"Give your child the best baon for life." - www.pamana.com.ph
Bank of the Philippines (BPI) has just released a new type of savings account that I personally think is a great way to help Filipino families. They call this BPI Pamana Savings Account. Don't confuse it with Panama (with the n and m switched around). It is NOT an off-shore account so your money will stay in the Philippines.
Introduction to Life Insurance
Life insurance is a great way to protect a family from unexpected deaths. This is a way for a family to be saved from the burden of having to pay a lot of medical bills, burial fees, etc when the breadwinner of the family dies unexpectedly.
The usual life insurance works by paying a certain monthly / yearly fee or what is usually called a "premium." The money from the payment goes to the life insurance company and will be used to pay the beneficiaries of those people who have died. The person insured gets a certain amount or benefits depending on the type of plan availed. Some insurance companies give as high as Php 1 to 2 million to the beneficiaries when the insured has died or passed. Some insurance plans also give monetary benefits to the beneficiaries when the insured has acquired a critical illness that is considered life-threating or the an illness that will incur a lot of expenses when treated. Critical Illnesses include but is not limited to the following: Heart Attack, Stroke, End-Stage Renal Disease, etc.
Savings Account Features
The BPI Pamana Savings account is similar to a regular BPI savings account. You will be able earn interest on your savings. You can choose to have a Debit Card or a Passbook. Personally, I go with the Debit Card. You can also have a peso account or a US Dollar account, but the dollar account is available only for passbook holders.
Free Life Insurance Features
Unlike your usual Life Insurance Policies that have premium monthly or yearly payments, the BPI Pamana Savings Account will not require you to have any premium payments to avail the life insurance. You will be entitled upto 3x worth the Average Daily Balance (ADB) of the past three calendar months prior to the insured's death. Example: If you have Php 100,000 pesos in your Pamana Savings account at the time of your passing, your beneficiaries will receive Php 300,000. That's not too bad considering you did not pay any premiums. The insured is allowed to get upto Php 2 million or $40,000. So if you have Php 1 million saved in your Pamana Account, your beneficiary will not receive Php 3 million, but will receive the maximum amount of Php 2 million.
There's no need to undergo a medical checkup unlike your usual Life Insurance Policies that will require you to list all of your current medical conditions and undergo a medical checkup. The life insurance will take effect on the same day you open your account. Everyone who is in the age of 15 to 60 years old are entitled to avail the free life insurance.
How to Open a BPI Pamana Savings Account
Now a Pamana Savings Account requires you to maintain a specific amount in your account. The maintaining balance for this type of savings account is Php 25,000.
Just like opening a regular savings account in BPI, just go to any branch and approach any BPI Customer Service Agent. Just tell her you would like to open a Pamana Savings Account. The requirements for opening a savings account are as follows:
- 2 Valid IDs (any government issued ID: passport, driver's license, PRC License)
- Your Latest Billing Statement for address verification (Cellphone, Electric Bills, etc.)
- 2 pcs of 2x2 photo
- Initial Deposit of Php 25,000
To learn more on how to open a BPI Savings Account, click here.