How to Terminate your PSMBFI membership
How to Terminate your PSMBFI membership
We
frequently see posts on social media about terminating their PSMBFI membership
owing to the recent release of the 2018-2019 Members Experience Refund (MER)
and Members Benefit on Individual Equity Value (MBIEV), which some of its
members were unable to receive (yet).
The
Public Safety Mutual Benefits Fund, Inc. (PSMBFI) is a mutually benefit association
whose objective is to improve the morale and well-being of its members,
especially public safety professionals.
PSMBFI as “insurance” rather than an “incentive.”
Insurance
coverage is crucial for all PNP personnel as it can help them financially in
times of need such as being injured in police operations, killed in action,
accidental death, loan packages, etc.
It is extremely important to the PNP that every member of its workforce is covered by an insurance system that can withstand the risks associated with their line of work.
Historically, all members of the Philippine National Police (PNP) were required to be covered by the Government Service Insurance (GSIS), as the government, as an employer, has an obligation to look after its employees’ well-being.
Congress
passed the GSIS Act of 1997 which exempted the PNP, AFP, BFP, and BJMP uniformed
personnel from GSIS’s mandated social insurance coverage.
However,
the law did not provide an alternative option. Deceased uniformed PNP
personnel’s families lost insurance coverage, and PNP Commanders struggled to
provide financial aid to help bury their fallen comrades.
This
issue prompted former Chief PNP Police Director General Recaredo A. Sarmiento
II to commission an actuarial firm to create a mutual benefit to give insurance
protection to police officers. As a result, the PSMBFI was established.
High-risk
operations and police activities against terrorists or rebels expose uniformed
PNP personnel to a greater need for insurance.
The
Securities and Exchange Commission registered PSMBFI on December 11, 1997, and
the Insurance Commission licensed it on February 4, 1998.
Other
than the PNP, PSMBFI protects the following government agencies: NAPOLCOM, BFP,
PPSC, MMDA, OTS, NAMREA, LTO, PNPA, BI (Immigration), COASTGUARD, and DENR.
The
following insurance plans are offered by PSMBFI:
a. Special Group
Term Insurance (SGTI)
b.
Equity Plan (EP)
c.
Basic Group Term Plan (BGTP)
d. Burial Assistance Benefit (BAB) and
e. Endownment at 56 (E-56)
Every
PSMBFI member pays their monthly premium on the member equity plan.
When
we say premium, it is an agreed price for assuming and carrying the risk – that
is, the consideration paid an insurer (PSMBFI) for undertaking to indemnify the
insured (members) against a specified peril.
In
insurance, there are two parties involved here: the insured and the insurer.
The insured refers to the PSMBFI member or the one who applied for the
insurance policy, while the insurer is the insurance company, which in this
case is the PSMBFI company.
The
uniformed member’s premium is equal to 3% of their monthly basic pay, which is
automatically deducted from their salary.
For
example, if the salary of a patrolman is ₱29,668, his monthly premium for the
member equity plan is ₱890.04. Half of its monthly premium will go to its
savings or equity value and the other half will go to insurance.
The
rank of patrolman has an insurance coverage of ₱438,752.11 for natural death
like sickness. However, if the cause of death is an accident, then the
insurance coverage will be doubled, amounting to ₱877,504.22.
Now,
if God forbid, a patrolman dies in the performance of his duty or in a police
operation, his or her beneficiaries will get a killed-in-action benefit
equivalent to his or her additional 50% of his basic life insurance coverage.
If he/she
is injured or wounded during a major or minor operation, he/she will receive a
wounded-in-action benefit, and if the operation results in permanent
disability, then he/she will get the accident disablement benefit.
If you
have completely decided or opted to terminate your membership with PSMBFI, then
comply with the following requirements:
a. Personal
letter of member addressed to PSMBFI President signifying the reason/purpose;
b.
Service record
c. Endorsement
d. Photocopy of PNP ID and latest payslip.
Note: To
know more about the process of terminating your membership, including its
additional requirements, please visit your PSMBFI office near you.
Now
why am I saying these details about insurance to you? Because death is certain
to happen (at some future time).
Life
insurance can assist your family members in repaying whatever debt you leave
behind, including personal and/or educational loans, as well as mortgage debt.
At a
time when your family is already grieving your loss, life insurance can assist
eliminate some of the financial obligations they may face after your death.