Late last year, when someone in our extended family passed away, I became familiar with some of the death benefits available for beneficiaries in the Philippines. In my extended family’s case, some of these benefits were claimed successfully while the others were denied for various reasons.

Here are some death benefits in the Philippines:

SSS – SOCIAL SECURITY SYSTEM (For employees of private companies)

- Funeral benefit of 20,000 pesos regardless of number of monthly contributions, given to the person who spent for the funeral
- Monthly pension or lump-sum cash benefit for the legal spouse and legitimate, illegitimate or legally adopted children younger than 21 years old (up to 5 children), and older children with permanent disabilities

Pension is for the primary beneficiaries of deceased members who have contributed at least 36 monthly contributions before the semester of death.
Lump-sum is for primary beneficiaries of members who contributed less than 36 monthly contributions before the semester of death.

If there are no primary beneficiaries (no spouse and no children), the dependent parents receive the lump-sum cash benefit).

Pension amount or lump-sum amount depends on the number of credited years of membership and average monthly salary credit.

- For members who died in a workplace accident or due to an occupational illness, additional Employee Compensation benefits are given to beneficiaries.

Note:  File your claim at the SSS branch nearest where you live.

PAG-IBIG or HOME DEVELOPMENT MUTUAL FUND (HDMF)

- The death benefit amount is a percentage of the Total Provident Benefits.  The Provident total is the sum of the member’s monthly contributions, employers’ contributions for the member and dividends. Yong death benefit sabay na ibinibigay sa Total Provident Benefit. Isang claim form lang siya.

Note:  File your claim at the branch where the member’s records are kept.

OWWA (For OFWs)

- Burial benefit of 20,000 pesos
- Insurance benefit of 100,000 pesos if death is due to natural cause or 200,000 pesos if death is due to accident

OWWA
Insurance & Health Care Benefits Division
7th Street cor. FB Harrison St. Pasay City
Monday to Friday, 8 am to 5 pm
(or go to your OWWA Regional Welfare Office)

Note: If you’re an OFW, make sure your membership is always current. My relative paid his OWWA membership for the almost 30 years he worked abroad, but because he worked for two straight years during his last contract, he was not able to pay his OWWA membership, so his family’s claims were denied by OWWA.

You pay your OWWA when you pay your OEC or Overseas Exit Clearance or Balik-Manggagawa (BM) papers at the POEA or at any accredited OEC payment center or service. The OWWA membership fee is 25 US dollars, payable in pesos.

PRIVATE INSURANCE

-  This refers to life insurance policies purchased from private insurance companies such as Philam, Insular Life, and BPI-Philam Life (formerly Ayala Life), Sun Life, Manulife, PNB Life and others.

PRIVATE INSURANCE linked to BANK ACCOUNTS

-  There are life and accident insurance policies offered by banks as added benefits to certain special bank accounts and time deposits.

- An example is the BPI Get Started Savings Account with Life Insurance. The account comes with a free BPI-Philam Life insurance equivalent to 5 times the account’s balance, up to 2 million pesos.
Balance means the average month-to-date average daily balance of the past three calendar months prior to the death ofthe insured.

PRIVATE INSURANCE linked to CREDIT CARDS

- This is for credit cardholders who have purchased credit life insurance and life insurance policies from or through their credit card issuers.

- Examples are the Assure and Saver life insurance programs of Axa Philippines, a joint venture between Metrobank and Global AXA Group of France.

INSURANCE linked to MEMORIAL PLANS

- Some memorial companies give financial assistance or death benefits to the beneficiaries of those who pass away while still paying their memorial plans in monthly, quarterly or yearly installments.

- For instance, the St. Peter Life Plans with Return of Premium policy gives cash assistance to beneficiaries if the planholder dies during the paying period or within 5 years after full payment. There’s also additional benefit for death or loss of limbs or eyes due to accident.

HMO

- HMOs provide primarily hospitalization benefits, but most of them also provide death benefits to HMO members’ beneficiaries.

- An example is the INTELLICARE corporate HMO program of Asalus Corp. This HMO plan gives cash assistance of 10,000 pesos for natural death and 20,000 pesos for accidental death to the beneficiaries of principal HMO cardholders.

LOCAL EMPLOYER

- Separate death benefits for employees of companies with retirement, incentive or insurance programs for their employees. Usually ang mga big local companies and some foreign multinationals ang merong ganitong Death Benefits in the Philippines.

I looked at Book 4 of the Labor Code of the Philippines (titled Health, Safety and Social Welfare Benefits) and I saw that the only mandatory employee benefit related to death is that given by SSS. Mandatory for employers na tapatan nila ang SSS contribution ng employees. And later, naging mandatory rin yong employers’ share sa PAG-IBIG contributions.

OFW EMPLOYER

- Some OFW employers give death benefits, especially to the beneficiaries of long-time employees. If the OFW passes away while on vacation, the primary beneficiary should email the employer, together with a copy of the death certificate and a copy of marriage or birth certificate, and request for any financial benefit.

COOPERATIVES

- There are some cooperatives that provide death benefits or financial assistance to the beneficiaries of members. An example is the Center for Community Transformation (CCT), which has a group insurance partnership with Philam Life.

BARANGAY ASSOCIATIONS

- In our barangay and nearby barangays in our province in the North, there is an association called SARANAY. Whenever someone in the barangay dies, each family in the barangay contributes a certain amount of money (the same amount for all families) to accumulate money for the bereaved family. A total of 10,000 pesos (50 pesos times 200 families) is already a big help in the province.  I am proud of my mother, who is now in her 80s, because she and her friend were the ones who started this program years ago in our rural area, and now this program has spread out into other barangays.

May death benefit ba na nakukuha sa PHILHEALTH?
Sori, WALA, kasi hospitalization or medical treatment cost assistance ang focus ng Philhealth.

GSIS, AFP, PNP

Note:  We are not familiar with death benefits provided by the GSIS, AFP or PNP, so we will not be able to answer questions about these benefits.

GSIS (For government employees)

- Burial benefit of 20,000 pesos, given to the spouse or to the children (if spouse is already deceased)
- Survivors’ monthly pension or cash benefits to primary beneficiaries (legal spouse and minor children up to 5). If there are no spouse and children, death benefits are given to secondary beneficiaries.
- For members who died in the course of work or due to an occupational illness, additional Employee Compensation benefits are given to beneficiaries.
- Proceeds of compulsory and/or optional life insurance policies and/or educational policies and/or accident insurance policies for beneficiaries of members who participated in these optional programs.

Note:  GSIS has several retirement and life insurance options, kaya iba-iba ang pag-compute ng amounts of death benefits received by beneficiaries.

If you’re in the Muntinlupa area,  and you would like to purchase a St.  Peter Life Plan or St. Peter Memorial Plan, just make a comment below, and I’ll email you the name and cell phone no. of a St. Peter agent.  Sabi ng agent na ito, bibigyan daw ako ng referral fee or konting deduction sa monthly payment ko sa plan ko kung meron akong mai-refer.

Sa dami ng pre-need na naba-bankrupt, bakit ako nagre-refer ng memorial plan?  Baka sakali lang na naghahanap ka ng ganitong plan at meron kang tiwala sa St. Peter.  Hindi naman sila na-bankrupt noong kasagsagan ng pre-need collapse. At hindi naman sila focused sa pera, kundi sa memorial chapels, caskets at memorial services. Meron daw silang malawak na taniman ng mga trees (forgot the tree name) which they use to make caskets.

Hindi natin alam, baka ma-bankrupt din ang St. Peter, kung ma-mismanage (of course, hindi sana), pero nakita ko kasi yong hirap nang namatayan, kaya kumuha rin ako ng plan, para hindi mahirapan ang anak ko, lalo na at only child siya. Pero lagi kong ipinagdarasal na pahiramin pa ako ng Panginoon ng mahaba-habang buhay para mapagtapos ko pa siya sa college, at makatulong pa ako sa extended family members.

Death Benefits in the Philippines

What are the advantages of Modified Pag-ibig II?

1.  Guaranteed by the Philippine government.

Hindi nawawala parang bula, kagaya ng nangyari sa maraming pre-need firms na mismanaged by families na hindi na naawa sa mga planholders nila.

2.  The interest rate is much higher.

As of April 2010, the annual interest rate for Modified Pag-ibig II was 5.5%, walang tax, and much higher than savings account rates na usually ay between 0.5% to 1.75% lang. Bukod sa mababa na ang interest ng savings account, mababawasan pa ng withholding tax.

The Pag-ibig board can also declare an interest rate of more than 5.5%.

Sa time deposits naman, rates range from only 1.75% for deposits of at least 10,000 pesos to 2.75% for at least 5 million pesos.
Merong 5% na interest rate, pero ito ay ibinibigay sa mga at least 1 million pesos na hindi gagalawin for 5 years.

Isa pa, sa savings account, instead na saving money, ang ilan ay nalulugi pa, kasi madalas nababawasan ang savings dahil nagwi-widro sa ATM ng ibang bank at hindi name-maintain ang required balance.

The interest rate can go up, if the Pag-ibig board finds time to feel more generous dahil lumaki ang kita ng Pag-ibig.

Yong recent Pag-ibig table of expected earnings, 6% ang ginamit nila na interest rate:

3.  Tax-free ang interest earnings ng MP2. Walang bawas.

Ang time deposit, merong 20% withholding tax sa interest income, except lang sa mga 5-year tax-free time deposits. Ang savings account, meron ding 20% withholding tax sa konting na na-earn na interest.

4.  Low monthly minimum savings amount, which is 500 pesos per month. Puede mong dagdagan.

5.  Your savings are still yours, even if you’re unable to continue contributing to the program.
Sa pre-need, mawawala ang 50k, 100k, 150k mo kung hindi mo naituloy kahit valid ang dahilan, kasi pinirmahan mo yong contract na ganon.

6.  You CANNOT withdraw your Pag-ibig savings anytime. Maganda ito, in the sense, na hindi mo siya magagasto sa kung anu-ano lang. Hindi mo rin siya puedeng iwidro at ipahiram sa nakikiusap. “Ay sori talaga, nasa Pag-ibig kasi savings namin eh, hindi puede iwidro.”

7. You CANNOT borrow it. Hindi puedeng mag-loan dito. Yong sa mandatory Pag-ibig I, doon ka mag-loan. Advantage itong hindi mo ma-loan, kasi hindi mo magagalaw.

8. Available for withdrawal after 5 years. Oh ayan, puede nang iwidro! Pang-tuition, o pang-down sa house and lot, or pambili na ng bahay.

Kung ayaw mo pa, at gusto mo pang dagdagan, you can keep on saving money by renewing it for another 5 years.

Who can save with Modified Pag-ibig II?

Anyone who is already a member of Pag-ibig I. Dapat mag-member muna sa Pag-ibig I kasi ito ay mandatory. Ang Pag-ibig II ay voluntary. Puede sa OFW, sa seaman, at sa employee, self-employed or business owner dito.

How do we start saving with Pag-ibig II?

Visit any Pag-ibig branch with your IDs and apply for Modified Pag-ibig II membership. Fill out a Modified Pag-ibig II Registration Form (MP2RF). You can start with 500 pesos, or go ahead with 5,000 pesos.

Saving Money with Modified Pag-ibig II

However, you can file a claim if you’re an authorized representative with a Special Power of Attorney (SPA), or a member’s court-appointed administrator or executor.

Pag-ibig death benefits consist of only two:

1. Provident Benefit. The amount of this is equal to the member’s Total Accumulated Values (TAV). TAV is the total of the following:

- all contributions made by the member
- all contributions made by the member’s employers for the member
- all dividends credited by Pag-ibig to the member’s account

Note: Salary loan balances or due housing loan amortizations will be deducted from the TAV.

2. Death benefit. The amount of this benefit depends on the TAV total and membership status at the time of death.

List of primary legal heirs or beneficiaries:

- Spouse (wife or husband)
- Children, whether legitimate, illegitimate, or legally adopted
- Parents of member

List of secondary legal heirs or beneficiaries:

- Grandparents of member (father’s side and mother’s side)
- Brothers and sisters of member
- Nephews and nieces of member
- Other nearest relatives

Note: For the distribution or sharing of benefits, the intestate succession rules contained in the New Family Code is followed.

Documents required to file a death benefit claim:

1. Application for Provident Benefits (APB) Claim (FPC010)
2. Death certificate of Pag-ibig member, issued by NSO or Certified True Copy by the Civil Registrar
3. Funeral receipt or payment certification from the funeral service provider
4. Notarized Proof of Surviving Legal Heirs (FPC011)
5. Notarized Affidavit of Guardianship (FPC012)
(if children are 18 years old and younger, or physically/mentally handicapped children)
6. Birth certificates of all children, issued by NSO, or Certified True Copy by the Civil
Registrar, or baptismal or confirmation certificates
7. Marriage certificate, issued by NSO, or Certified True Copy by the Civil Registrar, if
member is married
8. Birth certificate of member, if claimants are the parents or siblings
9. Certificate of No Marriage (CENOMAR), issued by NSO, if member is single
10. Two valid ID cards of claimant
11. Other documents required by Pag-ibig Fund upon filing of claim

Valid IDs: passport, driver’s license, voter’s ID, postal ID, SSS card, company ID, PRC ID, GSIS e-Card, AFP ID, IBP ID, OWWA ID, OFW ID, and SIRB seaman’s ID.

You can download the required Pag-ibig claim forms from the following:

Application for Provident Benefits Claim

Proof of Surviving Legal Heirs

Affidavit of Guardianship

Where to file your claim:

File your Provident benefit claim at the Pag-ibig Fund branch where the Pag-ibig member or employer has remitted the most or latest contributions. If the member had multiple employers, check if the member’s contributions are already consolidated in the branch where you are filing.

Note: Pag-ibig Fund says DO NOT HIRE a THIRD PARTY to follow-up your claim.

If the legal heirs or beneficiaries are unable to file the Pag-ibig Fund Death Benefit themselves, the claim can be filed by their authorized representative, their appointed court administrator or executor.

Any authorized representative is required to present a Special Power of Attorney (SPA) (Use Pag-ibig Fund SPA Form FCP014), his or her valid IDs, and the valid IDs of the member and beneficiaries.

There are two types of membership:

• Mandatory
• Voluntary or Individual Payor.

I’ll be talking about the Voluntary type or Individual Payor type.

Who can apply for Voluntary of Individual Payor membership?

You can be a Voluntary member if:

• You’re a Filipino aged 18 to 65 years old
• You can pay the monthly contribution.
• You’re not working with a company or organization covered by Mandatory coverage.

Examples of individuals who can apply:

• Former employees or former OFWs who like to continue their Pag-ibig membership
• Housewives or househusbands
• Filipino employees of foreign organizations not under mandatory coverage
• Employees of organizations not under mandatory coverage
• Members and leaders of religious groups
• Pensioners or retirees
• Barangay officials
• Other public officials not covered by GSIS
• Other individuals who have money to pay the monthly contribution

How do you apply for membership?

1. Go to a Pag-ibig branch or an extension office. Bring at least one valid ID and a pen.
2. Ask the guard where to apply for Voluntary membership.
3. You will be assisted by a Members Services Officer (MSO).

Note: Merong konting pagkakaiba ang processes among the branches, kasi may branch na maraming tao, merong konti. May branch na online, merong hindi.

4. Puedeng the MSO will first go over your records via the computer, or you will be asked to fill up two copies of the Member’s Data Form (MDF) immediately. Here’s a copy of the Pag-ibig MDF form.

5. You will be given a copy of your accepted MDF and instructions about your monthly payments.

Meron na ring HDMF Online Registration System:
http://www.pagibigfund.gov.ph/PubReg/

This is still new, so the processing is not yet complete. You still have to complete your application at a branch or extension office.

NOTICE:

If you surf the Pag-ibig website, you are asked to bring only a valid ID when you want to enroll.

But when I went recently to the Pag-ibig Fund Buendia Makati branch, I was told to submit the following requirements depending on my employment status. Click here to see the requirements you need to submit to apply as Voluntary member or Individual Payor.

Related Articles:

PAG-IBIG Branches in Metro Manila, Cavite, Laguna, Bulacan

Pag-ibig Benefits — Retirement Claims

Pag-ibig Retirement in the Philippines — Process Your Claims Quicker

There are only five conditions wherein you are allowed to get your Provident retirement benefits.

Under the sixth reason — death –  beneficiaries will get the benefits.

Dapat merong applicable sa iyo na isa sa mga sumusunod:

• You are 60 years old or older.
• You have 240 monthly contributions or more.
• You have permanent and total disability.
• You have been formally separated from service because of serious illness.
• You have immigrated to the U.S. or another country.
• You have already retired from the SSS or GSIS or from your company under your retirement plan and you are 45 years old or older.
• Death. Your legal beneficiaries will get your benefits.

For each of these conditions, you have to submit proofs.

Here is a copy of the Pag-ibig Benefit Claim Form.

On the Provident claim form, sa bandang baba, andon yong checklist ng required documents.  Ang required documents depende sa reason mo.

Before you go to Pag-ibig Fund, the best things to do first are to:

1. List the companies where you worked, addresses of these companies, and dates when you worked in these firms.
2. Go to Pag-ibig Fund and ask for a copy of your contributions. Go to the Pag-ibig branch where your last company is making its Pag-ibig submissions.  Bring your ID.
3. Check if all your Pag-ibig monthly contributions are included.
4. If there are missing contributions, think if these could have been submitted in another Pag-ibig branch. Companies usually make submissions to the Pag-ibig branch nearest to them.
5. If you need to, request for a consolidation of records.  This is a copy of the Pag-ibig Request for Transfer of Members’ Records form.
6. If you’re making a claim for your parent or relative, have a SPA or Special Power of Attorney.  This is a copy of the SPA for Pag-ibig Claims.

Other Related Forms:

Proof of Surviving Legal Heirs
Permanent Departure from the Philippines
Request for Consolidation or Transfer of Members’ Records

Related Articles:

Pag-ibig Retirement in the Philippines — Process Your Claims Quicker

Pag-ibig Retirement Linked to Pag-ibig Housing Loan

PAG-IBIG Branches in Metro Manila, Cavite, Laguna, Bulacan

Cavite, Laguna and Bulacan.

NCR NORTH

ORTIGAS

611 Westar Building
Shaw Boulevard, Pasig City
Telephone: 746-8784 / 633-9514

KAMIAS

768 Mac Douton Building
EDSA corner East Avenue
Diliman, Quezon City
Telephone: 426-9528 / 9226791

As of July 2011, Pag-ibig Kamias moved to:
795 Anchor Building, EDSA
Quezon City
Tel Nos: 920-8694 / 920-9816
Email: kamias@pagibigfund.gov.ph

MANILA

Park n Ride Building
P. Burgos Avenue corner Dr. Basa Streets
Ermita, Manila
Telephone: 527-6729

CALOOCAN

Puritan Philippines, Inc. (PPI) Building
355 EDSA corner Gen. Tirona Street
Caloocan City
Telephone: 367-0717 / 362-6457

ANTIPOLO Service Office

Emraud Square Plaza
Circumferencial Road
Antipolo City
Telephone: 696-6052 / 696-6046
696-6055 / 696-6034 / 696-6056
As of July 2011, Pag-ibig Antipolo has moved to:
Budget Lane Shopping Center Provincial Road
Brgy San Jose, Antipolo City
Tel No: 696-60-46
Email: antipolo@pagibigfund.gov.ph

CUBAO

G/F Union Square Condominium
145 15t h Avenue
Cubao, Quezon City
Telephone: 995-0292

NCR SOUTH

MAKATI I

1st, 2nd and 3rd Floors
317 Justine Building
Sen. Gil Puyat Avenue
Makati City
Telephone: 813-2570

MAKATI II

1st, 4th and 5th Floors
317 Justine Building
Sen. Gil Puyat Avenue
Makati City
Telephone: 817-2637

PASAY

Marvin Terraces Condominium
980 Vito Cruz cor. Singalong Streets,
Manila
Telephone: 526-7964
As of July 2011, Pag-ibig Pasay has moved to:
1st and 2nd Floors, Roxas Strip Building
Libertad Street corner Roxas Boulevard
Pasay City
Tel Nos: 846-1311 / 659-7423
Email: pasay@pagibigfund.gov.ph

CAVITE

Olma Building
Emilio Aguinaldo Highway
Imus, Cavite
Telephone: 046-4719370

LAGUNA

High Rise Business Center
National Highway Halang, Calamba City
Laguna
Telephone: 049-5451232 / 5451236

BULACAN

2nd  Floor, North Centrum Bldg. Tabang,
Guiguinto, Bulacan
(near Malolos City)
Telephone: 044-6903042

Related Articles:

Pag-ibig Retirement in the Philippines — Process Your Claims Quicker

Pag-ibig Retirement Linked to Pag-ibig Housing Loan

nabayaran yong Pag-ibig housing loan mo, hindi mo makukuha ang retirement claim mo, o yong Provident Fund Benefits mo.

When my husband filed his Provident Fund Benefits claim, Pag-ibig asked him to get a clearance from the Pag-ibig Housing Loan division, certifying that his housing loan has been paid. Thanks to a big blessing from the Lord, we were able to pay his housing loan.

But eventually after submitting all the needed documents, and after several months, my husband’s Provident Fund Benefits claim was rejected because the required total 240 monthly contributions was not reached. Kulang siya ng 6 contributions.

IMPORTANT:  Don’t abandon your Pag-ibig housing loan. Look for a buyer who will assume your balance. If you have to lose some amount to be able to give a discount to attract a buyer, go for it.

Has anyone of you tried surrendering your house bought with a Pag-ibig housing loan to Pag-ibig? Yong i-surrender (after paying for just a few months) para lang hindi ma-foreclose at para ma-erase yong record mo sa Pag-ibig at nang sa ganon ay makuha mo ang Provident Fund benefits mo? Puedeng i-share mo dito.

By the way, here’s a link to the Provident Fund Benefits Claim Form where you can see that Pag-ibig checks if you have a Pag-ibig housing loan before it processes your benefits or retirement claims.

Related article:

Pag-ibig Retirement in the Philippines — Process Your Claims Quicker

Pag-ibig does not consolidate the records of members whose employers are located in different Pag-ibig jurisdictions; it expects its members to consolidate their records.

It takes months to consolidate, so start now.

My husband, who had two employers and who also continued paying as a voluntary member while working abroad, had to track his contributions and consolidate them in one branch before he was allowed to submit his retirement claims.

The dollar-denominated Pag-ibig Overseas Program, however, is really separate. You make your claims separately at the Gil Puyat, Makati branch.

By the way, my husband has paid more than 240 monthly contributions, so he was to able to file a claim. But he’s still waiting because of the consolidation process.

Update as of March 2011:

My husband’s claim, which was processed over a span of several months in 2009, was rejected because Pag-ibig counted only 231 contributions. Pag-ibig advised my husband to pay nine monthly contributions, either monthly, quarterly, or at one time, but has to wait for 9 months before he can file his claim again.  We didn’t yet refile because we decided the money can earn more with Pag-ibig than with a time deposit. We can use it for my daughter’s tuition fees in her higher years in college.

Related Articles:

PAG-IBIG Branches in Metro Manila, Cavite, Laguna, Bulacan
Pag-ibig Retirement Linked to Pag-ibig Housing Loan