© phillife july 2015 1phillife.com.ph/wp-content/uploads/2015/06/sibol_primer.pdf · © phillife...


SIBOL Product Primer

The SIBOL Product Primer 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 SIBOL, 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 SIBOL?

A: SIBOL is a variable life insurance. It 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 fund 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 financial instruments and investment funds within PhilLife’s portfolio such as 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: 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, PhilLife 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, PhilLife Equity Fund: Investment in stocks


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, PhilLife Opportunity Fund: Stocks investment that provides accessto a variety of industry sectors


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-PSEi but with at least a 3-year dividend paying track record.

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 investments are growing only by 1 percent, you 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 dividends 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 more sensitive 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.

Cost of Insurance Charge. Cost of Insurance charge is a one-time charge 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 upon 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. There are no surrender charges from the 6th year and beyond.

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 monthly. 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-on-year (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 will be processed based on the unit price on the next valuation date following the date of approval and in cleared funds, subject to the cut-off time as determined by PhilLife.

Requests for withdrawal will be processed based on the unit price on the next valuation date, following the date of approval, subject to the cut-off time as determined by PhilLife.


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 that 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 the 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.


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.

About PhilLife


Corporate Headquarters

G/F, 8F - PenthouseiAcademy Plaza 324 Sen. Gil Puyat Ave. Makati City.

Tel. No. (+632) 798-LIFE (5433)

reGIoNaL oFFICes

CAGAYAN DE ORO2nd Floor., Grace BuildingA. Luna Street, Cagayan De OroTel. No. (08822) 728-572Telafax No. (088) 880-1009

CEBU Unit 215, JESA ITC BuildingMango Avenue, Cebu CityTel Nos. (032) 2662040 / 266-2297Telafax No. (032) 266-2298

CUBAO Rooms 300,302 304 & 306Dona Consolacion Bldg. Gen. Santos Street, Araneta Center Cubao, Quezon CityTel. Nos. (632) 913-3559 / 913-3363Telefax No. (632) 913-3314

DAGUPAN Room 2A, 2/F Lenox Hotel Rizal Street, Dagupan CityTel. No. (075) 515-2060Telafax No. (075) 522-5820

DAVAO Door 10 G/F Plaza de Luisa Build-ing B. Ramon Magsaysay AvenueDavao CityTelafax No. (082) 224-2144

LAS PINAS2/F, Golden Kiwi Bldg. Pamplona 2 Alabang-Zapote Road Las Piñas CityTel . No. (632) 808-2791 / 238-2287Telefax No. (632) 808-2790

ORTIGAS Unit 112, basement 1Park Avenue West LaneRobinsons Galleria, OrtigasQuezon CityTel No. (632) 553-8801Telefax No. (632) 553-8341

SAN PEDRO, LAGUNA2/F, EM Arcade 1Brgy. Poblacion,National Highway, Mabini St., San Pedro, LagunaTel. No. 553-8801Telefax No. (632) 553-8341


BACOLOD CITYTel. No. (034) 709-1684Telefax No. (034) 468-0165

BAGUIO CITYTel. No. (074) 444-3264Telafax No. (074) 444-3263 (Branch 1)Telafax No. (074) 424-8470 (Branch 2)

BINONDOTel. No. (034) 516-5040Telefax No. (632) 516-4577

BUTUAN CITYTel. No. (085) 342-2969Telafax No. (085) 342-4193

CALAMBA CITYTel. No. (049) 545-6562Telafax No. (049) 545-1898

CALAPAN CITYTelafax No. (043) 288-1151

DUMAGUETE CITYTel. No. (035) 422-0786Telafax No. (035) 226-1998

GENERAL SANTOS CITYTelafax No. (083) 552-8876

ILOILO CITYTel. No. (033) 509-8876Telafax No. (033) 336-0529

LEGASPI CITYTelafax No. (052) 480-2073

NAGA CITYTelafax No. (054) 473-7116

PAGADIAN CITYTelafax No. (062) 215-4685

PALAWANTelafax No. (048) 434-0886

SAN FERNANDO CITY, LA UNIONTel. No. (072) 607-9252Telafax No. (072) 700-5016

SAN FERNANDO CITY, PAM-PANGATel. No. (045) 435-4937

TACLOBAN CITYTel. Nos. (053) 325-3321Telefax No. (053) 321-4617

TUGUEGARAO CITYTel. No. (078) 844-4565Telefax No. (078) 255-1031

ZAMBOANGA CITYTel. No. (062) 991-5816Telafax No. (062) 991-5817

BraNCHes

© phillife july 2015 1phillife.com.ph/wp-content/uploads/2015/06/sibol_primer.pdf · © phillife...

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