USAPANG DEATH BENEFIT: How Life Insurance Works Even in Death

Undas is fast approaching and most people talk about the dead but not about DEATH. Have you ever asked yourself if you’re prepared when unexpected demise comes? Worry not because the money generated by your life insurance policy can cover up the following when you go six feet under the ground.

1. Financial Constraint

One difficulty surviving families may encounter is financial constraint, especially if members who passed away are bread winners. The good news is, AFPMBAI life insurance plans entitle its members with benefits that provide financial assistance to beneficiaries that would help them get back on their feet, adjust to their new income level and find other sources of income.

2. Medical, Funeral Expenses and Debt

Apart from the emotional burden, families will also be left with financial burdens such as medical and funeral expenses and unpaid debt. Life insurance benefits may be used to cover immediate financial needs such as hospital bills, funeral expenses and even unpaid debt.

3. Estate Tax

Even after life, Bureau of Internal Revenue (BIR) won’t exclude you from paying taxes. When a member dies, his family will have to face the payment for estate tax.

As defined by BIR, “Estate Tax is a tax on the right of the deceased person to transmit his/her estate to his/her lawful heirs and beneficiaries at the time of death and on certain transfers, which are made by law as equivalent to testamentary disposition.” And normally, estate taxes are paid in cash, hence, benefits from the deceased member’s life insurance benefits shall supply the payment for it.

4. Pamana

Pamana or inheritance is a continuing tradition among tight-knit Filipino families. When the parents pass away, their children will inherit whatever assets they have left. However, poor estate planning often leads to rifts in the family.

Aside from estate planning one quick solution to this is Life Insurance. When the member passes away, benefits from his policy will go to his beneficiaries or heirs.  

AFPMBAI Basic Life Insurance plans provide members’ surviving beneficiaries with death benefits, which comprises the policy’s Face Amount and member’s Equity Fund with interest. At present, Equity Fund is credited with interest at 6% per annum.

While AFPMBAI has Permanent Insurance plans that provide coverage for members’ needs for savings, retirement, child’s education, supplementary insurance coverage for their liabilities/credits, and income replacement.

Members can also add riders like Accidental Death Benefit, which doubles the face amount if the member dies due to accident, and Payor’s Clause where all succeeding premiums of a child below 18 years old will be waived if the member-payor of the policy passes away. Other Permanent Insurance plans such as Saver’s Protection Plus (10-15) gives members double insurance coverage in case of death from the policy’s 6th to 15th year.

Another Permanent Insurance plan, E56 offers a burial benefit, in addition to the face amount. Aside from the burial benefit, E56 also has a built-in accidental death benefit rider.

Remember that when the time comes that a member meets death, all else will claim payments from his family, and only life insurance will give them financial security and support. And being true to its creed, “Maaasahan sa oras ng pangangailangan”, AFPMBAI will be there for its members and their families even during their grieving times.

For more information on AFPMBAI’s life insurance plans and other services you may contact (02) 911-4051 or visit our website at