31/07/2026
One of the biggest challenges for consumers today is choosing among the many types of insurance policies available in the market. There are term insurance plans, whole life policies, VULs, limited-pay plans, regular-pay plans, and countless variations in between. With so many options, features, and sales presentations, it can be difficult to determine which policy is actually suitable.
To simplify the evaluation process, I always anchor my comparison on two things: Premium-to-Coverage Ratio and Sustainability.
The Premium-to-Coverage Ratio answers a simple question: How much protection is the client getting for every peso paid? A good policy should provide meaningful coverage relative to its cost, not just attractive features or attractive projections.
Sustainability, on the other hand, looks at whether the policy can realistically stay in force for the long term. A plan that offers impressive benefits but is difficult for the client to maintain may eventually lapse, defeating its purpose. This includes understanding what happens when payments are missed, whether the policy has non-forfeiture options, available cash values, automatic premium loans, paid-up options, or any built-in mechanism that helps keep coverage active during financial difficulties. A policyโs sustainability is often just as important as its benefits because protection only exists while the policy remains in force.
The best policy is not necessarily the cheapest or the one with the highest projected returnsโit is the one that delivers adequate protection while remaining affordable and sustainable for years to come.
At the end of the day, a policy only works when it provides sufficient coverage and stays active when it is needed most.
