Updated: September 28, 2022
It’s important to have an emergency fund for unforeseen expenses, especially medical emergencies. Moreover, having life insurance also gives your family some financial security if ever something happens to you.
Both are necessary for you and your family’s financial protection.
But between the two, I recommend saving and building your emergency fund first. Because the chances of suddenly needing cash are much higher than dying. Financial emergencies just happen more frequently.
Furthermore, it’s essential that your emergency fund is placed where it is accessible and is exposed to very low risk. In short, a bank deposit account is the best place to put your emergency fund.
Fortunately, there are Philippine banks that offer savings account products that come with free life insurance. And thus, allowing you to “hit two birds with one stone” – build an emergency fund + have life insurance.
The life insurance benefit is based on the Average Daily Balance (ADB) of the account for the past month/s. This means that the more you save, the higher your insurance coverage will be.
So which banks in the country currently offer such deposit accounts? Below is a quick list, in alphabetical order.
BDO Kabayan Savings Account
This product is designed for overseas Filipinos who send remittances regularly. It comes with a passbook and ATM, and available in Peso and US Dollar currencies. Insurance coverage is provided by BDO Life.
Initial Deposit: PHP 100 / USD 100
Maintaining Balance: no maintaining balance with at least one remittance each year
Balance to earn interest: PHP 5,000 / USD 200
Interest rate (p.a.): 0.25%
Insurance Coverage: 50% of ADB plus 50% of remittance for the past 12 months (PHP 1M limit)
BPI Save Up Automatic Savings Acccount
This product allows you to build your savings through automatic debits from your salary or another BPI deposit account. It’s available in BPI, BPI Family, and BPI Direct Savings Bank. Life insurance is provided by BPI-Philam Life Assurance Corp.
BPI Save Up
Initial Deposit: no initial deposit required
Maintaining Balance: PHP 1,000
Balance to earn interest: PHP 5,000
Interest rate (p.a.): 0.25%
Insurance Coverage: Up to 10x your ADB (PHP 4M limit)
BPI Family Save Up
Initial Deposit: no initial deposit required
Maintaining Balance: PHP 1,000
Balance to earn interest: PHP 3,000
Interest rate (p.a.): 0.50%
Insurance Coverage: Up to 10x your ADB (PHP 4M limit)
BPI Direct Save Up
Initial Deposit: no initial deposit required
Maintaining Balance: PHP 1,000
Balance to earn interest: PHP 1,000
Interest rate (p.a.): 0.50%
Insurance Coverage: Up to 10x your ADB (PHP 4M limit)
BPI Pamana Savings Acccount
The Pamana Savings Account is available both in BPI and BPI Family. You choose between the Debit Card or Passbook account. And it’s available in both Peso or US Dollar currencies. Life insurance is provided by BPI-Philam Life Assurance Corp.
BPI Debit Card (ATM Card)
Initial Deposit: PHP 25,000
Maintaining Balance: PHP 25,000
Balance to earn interest: PHP 25,000
Interest rate (p.a.): 0.25%
Insurance Coverage: Up to 3x your ADB (PHP 2M limit)
BPI Passbook (PHP or USD)
Initial Deposit: PHP 75,000 / USD 1,000
Maintaining Balance: PHP 75,000 / USD 1,000
Balance to earn interest: PHP 75,000 / USD 1,000
Interest rate (p.a.): 0.25% (PHP) / 0.125% (USD)
Insurance Coverage: Up to 3x your ADB (PHP 2M limit / USD 40,000 limit)
BPI Family Debit Card (ATM Card)
Initial Deposit: PHP 5,000
Maintaining Balance: PHP 5,000
Balance to earn interest: PHP 10,000
Interest rate (p.a.): 0.50%
Insurance Coverage: Up to 3x your ADB (PHP 2M limit)
BPI Family Passbook (PHP or USD)
Initial Deposit: PHP 50,000 / USD 1,000
Maintaining Balance: PHP 50,000 / USD 1,000
Balance to earn interest: PHP 50,000 / USD 1,000
Interest rate (p.a.): 0.50% (PHP) / 0.125% (USD)
Insurance Coverage: Up to 3x your ADB (PHP 2M limit / USD 40,000 limit)
Maybank Philippines Save n Protect Savings Account
This account provides a passbook and access to your funds with a regional ATM card, which you can use at any Maybank ATMs in Malaysia, Singapore, and Brunei without charges. AsianLife & General Assurance Corporation is their insurance partner.
Initial Deposit: PHP 50,000
Maintaining Balance: PHP 20,000
Maintaining Balance to get free insurance: PHP 50,000
Balance to earn interest: PHP 20,000
Interest rate (p.a.): 0.25%
Insurance Coverage: 2x your ADB (PHP 1M limit, up to PHP 3M for multiple accounts)
PNB Power Saver Account
The Power Saver Account (formerly named Angat Savings Account) is a tiered, high-interest earning savings account that comes with a record keeper and an EMV debit card. Allianz PNB Life provides insurance coverage.
Initial Deposit: PHP 10,000
Maintaining Balance: PHP 10,000
Maintaining Balance to get free insurance: PHP 25,000
Balance to earn interest: PHP 10,000
Interest rate (p.a.): 0.50% to 1.75% (depends on ADB)
Insurance Coverage: 1x your ADB (PHP 1M limit, up to PHP 4M for accidental death)
RCBC All-in-One Checking Account
This All-in-One checking account allows you to become a member of the Hexagon Club, where members enjoy higher interest rates and free insurance.
Initial Deposit: PHP 25,000
Maintaining Balance: PHP 25,000
Maintaining Balance to get free insurance: PHP 100,000
Balance to earn interest: PHP 25,000
Interest rate (p.a.): 0.50% to 1.25% (depends on ADB)
Insurance Coverage: 1x your ADB (PHP 3M limit)
Security Bank All Access Checking
All Access is a savings and checking account in one. It comes with a passbook, checkbook, Everyday Debit / ATM Mastercard, and FREE Life Insurance from FWD Life Insurance
Initial Deposit: PHP 5,000
Maintaining Balance: PHP 25,000
Balance to earn interest: PHP 100,000
Interest rate (p.a.): 0.10%
Insurance Coverage: Up to 3x your ADB (PHP 3 million limit)
Veterans Bank Long-Term Time Deposit Products
Philippine Veterans Bank offers three types of time-deposit products that come with free insurance.
Hyper Saver Time Deposit
Minimum Deposit: PHP 100,000
Term: 5 years and 1 day
Interest rate (p.a.): 3.75% (monthly compounding of interest)
Insurance Coverage: 100% of the time-deposit amount (PHP 5 million limit)
Additional Benefits: Disablement or dismemberment, etc.
Maxi-Return Time Deposit
Minimum Deposit: PHP 100,000
Term: 5 years and 1 day
Interest rate (p.a.): 3.375% (monthly compounding of interest)
Insurance Coverage: 100% of the time-deposit amount (PHP 5 million limit)
Additional Benefits: Disablement or dismemberment, daily in-hospital income benefit, etc.
Hyper Saver Time Deposit
Minimum Deposit: PHP 100,000
Term: 5 years and 1 day
Interest rate (p.a.): 3.60% (straight-line computation)
Insurance Coverage: 100% of time-deposit amount (PHP 5 million limit)
Additional Benefits: Disablement or dismemberment, daily in-hospital income benefit, etc.
Final Note
I don’t work for any of these banks. If you have questions regarding the terms and conditions, or you’d like to know more details, then please contact the bank’s customer service directly or visit the branch nearest you.
Lastly, if you know more bank deposit account products that offer free life insurance, then please share them in the comments section so I can add them to the list. Thank you.
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Thank you 🙂 I only know of BDO and BPI. Madami pa pala hehe
Hi sir Fitz. Veterans Bank has free insurance on their long-term time deposit products.
Reference: https://www.veteransbank.com.ph/long-term-time-deposit.html
Products:
A. Hyper Saver Time Deposit (Php 100,000 minimum deposit)
Inclusive of:
1. Accidental Death or Loss of Life
100% of Time Deposit amount but not to exceed Php 5 Million
2. Cash Assistance Benefit Due to Loss of Life
25% of Accidental Death Benefit but not to exceed Php 250,000
Cash Assistance coverage for ages 71-75 years will be reduced to 12.5% of Accidental Death Benefit
3. Permanent Disablement or Dismemberment Resulting from Accident
100% of Time Deposit amount but not to exceed Php 5 Million
4. Unprovoked Murder and Assault
100% of Time Deposit amount but not to exceed Php 5 Million
B. Maxi-Return Time Deposit (Php 100,000 minimum deposit)
Inclusive of:
1. Accidental Death or Loss of Life
100% of Time Deposit amount but not to exceed Php 5 million
2. Daily In-Hospital Income Benefit Due to Sickness or Accident-Related Confinement
0.10% of Accidental Death Benefit
Maximum of Php 5,000/day, with a minimum 1 day and a maximum 30 days confinement
For ages 71-75, 0.05% of Accidental Death Benefit
3. Cash Assistance Benefit due to sickness or illness
25% of Accidental Death Benefit but not to exceed Php 250,000
Cash Assistance coverage for ages 71-75 years will be reduced to 12.5% of
4. Accidental Death Benefit Permanent Disablement or Dismemberment
Resulting from Accident
100% of Time Deposit amount but not to exceed Php 5 Million
5. Unprovoked Murder and Assault
100% of Time Deposit amount but not to exceed Php 5 Million
C. Advantage Plus Time Deposit Advantage Plus Time Deposit
Inclusive of:
1. Accidental Death or Loss of Life
100% of Time Deposit amount but not to exceed Php 5 Million
2. Daily In-Hospital Income Benefit Due to Sickness or Accident-Related Confinement
0.10% of Accidental Death Benefit
Maximum of Php 5,000/day, with a minimum 1 day and a maximum 30 days confinement
For ages 71-75, 0.05% of Accidental Death Benefit
3. Cash Assistance Benefit Due to Loss of Life
25% of Accidental Death Benefit but not to exceed Php 250,000
Cash Assistance coverage for ages 71-75 years will be reduced to 12.5% of Accidental Death Benefit
4. Permanent Disablement or Dismemberment Resulting from Accident
100% of Time Deposit amount but not to exceed Php 5 Million
5. Unprovoked Murder and Assault
100% of Time Deposit amount but not to exceed Php 5 Million
Mayroon din pala sa PNB 🙂
Thanks, sir Fitz!
RCBC offers free life insurance through their Hexagon Membership but the minimum initial deposit is 100k. Kinda like preferred banking. Metrobank’s savings accounts for kids has accident insurance.
Hi Sir Fritz,
Ano ba ang ADB or Average daily balance?thanks
@Gerald
Take how much money you have in your savings account at the end of every day, and find the average.
If Monday your balance is P20k; then Tuesday, your balance is P25k; then Wednesday, your balance is P21k.
It is said that your ADB for the past 3 days is (20k + 25k + 21k) / 3 = P22k
For BPI Pamana, they take the ADB for the past 3 months. So you just take the average of the money at the end of the day the most recent 90 days. Then multiply that by 3 and you have your insurance coverage.
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Hello sir Fritz, if pamana needs 25K minimum balance of debit card with only 3x insurance coverage while the Save up needs only 1K balance with 10x insurance coverage.. then people will opt to choose the Save Up rather than the Pamana? what are the cons for this preference?
Hi Sir Fitz! Same question with Lilo. I’m planning to open a BPI Pamana account but stumbled upon this blog and realized that BPI Save-Up might be a better product given the maximum coverage of 4M, low maintaining balance, and 10x insurance coverage . What are your thoughts on this?
@Lilo and @Ces
Save Up can only be set up as an automatic debit – you’d need a salary account or another BPI account where the money will be transferred from. Pamana is like your usual savings account. If you can open a Save Up, then that is a better option in all aspects.
Hi Sir Fritz! My parents recently retired and they are planning to put their savings in BPI. They are 65y/o. Is there an age requirement to avail of the insurance?
Oh, more banks to choose from! Thanks for sharing. 😀
[…] Philippine Bank Deposit Accounts With Free Life Insurance It’s important to have an emergency fund and life insurance. That’s why putting your emergency cash in these bank deposit accounts makes a lot of financial sense, because you get free life insurance along with it. […]
hi Sir Fitz!
I have a dollar account po sa BPI kaso po di ko nahuhulugan regularly though balance is more than the initial deposit, im an OFW entitled po ba ako sa life insurance
Thank you for coming up with the list of banks with life insurance.
I’m seeking a suitable bank account that is free to hold an account. This is for someone with very little money but to whom I can forward cash to internationally. The direct-save-up account looks good. what’s required to get an account?
Is there a curmudgeon in the house? Yes, I am present. I think we all love to get something for FREE, certainly an attractive price. Since first viewing an add for these “free” insurance products, my dark side went to work asking the question, is this really a good deal? The bank accepts your money and in return you receive abysmally low annual interest. Perhaps that is a fair trade-off for the free insurance?
I then asked a what if question on that ADB (Average Daily Balance). What happens if the account holder is stricken with something long term that may well be terminal? Bankers are NOT stupid, they are very good with numbers. Hospitals often demand payment for service as you go along, not on the day of discharge when the full remaining balance due is usually expected to be paid.
Somehow I get the feeling that the banks offering this insurance well know that many people will be drawing down their accounts to pay bills for medications, lab tests etc. As the average daily balance drops, so does your insurance coverage. Sadly, I can see in my mind that some folks will be ready to exit this life after a lengthy illness with their savings depleted. When they do pass, that insurance coverage, or most of it will not be there any longer. I am very aware that many (most?) hospitals will not allow you to leave (dead or alive) without payment. You go home to wait for the grim reaper and continue to use money in the account with free insurance,,,the ADB also continues to shrink.
Am I wrong about this? For me, I would want to have in place other insurance and cash to pay those medical bills. In the event my loved ones must go to the bank to make a claim against my free life insurance, it would be nice if there were in fact something actually there for them. An almost empty account that has been drawn down over the past six months or one year could well mean no or very little free insurance for them. These are the thoughts of an old but still thinking curmudgeon.
[…] some bank savings account can also give you free life insurance, and even health or travel insurance in some cases. That’s a cost-free way to have financial […]