Most people say, "Di ko kailangan ng insurance, bahala nalang mga anak ko sa amin?" . Is that the same thing you are imagining today? How are you sure that your kids can take good care of you 100% while they are also feeding their children (and sometimes their spouses who cannot contribute to the finances of the household) - the worse, is even the relatives, or friends of relatives and of the spouse's at minsan pa nga pati friends of the friend of the relative of the spouse (huh?)
Is this the picture you have in mind?
Again, a universal account is an account that addresses both insurance and investments.
Ang tanong, when do you need it? Kung malapit ka na magkasakit? kung matanda ka na? bata pa or earning an income?
In my opinion, get a policy as soon as possible. Regardless of age, you should start getting one right away as soon as maintindihan o ang investment instrument na ito. Mas mahirap kung, dahil parang pakiramdam mo too late na and lalong wala ka pang gagawin.
(Given that you are able to set aside a certain amount to address premium payments in the next 10,15 or 20 years). A unit linked account is for medium to long term savings, so if you opt to withdraw funds from it after 3 mos less than 5 years, hindi ito ideal. VUL requires you to save long term.
(Given that you are able to set aside a certain amount to address premium payments in the next 10,15 or 20 years). A unit linked account is for medium to long term savings, so if you opt to withdraw funds from it after 3 mos less than 5 years, hindi ito ideal. VUL requires you to save long term.
When you get a Universal account or Unit Linked investments, there must be a purpose? Anong purpose nga ba ng isang VUL?
A VUL is like hitting two birds with one stone. You have an insurance coverage and plus nalang ang investment. You have health benefits and living benefits. For health benefits, of course standard ang Death, Disability, Critical Illness, Hospitalization and Accident coverage. While the "Living Benefit" Part can address the ff: 1. Income Replacement
A VUL is like hitting two birds with one stone. You have an insurance coverage and plus nalang ang investment. You have health benefits and living benefits. For health benefits, of course standard ang Death, Disability, Critical Illness, Hospitalization and Accident coverage. While the "Living Benefit" Part can address the ff: 1. Income Replacement
a. INCOME REPLACEMENT
For example, you are earning Php50,000 today and your expenses is around Php30,000/mo. That means, kung may mangyari sayo, who is going to support the Php30,000 / month that you contribute to your household?
Php30,000 x 12 mos = Php 360,000 (May ganito ka bang savings ngayon kung sakali may mangyari sa iyo at hindi ka maka survive for 1 year? )
Ang mahirap pa dito is kung ikaw lang ang sole source ng income na iyan? at kung ma prolong ang hindi mo pag balik sa trabaho, halimbawa, maaring in the next 2 years.
Php30,000 x 24 months = Php 720,000 (saan mo ito kukunin? )
PS. An emergency fund is still a MUST! it is 3-6 month equivalent of your expenses kept in a bank with an investment strategy under "low risk" category. your Income replacement fund from your VUL will take over should your emergency fund cannot cover.
b. CRITICAL ILLNESS
kung sakali ang need mo naman is to address critical illness expenses and you needed at least 1 Million para ma enjoy mo pa ang buhay mo kasama ang pamilya mo, mayroon ka ba ngayon na madudukot nang hindi ka nangungutang or nagbebenta ng mga ari-arian? If you have other investments, would you like to touch your hard earned money or investments for hospitaliztion at tingin mo hindi naman ito maubos kung sakali need mo ng minimum 2M for kidney transplant and dialysis?
Don't you think it is best that whatever you have worked for, for years can become a legacy to your children?
kung sakali ang need mo naman is to address critical illness expenses and you needed at least 1 Million para ma enjoy mo pa ang buhay mo kasama ang pamilya mo, mayroon ka ba ngayon na madudukot nang hindi ka nangungutang or nagbebenta ng mga ari-arian? If you have other investments, would you like to touch your hard earned money or investments for hospitaliztion at tingin mo hindi naman ito maubos kung sakali need mo ng minimum 2M for kidney transplant and dialysis?
Don't you think it is best that whatever you have worked for, for years can become a legacy to your children?
c. ANOTHER SOURCE of RETIREMENT FUND
Most people who own a VUL account would like to address their need for retirement. Hindi ba ang sarap sa pakiramdam ng di natin poproblemahin kung aalagan ba tayo ng anak natin or hindi?
Most people who own a VUL account would like to address their need for retirement. Hindi ba ang sarap sa pakiramdam ng di natin poproblemahin kung aalagan ba tayo ng anak natin or hindi?
Hindi ba masarap pakinggan na tayo pa mismo ang pag aagawan ng mga anak at apo natin pagdating ng panahon?
How does it sound to you, giving your children the freedom to use his money for his own family and do not feel disappointed when he is not able to give you an allowance to buy medicines?
How to compute for your retirement need:
(This computation does not address inflation yet, for an accurate computation of your retirement funding, email the author of this blog at jendeesapo@gmail.com)
Using Time Value of Money:
(Edited April 21, 2017)
Factors:
4% Inflation
10% minimum rate of return on investments
(Edited April 21, 2017)
Factors:
4% Inflation
10% minimum rate of return on investments
My last note, sa tingin mo saan mo gagamitin ang isang Universal Account? how sure are you with your future if after reading this, you will still do nothing?
Jendee Sapo - De Guzman, RFP
FInancial Planning Advocate
FInancial Planning Advocate
jendeesapo@gmail.com
jendee@personalfinance.ph
