SIBOL Primer - PhilLife Financial

Product Highlight Sheet
The Product Highlight Sheet is a summary of key information of the financial product which will
be material to your proper understanding of the product, its features and risks.
1. Q: What are you investing in?
A: You are embarking on long-term investing. You embark on it to fund your own retirement,
build a house, and perhaps to fund the education of your loved ones. Investing is really
about planning and doing things early, starting now! Planning is the beginning of putting an
effective investment plan in place.
PhilLife Financial (PhilLife) offers you a financial product to suit your financial needs and
goals, while providing you with life insurance protection in case of untimely death.
1.1 Q: What is variable life insurance?
A: Variable life insurance is an innovation in life insurance that allows you to invest the
premium in stock, bond, or money market portfolios. It is variable because cash values and
death benefits will rise if the underlying investments do well and will fall if the investments
drop in value. Investors can elect to move from one portfolio to another or rely on the
company’s professional money managers to make such decision for them. The investment
rewards (and risks) are transferred from the insurer to the policyholder.
1.2 Q: How different is variable life insurance from traditional life insurance?
A: Variable life is unbundled, transparent, and linked to variable life funds.
Variable insurance is an unbundled product. Unbundling means the separate identification of
the constituent parts of the insurance policy. That is, the investment element, expense, and
administration charges, and benefit charges, as well as the benefit themselves, are clearly
identified to the client.
Variable insurance is a transparent product. The policyholder can see the progress of the
policy. This is aided by an annual report, sent to the policyholder, on the performance of the
policy including the explicit reporting of charges taken from, and investment returns allocated
to, the policy.
Variable insurance is linked to variable life funds. Variable life funds are separate accounts
comprised of various instruments and investment funds within PhilLife’s portfolio such stocks,
bonds, equity funds, money market funds and bond funds. 2. Q: How can I start investing through a variable life insurance program?
A: Build an investment program. Start small, but be consistent. Challenge yourself to put
money into variable life funds.
If you think you can’t find a large amount of money to invest, you start out by saving P100
per day. Take just P100 per day (cost of a decent cup of coffee), invest, and reinvest it in
a fund over 365 days at a 5% return. In 1 year, this fund would be worth P37,430.40; in 5
years, P207,350.91; in 10 years, P473,590.18; in 15 years, P815,442.32. And in 20 years,
this account would be worth P1,254,381.65.
2.1 Q: What are PhilLife’s variable life funds?
A: PhilLife offers SIBOL (Single Premium Investment Benefit Opportunity for Life), a single
premium variable life insurance product. As a policyholder/investor, you may choose from
three (3) funds. PhilLife follows single forward pricing.
2.2 Q: How is the value of a fund computed?
A: The value of the fund, or Net Asset Value (NAV), is calculated by taking the closing
market value of all securities plus all other assets such as cash, and subtracting all the
liabilities. The NAV is not a fixed figure because it must reflect the change of price of the
securities within the fund’s portfolio. It shall be available to the Policy Owner under normal
circumstances and shall not be less than once a month.
2.2.1 Q: How is the unit price computed?
A: The unit price is computed by dividing NAV by the total number of units outstanding.
The number of units outstanding can vary depending on the number of Top-ups (or
subscriptions) and Withdrawals (or redemptions).
Fund 1, Balanced Fund: Strategic mix of stocks, bonds and
money market securities
Investment Policy
Objectives
The Fund will be invested on bonds issued
by the Philippine government and equities
issued by top Philippine corporations listed in
the Philippine Stock Exchange.
To achieve the highest total return over
time consistent with an emphasis on both
capital growth and income. The fund pursues
this objective by investing in a diversified
portfolio of stocks, bonds, and money market
securities.
Fund 2, Equity Fund: Investment in stocks
Investment Policy
Objectives
The Fund will be invested in equity securities
issued by Philippine companies that are listed
in the Philippine Stock Exchange, primarily on
shares of stocks for companies that compose
the PSE Index.
To achieve long-term capital growth
through investments in diversified sectors
of companies listed in the Philippine Stock
Exchange. The Fund aims to track the
performance of the PSE Index.
Fund 3, Opportunity Fund: Stocks investment that provides access
to a variety of industry sectors
Investment Policy
Objectives
The Fund will be invested in companies
listed on the PSE based on long term capital
growth through capital gains and dividends.
Investment in stocks will be those included
in the PSE Index and in companies that are
non-listed but with at least a 3-year dividend
paying track record.
The Fund is designed to seek absolute
returns through long-term capital appreciation
through investment in listed and non-listed
equity securities of Philippine companies and
is classified as a high risk investment.
3. Q: Is there a limit to investing?
A: Yes. The limit is your future needs.
Determine your financial and personal needs and time frames. The most important thing is to
match your investment program to your own personality and implement a clear plan. Define
them in writing. Your PhilLife Financial Advisor can be of great help to you.
4. Q: Who are you investing with?
A: You are investing with PhilLife Financial, a provider of variable life insurance funds.
PhilLife belongs to the respected Tanco Group of Companies, whose companies include
Philippines First Insurance Co. Inc. (PhilFirst), the first Filipino domestic non-life insurance
company; PhilPlans, a leading financial solutions company providing pension, education,
and memorial programs; and PhilCare, both a pioneer and leader among HMO providers in
the Philippines.
Other companies affiliated with PhilLife are STI, one of the largest network of schools in the
country; iACADEMY, which offers holistic education that meet the demands of the global
market; West Negros University, a major university in Bacolod, and communications and
marketing firm Comm&Sense, Inc.
4.1 Q: Who will manage the funds?
A: PhilLife Financial engaged the services of Metrobank Trust Company-Trust
Banking Group (MBTC-TBG) to manage its funds.
Metrobank is a premier universal bank and among the foremost financial institutions
in the Philippines. It offers a full range of banking and other financial products and
services, including corporate, commercial and consumer banking, as well as credit
card, remittances, leasing, investment banking and trust banking.
The core strength of Metrobank lies in portfolio management. PhilLife Financial stands
to benefit from the wealth of experience of its seasoned Investment Management Team.
Timely access to critical market information coupled with the dynamic infrastructure of
Metrobank has enabled it to stay ahead of its benchmarks regardless of the market
scenario.
5. Q: What are the key risks of this investment?
A: Now that you have evaluated your own risk tolerance, it is important to understand exactly
what the investment risks are. Once you understand what the different investment risks
are, you will be better prepared to make more informed investing decisions, put together
an investment portfolio that includes various asset classes, and manage your investments.
There are numerous types of investment risks: the most common include inflation risk,
interest rate risk, market risk, economic risk, and company- or industry specific risk.
Inflation Risk is the threat that your investment reutrns will not keep pace with the rate of
inflation. For example, if inflation increases each year by 3 percent, but your investmenets
are growing only by 1 percent, your are losing money. This will reduce your purchasing
power and effectively reduce your real rate of return on your invesments, net of inflation.
In order for your portfolio to have a reasonable chance of beating inflation, it should include
growth oriented stocks, growth and income stock mutual funds, and other growth-related
investment vehicles. These types of investments have historically outpaced the rate of
inflation over the long term, although there is no guarantee that they will do so in the future.
Interest Rate Risk is typically associated with bonds and other fixed-income investment
vehicles, which tend to be sensitive to changes in interest rates. When interest rates rise,
the value of these investments falls. Of course, the opposite is true as well: As interest
rates drop in our economy, the value of these investments increase. One way to protect
against interest rate risk when you believe interest rates will be rising is to shorten the
duration of your bond holdings (closer to maturity dates).
Market Rate Risk is the risk of when the overall market experiences a decline. It
typically drags down the value of all securities at the same time. Market rate risk is a
result of the aggregate movement in the market and may not relate specifically to your
investments. Market risk can affect almost any type of investments: including stocks,
bonds, commodities, real estate, and many others.
Economic Risk occurs when the overall economy experiences a downturn, such as
when a recession occurs. These economic downturns can result in a decrease in earning
and profits from the underlying companies you may be invested in. This can diminish a
company’s ability to pay a dividend or even the interest on its bonds. It is important to note
that certain companies and industries may be more sensitive to economic changes than
others. For example, companies that produce luxury item will be much mode sensitied to
economic downturns than companies that produce necessities.
Company- or Industry-specific Risk occurs when an event affects only a specific
company or industry—for example, if accounting irregularities are discovered during a
particular company’s financial statement audit, the value of investment in that company
is likely to decrease. These types of events can have a significant effect on a company’s
value as well as the confidence investors can place with its management. By far, this is
the strongest reason for a well-diversified portfolio and why you should never keep all your
eggs in one basket.
6. Q: What are the charges for this investment?
A: The charges for this investment are the following:
Premium Charge. Premium charge is an initial charge levied upfront upon the single
premium before allocation of the balance to the underlying investment fund. This charge
shall also apply to top-up premiums.
Insurance Charge. Insurance charge is used to cover the Policy’s death benefit in the event
the Life Insured dies. Likewise, insurance charge shall apply to each top-up premium at
each time such transaction is made.
Policy Charge. The Policy Charge is a one-time charge against the single premium at
approval of the Application for Variable Life Insurance.
Fund Management Charge. Fund management charge shall be applied for managing the
investment fund. It is imposed by the Company and deducted from the investment fund. It
may vary according to category of the fund, underlying investments, and fund objectives
described in the Illustration.
Surrender Charge. A surrender charge shall be applied to partial or full withdrawal of
account value. It shall be deducted from the withdrawal value and will be based on the
amount withdrawn. There is a surrender charge of 5% of the withdrawal value in the first year,
4% in the second year, 3% in the third year, 2% in the fourth year, and 1% in the fifth year.
7. Q: How often are the valuations available?
A: Placing a value or worth to a fund will be done once a week. The NAVPU shall be
published in one or more newspapers of national circulation at least weekly. The said
publication shall state the name of the fund, its general classification, the fund’s NAVPU, and
the moving return on investment (ROI) of the fund on a year-to-date (YTD) and a year-onyear (YOY) basis.
PhilLife will make available the historical NAVPU, disclosure documents, and other pertinent
information about the fund via its website.
8. Q: What are the cut-off times for Top-ups and withdrawals?
A: Requests for Top-up received by PhilLife by <time o’clock AM/PM> on a business day will
be processed at the unit price determined at the close of business of <day> day. Confirmation
letter will be sent to you within <days>.
Requests for withdrawal received by PhilLife by <time o’clock AM/PM> on a business day
will be processed at the unit price determined at the close of business of <day> day. The
proceeds will be sent to you within <days>.
9. Q: How can you exit from this investment and what are the risks and costs of doing so?
A: You may exit by surrendering your policy to PhilLife. This transaction will be treated as a
full redemption of units under the policy.
All withdrawals, partial or full, will be subject to fees based on the Schedule of Charges
shown in the Policy. The payment of the withdrawal value shall be further subject to the
administrative rules of the Company. The withdrawal value of the policy is the account value
less any surrender charge.
10. Q: What is Guaranteed Insurability?
A: Guaranteed Insurability is a program designed to provide insurance protection, with no
medical examination required, subject to certain issue limits and underwriting guidelines of
the Company.
PhilLife’s SIBOL is offered under Guaranteed Insurability subject to limits set by the
Company and age eligibility requirements at the time of the issuance of the Variable Life
Insurance Policy or approval of the request for Top-up.
Guaranteed Insurability does not mean guaranteed approval of the Application for Variable
Life Insurance. This application may be declined for underwriting reasons such as but not
limited to the following:
1) The Proposed Life Insured has exceeded the Guaranteed Insurability limits set by the
Company,
2) The proposed Life Insured has not submitted the complete Anti- Money Laundering Act
(AMLA) requirements,
3) The Proposed Life Insured has not provided complete information in this application
form,
4) The health declaration is not acceptable according to the Company’s underwriting
guidelines, and
5) The Proposed Life Insured has previous application with PhilLife Financial which was
deferred, postponed OR declined through regular underwriting, regardless of reason.
10.1 Q: What are the death benefits under Guaranteed Insurability?
A: (1) Where the death of the Life Insured occurs within the first two (2) years from
the Policy Effective Date:
a) If the death is the result of an injury, and death occurred within one
hundred eighty (180) days after the date of injury, the Death Benefit as
provided in this Policy shall be given.
b) If death is due to causes other than an injury, the Company will pay
the Account Value including Premium Charge and Insurance Charge,
subject to a maximum amount equal to the Minimum Death Benefit as
defined in this Policy, notwithstanding any provisions of this Policy to the
contrary.
(2) Where the death of the Life Insured occurs after two (2) years from the Policy
Effective Date but prior to the Expiry Date and where no Top-up Premiums
have been paid, the Company will pay the Death Benefit as stated in this
Policy.
(3) Where the death of the Life Insured occurs after two (2) years from the Policy
Effective Date but prior to the Expiry Date and where Top-up Premiums have
been paid, the Death Benefit under this Policy shall be as follows:
a) If the death is the result of an injury, and death occurred within one
hundred eighty (180) days after the date of injury, the Death Benefit as
provided in this Policy contract shall be given.
b) If the death is due to causes other than an injury, the Company will
pay the Death Benefit as stated in this Policy less any increase from
Top-up premiums paid within two (2) years before the date of death.
The Account Value including Premium Charge and Insurance Charge
thereof corresponding to all excluded Top-ups shall be refunded. The
total Death Benefit payable shall be subject to a maximum amount equal
to the Minimum Death Benefit as defined in this Policy, notwithstanding
any provisions of this Policy to the contrary.
10.2 Q: What is Injury under this Guaranteed Insurability means?
A: It means accidental bodily injury which is:
a) sustained while this Policy is in force;
b) caused solely by external, violent and accidental means;
c) produces a visible contusion or wound on the exterior of the body (except in
case of drowning or internal injury revealed by an autopsy);
d) not due to suicide (except if committed in the state of insanity, which under Batas
Pambansa Blg. 874, is compensable regardless of the date of commission),
murder or provoked assault; and
e) not due to sickness, disease, infirmity or physical condition existing at the time
of the accidental injury.
11. Q: How can you contact us?
A: For other information you would like to know before you invest, you may visit the PhilLife
website at www.Phillife.com.ph. For a personal discussion, you may contact PhilLife Customer
Hub at 7985433 local 362 or 363 to set an appointment with a PhilLife Financial Advisor.
Disclosure: Returns cannot be guaranteed and principal amount invested is exposed to
risk of loss. Historical returns and NAVPU are for illustration of movements of returns
and NAVPU. When redeeming, the proceeds may be worth less than the principal
amount invested. Any losses will be solely for the account of the client. The company is
not liable for any loss unless upon willful default, bad faith or gross negligence.
This product cannot be sold to you unless its benefits and risks have been thoroughly
explained. If you do not fully understand this product, do not purchase or invest in it.
About PhilLife
PhilLife Financial’s expansion continues to grow far and wide as it now belongs to the respected
Tanco Group of Companies, whose companies continue to shape the lives of millions of Filipinos.
These companies include Philippines First Insurance Co. Inc. (PhilFirst), which is the first Filipino
domestic non-life insurance company established in 1906; PhilPlans, one of the leading financial
solutions companies providing pension, education, and memorial programs; and PhilCare, both a
pioneer and leader among health maintenance organization (HMO) providers in the Philippines.
Other companies affiliated with PhilLife are premiere educational institutions such as STI, one
of the largest network of schools in the country; iACADEMY, which offers holistic education that
meet the demands of the global market; West Negros University, a major university in Bacolod,
and communications and marketing firm Comm & Sense, Inc.
Today, PhilLife Financial is set to take a more pronounced role in a business that kept it going—
and growing—for generations. Its new vision takes full stock of the brand of confidence its clients
bestowed upon the company: To be the premiere and trusted partner of Filipinos for their financial
needs.
Corporate Headquarters
GF, 8F – Penthouse
iACADEMY Plaza
324 Sen. Gil Puyat Ave.
Makati City 1227
Tel. No. (+632) 798-LIFE (5433)
REGIONAL OFFICES
DAVAO REGIONAL OFFICE
Door 10 G/F & Rooms 203 & 204
Plaza de Luisa Building B.,
Ramon Magsaysay Ave., Davao City
Tel. Nos. (082) 224-2144 / (082) 222-1856
(082) 221-8285 / (082) 224-0549
Fax Nos. (082) 224-2143 (G/F) /
(082) 224-0548
CAGAYAN DE ORO REGIONAL OFFICE
2nd Floor., Grace Building,
A. Luna Street, Cagayan de Oro
Tel. No. (088) 880-1009
Telefax No. (08822) 728572
CEBU REGIONAL OFFICE
Unit 215, JESA ITC Building,
Mango Avenue, Cebu City
Tel . Nos. (032) 266-2040 *
(032) 266-2297
Telefax No. (032) 266-2298
LAS PINAS REGIONAL OFFICE
2/F Unit 1 Global Dee Chong Building
Alabang Zapote Road,
Las Pinas City 1740
ORTIGAS MARKETING CENTER
Unit 112, Basement 1 Park Avenue,
West Lane Robinsons Galleria
EDSA corner Ortigas, Quezon City
Tel. Nos.: (632)635-4569 / 638-6402 /
637-7403
CUBAO REGIONAL OFFICE
Rooms 300,302,304 & 306
Dona Consolacion Bldg.,
Gen. Santos St., Araneta Center,
Cubao, Q.C.
Tel. Nos. (632) 913-3559 *
(632) 913-3363
Telefax No. (632) 913-3314
DAGUPAN REGIONAL OFFICE
Room 2A, 2/F Lenox Hotel Rizal Street
Dagupan City
Tel. No. (075) 515-2060
Telefax No. (075) 522-5820
SAN PEDRO, LAGUNA
2/F, EM Arcade 1, Brgy. Poblacion,
National Highway, Mabini Street,
San Pedro, Laguna
Tel. No. 553-8801
Telefax No. 553-8341
Branches
BACOLOD CITY
2nd Floor, Door 25 & 26 El Court Building,
corner Lacson & 1st Streets, Bacolod City
Tel. No. (034) 709-1684
Telefax No. (034) 468-0165
DUMAGUETE CITY
Ground Floor Pastor Blg., 139 Real Street,
Dumaguet City, Negros Oriental
Tel. No. (035) 422-0786
Telefax No. (035) 226-1998
BAGUIO CITY
Suite 507 & 604 National Life Bldg.
Session Road, Baguio City
Tel. No. (074) 444-3264
Telefax No. (074) 444-3263 (Branch 1)
Telefax No. (074) 424-8470 (Branch 2)
GENERAL SANTOS CITY
2nd Floor, SAFI Building 4,
corner Magsaysay Ave & Papaya Street,
Gen. Santos City
Telefax No. (083) 552-2075
BUTUAN CITY
2nd Floor, Rural Bank of Cabadbaran
Building, San Francisco Street, Butuan City
Telefax No. (085) 342-4193
BINONDO
Rm 505, 5/F Pacific Center
Quintin Paredes St., Binondo, Manila
Tel. No. (032) 516-5040
Telefax No. 516-4557
CALAMBA CITY
Unit 2H, Calamba Executive Center
Brgy. Uno, Crossing, Calamba City
Tel. No (049)_545-6562
Telefax No. (049) 545-1898
CALAPAN CITY
Adriatico Street, Ibaba East,
Calapan City, Oriental Mindoro
Telefax No. (043) 288-1151
DAVAO CITY
Door 10 G/F & Rooms 203 & 204
Plaza de Luisa Building B.,
Ramon Magsaysay Avenue, Davao City
Tel. Nos. (082) 224-2144 / (082) 222-1856
(082) 221-8285 * (082) 224-0549
Fax Nos. (082) 224-2143 (G/F) /
(082) 224-0548 (2/F)
ILOILO CITY
Ground. Floor, Emmanuel Business Center
B. Aquino Avenue, Molo, Iloilo City
Tel. No. (033) 509-8876
Telefax No. (033) 336-0529
LEGASPI CITY
Room 203, PVLB Building,
Peñaranda Street, Legaspi City
Telefax No. (052) 480-2073
NAGA CITY
2/F, Luzonian Machine Shop Bldg.,
Dr. Panganiban Drive, Concepcion Pequena,
Naga City
PAGADIAN CITY
Ariosa Steet corner Sanson Street,
San Francisco District, Pagadian City
Telefax No. (062) 353-1492
Puerto Princesa City
Suite 2C, 2/F AICON Plaza,
San Pedro, Puerto Princesa City, Palawan
SAN FERNANDO CITY, LA UNION
Room 201, Rudel Building 9
Quezon Avenue corner Ancheta Streets
San Fernando City, La Union
Tel. No. (072) 607-9252
Telefax No. (072) 700-50-16
SAN FERNANDO CITY, PAMPANGA
2/F Diamond Building,
McArthur Highway Dolores,
San Fernando City, Pampanga
Tel. No. (045) 435-2218
Telefax No. (045) 961-0170
TACLOBAN CITY
Door No.3 Oscar Dy Building,
Real Extension, Sagkahan District,
Tacloban City
Tel. Nos. (053) 325-3321 / (053) 325-3322
Telefax No. (053) 321-4617
TUGUEGARAO CITY
2nd Floor, LIM Building
Diversion Road, Pengue, Tuguegarao City
Tel. No. (078) 844-4565
Telefax No. (078) 255-1031
ZAMBOANGA CITY
Lim Building, Gov. Camins,
Zamboanga City
Tel. No. (062) 991-5816 / (062) 991-5792
Telefax No. (062) 991-5817