Life insurance should be one of the most important insurances, because the life of a human being
is one of the most expensive things (Uskana Ahmeti, 2013).
Life insurance is a contract between the policy owner and the insurer, where the insurer agrees to
pay a designated beneficiary a sum of money upon the occurrence of the insured individual’s or
individuals’ death or other event, such as terminal illness or critical illness. In return, the policy
owner agrees to pay a stipulated amount at regular intervals or in lump sums. Life insurance is a
contract between the insurer and the policy owner whereby a benefit is paid to the designated
beneficiaries if an insured event occurs which is covered by the policy (Ravi Akula and Tirupathi
Kanch , 2013).
In the Philippines, the Insurance Commission is the insurance regulator. It is a government
agency under the Department of Finance. The Commission supervises and regulates the
operations of insurance and reinsurance corporations, which need to be authorised. (SyCip
Salazar Hernandez & Gatmaitan, 2013)
There are two types of life insurance that an individual can avail. These are Traditional life
insurance and ULIP or much widely known as a variable life insurance policy.
Traditional life insurances form a well-constructed system. Traditional life insurances are the
