

What is the job description of a financial advisor and the duties and responsibilities?

Recently, we have been asked frequently what does a financial advisor do?

So here is our quick answer:


  1. PROSPECTING – List down friends, family, relatives and colleagues who need investments, life insurance, health card, car insurance and more.
  2. SETTING APPOINTMENT – Contact your ​prospective clients for a meeting preferably online (due to COVID 19) or visit their office, residence or meet them in a coffee shop.
  3. BUILDING RAPPORT – Take time to know your client. Where does he work, is he married, how many kids, what was the reason for meeting with you.
  4. NEEDS ANALYSIS – Identify the needs and wants of the client. Encourage the client to open up so you can be able to pinpoint areas where he needs your help.
  5. SOLUTION PRESENTATION – Present a financial product that solves the needs of the client – is it life insurance, is it a savings program, is it a health insurance, a retirement program, etc.
  6. ANNUAL REVIEWS – Regularly provide continuous after sales service in order to get new client referrals and repeat business. This is the best way to have a long and fruitful career as a financial advisor.

If you are considering to become a financial advisor, give it a try. Who knows this might be your calling in life.

The first step to becoming a financial advisor is to know if you are fit to become a financial advisor.

Next Step: Take This Quiz To Know If You Are Fit To Become A Financial Advisor

Step by Step Guide on Becoming A Financial And Insurance Advisor

Being a financial advisor is no easy task. It is a career that can be sometimes looked down upon by some people as merely a sales job. Sometimes this job causes you to be rejected among friends.

However, this job is also one of the highest paying jobs. Further, financial advisors now are very investment savvy and know a lot of stocks, bonds and more. Clearly being a financial advisor now is more than just selling.

If you want to become a financial advisor follow the following steps:

1. Select an financial advisor team that you would like to join.

In choosing the right group to join, consider the following:
-competent leaders that you can be proud of
-great support system
-the team develops tools and processes that will help you grow
-the team is able adopting a strong digital strategy = meaning the team is investing in tools, websites, applications, strategies, trainings to help the agents thrive even in the new normal (aside from what the insurance company is providing)

2. Contact the team and schedule an orientation

Don’t worry these orientations usually require no commitment to join, just mention that you are exploring the career.

3. Start reviewing for the licensure exam for financial advisors.

Most teams have monthly classes for the review. In our team, we have online exam reviews as well as face to face classroom reviews. To check our online reviewer visit our eUniversity here. Those who take our eUniversity online review and coaching sessions usually pass the licensure exam with good grades. Don’t worry it is not as hard as it looks.

4. While reviewing, start preparing for the documentary requirements for the licensure exam.

These are simple requirements like preparing your ID pictures, Proof of SSS Number and TIN number.

5. Take the examination​ of the Insurance Commission. This is usually done during the weekend. Examination is just a multiple choice and it is not as hard as it looks.

6. If you pass the exam, ask your team leader on the next steps. Join the trainings of the company and the trainings of your team.

7. To fast track your growth, do online trainings while waiting for the classroom trainings.

If you are considering to become a financial advisor, give it a try. Who knows this might be your calling in life.

The first step to becoming a financial advisor is to know if you are fit to become a financial advisor.

Next Step: Take This Quiz To Know If You Are Fit To Become A Financial Advisor

Aetos awarded Top 1 Agency in Insular Life During ECQ

Just recently during the Town Hall Meeting of Insular Life held May 15, 2020 we received news that Aetos FPH Insurance Agency has been awarded as the Top 1 Agency Nationwide in terms of number of policies sold during the ECQ period.

This is a very welcome award as a lot of Aetos Financial Advisors have been tirelessly seeking out people to help insure against death, sickness and even increase their retirement and investment programs especially when the stock market is down. This award greatly motivates the existing financial advisors and leaders who continually seek to help people be financially secured during the COVID pandemic.

Once again, congratulations to Aetos FPH for being the Top 1 InLife team in terms of individuals helped this ECQ, Nationwide!

Congratulations to our advisors who tirelessly encourage clients to be financially healthy this ECQ.

Congratulations to our mentors who continually encourage and help the advisors persist and succeed.

Congratulations to our career coaches for the continuous zoom meetings.

Congratulations to our back office support staff who though not seen, continually make our operations smooth and ready for the future that lies ahead.

AETOS FPH – NUMBER ONE AGENCY IN INSULAR LIFE!

Only P13/day – New Emergency Health Card (HMO) for Virus, Bacteria, Accident with Life Insurance by InLife

What if you get hospitalized due to a virus, or bacteria or accident? What if suddenly something happens to you?

These are some of the questions that most people ask especially now that there are many illnesses and viruses lurking around us.

Thus, Insular Life true to it’s mission of helping people by providing quality and affordable health insurance benefits created I-Shield All In-Plan.

The benefits of this product are:
1. It is a one year commitment plan meaning if you do not like to renew next year, you don’t have to renew
2. It is very affordable for as low as P4,750 per year or P13 pesos for day for the lowest plan

With the I-Shield All In-Plan you get the following benefits:

  1. Death Benefit for your family if you die
  2. Daily Hospital Allowance for every day you are hospitalized
  3. Amputation Benefits for each limb (arms, legs, eyes)
  4. Emergency Hospitalization Benefit up to P100,000 (one time use per year)

Here are the complete details of the plan:

1. What does EMERGENCY HOSPITALIZATION portion of I-Shield All In Plan cover?
With a Php 100,000 benefit limit, I-Shield All In Plan covers emergency cases due to accidents and viral and bacterial illnesses. It covers expenses on outpatient and inpatient emergency care, room and board, diagnostic procedures as medically necessary during confinement, medicines as medically necessary during confinement, use of operating room, recovery room, and ICU diagnostic procedures, as medically necessary.

2. What are considered emergency cases and accidents? 
An emergency case is a sudden, unexpected onset of illness or injury having the potential of causing immediate disability or death, or requires the immediate alleviation of severe pain and discomfort. 

Accident means a visible, external, sudden and violent event occasioned by a physical or natural cause and occurring entirely beyond the Members’ control causing damage to the health of the Member. 

I-Shield All In Plan covers accidents that include, but are not limited to:
     ● Accidents, excluding Cerebrovascular (Stroke) 
     ● Fracture, new
     ● Burns, new
     ● New animal bites, including first dose of vaccines 
     ● Cuts, new, needing suturing
     ● Sports injuries, contact and noncontact sports, excluding professional sports and high-risk sports
     ● Accidental chemical poisoning 

I-Shield All In Plan covers diseases that include, but are not limited to:
     ● Acute Bronchitis 
     ● Acute gastroenteritis with dehydration
     ● Acute tonsillopharyngitis with moderate dehydration
     ● Acute Sinusitis
     ● Acute tonsillopharyngitis 
     ● Acute Upper Respiratory Tract Infection
     ● Amoebiasis
     ● Cellulitis
     ● Dengue Fever
     ● Acute Pneumonia
     ● Typhoid Fever
     ● Urinary Tract Infection
     ● SVI (systemic viral infection) with fever
     ● Measles with high-grade fever
     ● Chicken pox with complications
     ● Leptospirosis
     ● Polio
     ● Cholera
     ● Diphtheria
     ● Pertussis
     ● Tetanus
     ● Rabies
     ● Meningitis
     ● Chikungunya
     ● Malaria
     ● Anaphylactic Shock
     ● Acute Appendicitis
     ● Acute Gastritis

A Member’s eligibility to emergency care benefits under the Plan Agreement shall be based on the final medical diagnosis.

3. Who is qualified for I-Shield All In Plan?
Adults, 18 to 60 years old, can get I-Shield All In Plan and register as a Member.

4. When can I start using I-Shield All In Plan?
From the day you register (“registration date”), the health voucher will be activated after ten (10) calendar days. Your health voucher is valid for 12 months or up until used which ever comes first.

Example: Registration date is Day 0. If you register on August 1, your health voucher will be activated on August 12. It will then be valid from August 12, 2018 to August 11, 2019 or up until used which ever comes first.

5. What are the special modalities covered by I-Shield All In Plan?
Special Modalities as medically needed subject to Php 5,000 sublimit:
     ● Laparoscopic procedures 
     ● Magnetic Resonance Angiography
     ● Magnetic Resonance Imaging (MRI)
     ● Computerized Tomography (CT) Scans
     ● Endoscopic Procedures (Therapeutic)
     ● Pain Management
     ● Arthroscopic Procedures, Orthopedic Arthroscopy
     ● Other medically necessary modalities not mentioned above and those for which there are no comparable, conventional or traditional counterparts

6. Is PhilHealth coverage needed to I-Shield All In Plan?
Yes. Once there is an admission, PhilHealth coverage is required since it also covers inpatient care. However, for those who do not have PhilHealth coverage, one may just pay the PhilHealth portion of the hospital bill before discharge.

7. If I already have an existing Insular Health Care plan with emergency care benefits, can I still register for I-Shield All In Plan?
No. You cannot register for I-Shield All In Plan if you are already enrolled in IHC’s other health care programs with emergency care coverage, even if your total benefit limit has already been consumed.

8. Can I transfer I-Shield All In Plan to another person? 
No. The insured must be the same person for the 12 month period.

9. I-Shield All In Plan in hospitals not on the health voucher’s provider list? 
No. Services can only be availed in IHC-accredited hospitals and clinics. 

10. What conditions are not covered by I-Shield All In Plan?
Non-emergency and pre-existing conditions, congenital and maternity-related conditions, and other conditions under IHC’s General Exclusions list are not covered by this product.

An illness or condition is considered pre-existing if, prior to effective date of coverage:
     (a) Any professional advice or treatment was given for such illness or condition;
     (b) Such illness or condition was in any way already known to the Member; or
     (c) The pathogenesis of such illness or condition had already started (of which the Member may not be aware of).

Non-coverable accidents include, but are not limited to: self-inflicted injuries; injuries from professional sports and high-risk sports; injuries or illnesses due to military, paramilitary, or police service; injuries from high risk activities or suffered under conditions of war; and accidents that are secondary to or contracted due to degenerative diseases such as Alzheimer’s Disease and Parkinson’s Disease.

This Insurance Plan is brought to you by Insular Life, the Top 2 Life Insurance Company in the Philippines in Terms of Net Worth.

For more information, talk to your Aetos Financial Advisor by chatting us by clicking here.