AGREEME

NT
KNOW ALL MEN BY THESE PRESENTS:
THIS AGREEMENT IS MADE AND ENTERED INTO SOLELY BY AND
BETWEEN:
ABC Corporation, a corporation organized and
existing
under
Philippine laws, with address at Unit 123 Maaraw Bldg., Novaliches, Quezon
City, represented herein by its President and CEO, Mr. Sonny Liway, (hereinafter
referred to as the EMPLOYER).
And the employees named in Annex A, who are all of legal age and
Filipino
(hereinafter referred to individually as EMPLOYEE and collectively as
EMPLOYEES).
WITNESSETH:
THAT
WHEREAS, the EMPLOYER has purchased life insurance for its
EMPLOYEE/S as indicated in Annex A, for employee benefit purposes only.
WHEREAS, the EMPLOYER pays 100% of the insurance premium to
SUN LIFE OF CANADA (PHILIPPINES), INC. (SLOCPI)1.
NOW, THEREFORE, for and in consideration of the foregoing, the
above-named parties do hereby agree and consent to the following:
A. As to Premium:
1.

While the EMPLOYEE is employed with the EMPLOYER, the

EMPLOYER shall pay the full premium on theas indicated in the policy.

2.

The obligation of the EMPLOYER to pay the premium, however,

shall cease upon the EMPLOYEEs separation or retirement, or
transfer of the ownership of the policy to the EMPLOYEE.

B. As to Surrender or Transfer of Ownership of the Policy

1. Upon EMPLOYEE separation from the EMPLOYER due to
resignation, retirement, or involuntary separation2, the EMPLOYER
has two (2) options:
a. Surrender the policy. EMPLOYER will receive the surrender value
and use the surrender value as stipulated in item C of this

Agreement; or.
b.

Transfer t the ownership of the policy to the EMPLOYEE.

EMPLOYEE will pay the premiums and exercise all the rights as
the new owner of the policy as stipulated in item D of this
Agreement.

1 Please amend accordingly to show premium payment sharing between

EMPLOYER and EMPLOYEE.
2 An EMPLOYEE lawfully but involuntary separated from the Company,
and separation pay is not required by law, only option B.1.a is available.
C. As to Surrender of the Policy:
1.

If a covered EMPLOYEE (resigns)3 or is lawfully but involuntarily

separated, and separation pay is legally due, the surrender value of the
policy shall be used for his separation pay.
EMPLOYER shall process
the surrender ofsurrender o f the policy in accordance with the policy
contract and the turnover of the separation pay to the EMPLOYEE. It is
understood that the cash surrender value will be as defined in the policy
contractpolicy contract which will be paid to the EMPLOYER as owner
of the policy.
If such surrendersuch surrender value is less than
whatthan w h at Philippine labor law requires as separation pay, the
EMPLOYER shall pay the difference.

2. If a covered EMPLOYEE is lawfully but involuntarily separated from the

company and separation pay is not required by law the EMPLOYEE shall
not be entitled to the surrender value. It isIt is understood that the cash
surrender value will be as defined in the policy contract which will be
paid to the EMPLOYER as owner of the policy. EMPLOYER shall keep
the surrender value.
3. If a covered EMPLOYEEcovered EMPLOYEE retires from service and is
eligible for retirement benefits, the EMPLOYER will use the surrender
value of the policy to pay his retirement benefits. If thisIf this
surrender value is lower than
the amount legally required as
retirement pay under Phillipine labor laws, the EMPLOYER shall pay the
difference. It is understood that thethat the cash surrender value will be as
defined in the policy contract which will be paid to the EMPLOYER as
owner of the policy. EMPLOYER shall process theprocess the surrender
of the policy in accordance with the policy contract and the
turnover of the retirement benefits to the EMPLOYEE.
4.

If a covered EMPLOYEE qualifies for rewards or loyalty benefits as

defined by the EMPLOYER, the EMPLOYER will use the surrender value
of the policy to pay the rewards/loyalty benefits. It is understood that the

cash surrender value will be as defined in the policy contract whichcontract,

which will be paid to the EMPLOYER as owner of the policy. Whatever
discrepancy between the agreed rewards or loyalty benefits and the
surrender value of the policy will be the responsibility of the
EMPLOYER. EMPLOYER shall process theprocess the surrender of the
policy in accordance with the policy contract and the turnover of the
rewards/loyalty benefits tobenefits to the EMPLOYEE.

D. Option toOption to Continue the Policy. An EMPLOYEE who iswho

is eligible for employee benefits asbenefits
stateda s
instated i n
Section C.1, C.3 and C.4 above, may opt to have the policy
transferred to his name in accordance with the policy provisions on
assignment.
The EMPLOYEE shall thereafter exercisethereafter
e x e r c i s e the rights of a policy owner (including but not limited
to payment of premiums, amendment of designated beneficiary/ies).

3 This will be included ONLY if Employer provides separation pay to employees in

case of resignation.
E. Death Benefit. The EMPLOYEE shall haveshall have the exclusive
right to name the beneficiary of the policy where he is life insured,
who shall be entitled to receive the policy proceeds in the event of the
EMPLOYEEs death.
IN WITNESS WHEREOF, the above-named parties hereunto set their hands this
28th day of November 2013 at Quezon City.

ABC Corporation

EMPLOYEES

SONNY LIWAY President & CEO

Whose names and signatures appear in
Annex A
REPUBLIC OF THE PHILIPPINES )
) S.
S.

ACKNOWLEDGMENT
BEFORE ME, a Notary Public, for and within Quezon City, personally
appeared the following with their competent evidence of identity written
opposite their names:
Name
Sonny Liway

Competent Evidence of Date and Place of Issue

and
Identity
Expiration Date
DL No. 123456
12/3/2012/Quezon
City/12/3/2015

See Annex A

known to me and to me known to be the same persons who have executed the
foregoing Agreement and acknowledged to me that the same is their free
and voluntary act and deed and that of the corporation represented.
WITNESS MY HAND AND SEAL, on the date and place first
above written.
NOTARY
PUBLIC Doc. No. 1;
Page No.
2;
Book No.
3; Series of
2013.
Annex A
Insurance
Details
Product
Name
Employee
Jane Doe

Name:
of Signature Position

Face Amount
of Insurance
Supervisor P250,000.00

John Doe
Juan
Cruz

Supervisor P250,000.00
Dela

Supervisor P250,000.00