Give Me Good Reasons Why I Should Get Insurance

[Ada]

Naah. I've actually made up my mind to get insurance and I just need a little shove. Part of me thinks I don't need it. :D So, what should I be looking for in an insurance package or an insurance company?


P.S.
I was thinking: one of the signs you're getting old is when the insurance agent comes knocking at your door.

[zimdude]

I don't know the details of the packages - but I think you should seek financial stability in the insurance company, an assurance that your money is safe and sound...

[KuyaDanny]

When a life insurance agent comes knocking at your door, it does not necessarily mean you are getting old. More likely, it means you have begun earning an income, which deserves to be protected.

The younger and healthier you are, the cheaper your life insurance will cost. So while a life insurance agent may prefer to sell to an older person (his commissions will be higher), it makes sense to sell to a younger one because it's easier to get coverage approved, and the younger person lives longer, allowing him to keep paying premiums for a longer period.

Disclosure: I worked for four years with Philamlife, the Philippine subsidiary of AIG.

Since you seem to be more or less decided, I won't give the basic reasons for getting insurance and instead recommend:

1) Buy as much insurance as you can afford. It will only get more expensive as you grow older. At this early stage in your career, you should plan on your income growing steadily in the years ahead. Therefore, the time will come when your insurance protection will be inadequate and you'll need more. It's OK to "overbuy" when you're young.

2) Buy basic life insurance protection only. That's all you need. Compare rates for the same plan sold by different companies. Do not buy endowment products, which are a form of investment. Save the cash and invest the money yourself.

3) Choose a big insurance company that's been around for a while. There are many operating here, including multinationals (Sunlife, Manulife, AIG) and local (Insular, National, Ayala Life, Grepalife). The government regulators supervising life insurance companies in this country have generally done a good and professional job keeping life insurance companies well-run and stable in this country. That is one thing with our government you can be truly happy about. So if the company has been around for a while, it should be OK.

4) Do you need help comparing insurance plans? Let me know. I might advise for free. ;)

[CaRaMBa]

*offtopic*

Hmmmm parang I know why you posted this. :D Sales talk mo rin ako Ada, I'm interested too, I just don't have time to contact the guy I talked to before. :)

[brownpau]

Go for it, Ada, and go for it ASAP. While you're still young, it's an excellent investment, so long as you get your plan from a stable, credible, and well-established insurance company.

I'm with one of those self-sustaining plans where you stop paying after a certain number of years, and the premium pays for itself from there. The total output at maturity is significantly less, of course, than if I opt to continue payments, but still far more than enough to keep me satisfied in my old age. (Or enough to keep my potential spouse satisfied if I die. :D )

[dudung]

Is a "pension plan" from Ayala plans (with minimum life insurance coverage) good enough?

That way, I don't really need to die first before I can ever take advantage or reap the benefits.

[KuyaDanny]

Reference brownpau's post above.

1) Please do not call, or regard, life insurance as an "investment". What kind of investment can it be if the investor has to die first before he gets his money, and his profits?

Life insurance is purchased for protection, to compensate somebody for losses in the event of misfortune. This is exactly like getting insurance on your car or on your house. You are protecting yourself from losses which might happen if your car is stolen, gets into an accident, or if your house burns down.

2) The "limited premium payment" plan illustrated by brownpau is designed for people such as pop music performers, film stars, and professional athletes, ie, people who tend to earn plenty of money over a short period of time, and then "slack off" because they retire, fade from the limelight, bomb at the box office, or get injured.

Limited payment plans function by asking the policyholder to pay a little extra early in the payment period. The extra amount is invested by the insurance company so that when the policyholder stops paying, the money accumulated is used to keep the coverage going.

Maybe this is appropriate for brownpau. After all, he writes the songs that make the whole world sing. But for the rest of us, it is a little "mispackaged."

Consider that the typical income flow of the working professional with a long career is one that starts low, but grows steadily until his retirement. Given that the best time to buy insurance is early in the career, when it's cheapest and needed most, the more appropriate payment pattern would, I think, be equal payments until the coverage expires, or premiums which are low in the beginning, but rise as the insured's income rises.

[Irradiate]

kuya dan,

i kinda have to object to that. true, insurance is not an on-the-spot investment but it will still be considered as a means of saving your money for the future of your beneficiaries (which is actually what most investments are all about...future, savings etc.)

well, that's just my point of view :)

[Ada]

Originally posted by KuyaDanny
Buy basic life insurance protection only.

What do you mean by this? The agent who approached me offered this package which has six components [?] and I'm not sure I need all of them.

Originally posted by CaRaMBa
Sales talk mo rin ako Ada, I'm interested too, I just don't have time to contact the guy I talked to before. :)

You know what, I couldn't sales talk you even if I wanted to since the agent I talked to didn't make much sense. Quite persisent bordering on annoying too. :D

Another question: would it be better if got insurance from someone I personally know than a complete stranger?

[badabing]

Originally posted by KuyaDanny
Reference brownpau's post above.

1) Please do not call, or regard, life insurance as an "investment". What kind of investment can it be if the investor has to die first before he gets his money, and his profits?

Life insurance is purchased for protection, to compensate somebody for losses in the event of misfortune. This is exactly like getting insurance on your car or on your house. You are protecting yourself from losses which might happen if your car is stolen, gets into an accident, or if your house burns down.

some insurance products they sell today provide protection and are investment vehicles as well. for example my company covers me for an extra $100,000 and after five years of continuous payment i accumulate for myself an amount equal to all the premiums i paid which i could withdraw(note: this is not a loan). if i choose not to get this money it will further grow and could be substantial after like 15 or 20 years, with all the benefits of a traditional insurance.
yeah, get insurance while you are young so you can avail of the low premiums, well a not-so-risky lifestyle would also help.

KuyaDanny, i was with philam from 95 to 97 and am now back with the AIG group here in Delaware.

[aticus]

Ada, I agree with Kuya Danny, do not get endowments. Get basic life insurance/accident insurance.

If you're really serious about making your money work for you, go into stocks and bonds, especially US Blue Chips. They offer the most stable returns, and you have the added benefit of being able to pull out your money when you really need it. Endowment policies from insurance companies require you to pay for anywhere from 15 to 20 YEARS... unless you pay for the entire policy up front (in which case, you really don't need the extra money...).

I'm worried about my financial flexibility, so I don't like tying up my money for very long periods of time. Sure you get the returns, but in exchange you keep putting in money for 10 years in a row before you even get some of your "investment" back? Plus you have to keep paying for 10 years more? Nope, not for me... I don't mind paying for life insurance, because I know I need that... but to use endowment policies as my prime investment option might be too limiting financially...

Let me illustrate: Suppose, for the sake of the argument, that the country really does go to pieces bec. of impeachment proceedings dragging on too slow... what if your local insurance company folds up? You don't get the money you've been paying out for 9 years? Or what if you need to leave the country, or need to spend for a vital medical emergency BEFORE the endowment matures and starts paying out? What do you do then? You can't pull out, you can't use the money, you can't do squat. (Unless you're willing to give up some, or all, of your returns...) That, for me, is too scary to contemplate.

One last thought: Be sure you read the fine print. I think you'll find that with most (if not all) insurance companies, THEIR RETURNS ARE NOT GUARANTEED. In fact, when the insurance agent shows you projected tables of "earnings" from your endowment plan, they are just that... "projections." There is no guaranteed rate of return... in fact, the rates are often pegged to external factors, such as company profits... believe me when I tell you that a company that is heavily in debt will decrease, or stop altogether, the endowments you receive. And don't even get me started on what would happen if your company is in receivership...

So, for my PEx friends who are tired of my long posts and want the "essence" of my post distilled :) :

Use Life Insurance to protect you from unexpected tragedies. Use the remaining money to invest in more liquid and/or flexible investment options. You should be the master of your own money.

Have a long and fruitful life.

[munik]

If you are the major bread winner of the family,
getting insurance would be a smart move.
It would mean that your family would not be left without
a provider when something happens to you.

However, if you want to be a little "selfish" and
would want yourself to benefit at the same time, a pension plan would be better.

It gives your family the same protection as insurance
and at the same time would enable you to have financial
security when you retire.

I myself have a paid-up pension plan and i'm planning to
get another one of bigger plan value. Am also with Philam
Plans. I can offer you a plan suitable for your needs. Baka pwedeng ma-sulot yung agent mo. :D

[munik]

As far as getting one from someone you personally
know or from a complete stranger, what is more important
is the company that person represents. However, there
are cases of some people reproducing official receipts and forms of insurance companies and pocketing premiums.

However, if you get one from a friend, he/she can give you
a discount.
You can even get one from someone you only know from Pex
(like me :D) and I would also be able to give you discounts
on your first year payments. :D

[qwerty78]

kasi ang tatay ko nagtratrabaho sa all-asia?

[virgo14]

Originally posted by aticus
So, for my PEx friends who are tired of my long posts and want the "essence" of my post distilled :)...
i read EVERY word! then again i'm a speed-reader...:D

a lot of people i know wait till after they are married to get life insurance. is there a downside to putting it off for a few years? what are the advantages of getting one at 25 versus 30?

[aticus]

Biggest diff is you pay a higher premium if you start later in life... plus the older you are, the more likely they'll require you to take a med exam... and if you have a medical history that's a bit dodgy, they'll raise premiums even more.

Personally, I think the best reasons for young people to start paying for insurance at a younger age are the following:

a) They are "forced" to "save" their money. They don't spend it for the trappings of youth...

b) It forces younger people to start planning for the future. It's a big psychological thing.

c) It prepares them for the kind of long-term financial planning they'll need. It's a good habit to get.

d) It makes them see that their disposable income is actually a lot smaller than they may have initially thought.

e) If you wait, keep your money in the bank, and start later... you will lose money. Your money will be worth less, bec. you can rest assured premium prices will grow at a faster rate than bank interest rates. (Do you really think keeping your money in BPI, for instance, with 2 or 3% interest, will help you pay for the premiums later?)

So if you have the money, it's never really too early to start...

[KuyaDanny]

Originally posted by Ada

What do you mean by this? The agent who approached me offered this package which has six components [?] and I'm not sure I need all of them.

Then let's go through the components and I can give you reasons to buy, or not buy, each one.



You know what, I couldn't sales talk you even if I wanted to since the agent I talked to didn't make much sense. Quite persisent bordering on annoying too. :D

Another question: would it be better if got insurance from someone I personally know than a complete stranger?

Ada, if the guy isn't making any sense to you, then he's not doing his job and doesn't deserve to earn the commissions which he might have earned if you bought from him. Do not buy from this guy. There are many good insurance agents out there who will take the time to explain to you what you're buying.

As to your next question: my sister sells insurance, yet I have not bought anything from her. All the insurance I've purchased was sold to me by "complete strangers". These strangers, as you call them, have been in business for years and are totally professional. They haven't tried any hard sell tactics on me yet.

I guess what matters more is the kind of person selling, and how the product is sold to you. If your relative/friend uses lines like "Sige na, pinsan mo naman ako, tulungan mo na ang kamag-anak mo." or something like that, then I'd look for someone else.

[insomniac]

Hi Ada.:) My mom also sells insurance and from what I've seen from her, mine and other people's experiences, I'd say that there are 2 important things to consider in choosing an agent.

First it's important to choose someone you trust. I mean you have to be sure that this person knows what he/she is talking about, and can explain it to you pretty well. Para you can make the most of the money you're putting in, and it's clear to you what benefits you'll be getting. Also, that will help you in selecting a plan that suits your needs the most. Iba-iba kasi yun eh. And tama si Kuya Danny. Better to look for someone who's not just out to make a hard sell. :grrr: Kung hindi mahihirapan ka when it comes to asking for advice.

Second is the level of service the agent will provide you or the alaga. Think long term, cause you'll be making annual installments for at least 10 years, so it'd be better to make sure that agent is still around by then, and also keeping you updated about your policy.

I'm not sure with other life insurance companies, but in Sunlife kasi the agent is the one who is responsible for collecting the annual premiums(to make sure you make your payments on time - or else baka maglapse:(), and to keep you up-to-date with what's happening within the company. (i.e. demutualization, new policies, news on stocks and dividends blah blah.). So you can see how important it is that all throughout these times, someone is providing you with well-informed.

I saw the importance of having good service through my friend's bad experience. She told me that her mom's agent (who was their relative) didn't explain to them anything about the recent demutualization, kaya they were not able to take advantage of the benefits as much. They just cashed in the stock they received from Sunlife.. na PhP300 plus nung simula. And now it's reached PhP900.00 na.. so it's like sayang! :(vSabi nga niya if they had only been more well-informed....tsk tsk.

Anyway, hope this helps. I'm not sure but I think the different components you're talking about may be riders. Optional extra stuff you pay for that may provide you protection while your policy is not yet fully paid. Sort of like a "in case something happens to you while your policy is not yet fully paid, you will receive this much amount of money" clause. I think the other components might be health and female benefits. Am not familiar with Philam policies kasi eh.

Yaiks ang haba-haba na ng post ko... nuff said na for now. I think I said too much :p

[brownpau]

Maybe this is appropriate for brownpau. After all, he writes the songs that make the whole world sing. But for the rest of us, it is a little "mispackaged."

KuyaDanny :bop:

But seriously, I will probably change that payment plan in a few years. At the time I applied, my long-term career path and potential inflow of cash was mildly doubtful, so I went with something that would sustain itself after a given period.

Now that my life is a bit more in order, it's probably more advantageous to me and my beneficiary to continue payments.

[KuyaDanny]

Originally posted by Ada
Naah. I've actually made up my mind to get insurance and I just need a little shove.

Make sure you apply before March 23, 2001. After that date you'll be considered one year older (for insurance purposes), and your coverage will cost more.

[womanontop]

I have tons of insurance......

life
health
car
house
flood
fire
earthquake
liability

Seriousy, I think if you're single, living alone and don't have any valuable assets, then you don't need to buy life insurance. Pero, if you're married with at least 8 children, then you need to purchase insurance from a reputable co. for your family's protection. You also have to do your homework. Read as much as you can on insurance and don't fall for sales talk. YOu have to know what your needs are and what suits you. You don't want to over/under insure yourself.

[almightyge]

"ALL ABOUT INSURANCE "

Many of the most wonderful people I have met recently are people in the insurance industry. And every time I get the chance to give them a seminar or two I am always reminded of this material I gave a couple of years ago. It involves an accident I had when a truck decided to reshape my poor car. Listen to this.
After a tiring day in the recording studio I was glad to be on my way home but something happened along the way. While waiting for the traffic light to turn green, I felt a bump on my left side and the sound of crunching metal immediately gave me the hint that somebody has decided to reshape my car. When I looked at the left view mirror, I could see no car, instead I saw giant tires slowly flattening the curved side of my 2 year old car. The amazing thing about this was that even the truck driver was not aware that his right front tire has been squeezing the left side of my car like a toothpaste tube and he realized it only when I pushed hard on the car horn.

While getting out of the car my mind was working fast and even before I saw the damage I knew before hand that it would not be a beautiful sight. And true enough, what I saw was a badly damaged car. Oh how I dreaded the inconvenience yet somehow, a feeling of relief came knowing that the car is fully insured. But in spite of this assurance, my heart was pounding and my temper rising as I looked at the unsightly dent on the car.

But all anger subsided when I saw the pale ashen look on the young truck driver’s face. I mean he was really scared. Deep down inside I felt shame because there I was worried about the car damage and this guy was probably worried about his job and the next meal for his family.

Well we both went to the police precinct and out of fear and shock this young driver became incoherent. This elicited some sarcastic remarks from the impatient policemen and their rude behavior and treatment on the driver didn’t help him a bit. And that’s when I encouraged the poor guy and even requested the police to be gentler with him because the man obviously was in a state of shock. I never knew what ever happened to him after that because after filing the police reports, I was on my way back home.
As a result of this, I was reminded of comments that individuals wrote down on their insurance claim forms following their auto accidents. This compilation of statements was taken from a Toronto newspaper. You will notice that many of the comments made were likewise incoherent. Maybe because of shock, maybe because of trauma and then again maybe because of wanting to cheat. I’ll let you be the judge of these:
Some of the comments are:
1.) I misjudged a lady crossing the street.
2.) Coming home, I drove into the wrong house and collided with a tree i don’t have.
3.) I collided with a stationary streetcar coming the opposite direction.
4.) I heard a horn blow and was struck in the back - a lady was evidently trying to pass me.
5.) I thought my window was down, but found it was up when i put my hand through it.
6.) My car was stolen, and i sent up a human cry but it has not been recovered.
7.) The truck backed through my windshield into my wife’s face.
This one’s my favorite:
8.) A pedestrian hit me and went under my car.
9.) The guy was all over the road. I had to swerve a number of times before i hit him.
10.) If the other driver had stopped a few yards behind himself, the accident would not have happened.
11.) In my attempt to kill a fly, i drove into a telephone pole.
12.) I had been driving my car for 40 years when i fell asleep at the wheel and had an accident..
13.) My car was legally parked as it backed into the other vehicle.
14.) The pedestrian had no idea which way to go, so i ran over him.

It’s funny and it doesn’t make sense but then this normally happens to someone who has been involved in an accident. I guess if there’s one thing we need to be reminded of it’s simply this. Rremember that accidents happen and certainly, no one would desire for it to happen. But when it does happen, no matter whose fault it is, keep calm and stay cool.
One important lesson I’ve learned from all of this is that I needed to focus also on the damage of the other party and not just to look at my own. I may be worried about an ugly dent on my car when the other guy may be in danger of losing his job. And he has a family to feed.

So don’t be too hard on others. Cars are made to be bumped and you can’t help it. Just thank God that He has kept you safe through out your whole journey and never let a car dent ruin your day.

God bless you!

[inverbras]

Insurance is very good assurance if you have a family. Would recommend life insurance, accident and major medical plans. However, if you are single, life insurance doesnt make sense since you obviously dont have beneficiaries unless you want to leave the money to your parents. Accident and major medical you would need regardless, it compensates you for loss of limb, inability to work, etc.

You could also get insurance for the home to cover personal effects in case of fire, theft, etc. Also, for those who always lose their mobile phones, there is cellphone insurance though the premium is quite steep sometimes 25% of the phone itself.

[Anck-Su-Namun]

Has anyone heard of a group called WMA (World Marketing Association) which is pushing Argon locally?

[leelayce]

I WOULD NOT ADVICE YOU TO GET AN INSURANCE UNLESS . . . . . AND ONLY UNLESS




it's a million times better to do the job yourself than ask some institution to do things for you


except for some VERY FEW INSTANCES/CASES THOUGH




:bubble:

[lupuS]

Interesting, leelayce. Would you care to expound on this? I would like to know where you are coming from.

[leelayce]

Originally posted by lupuS
Interesting, leelayce. Would you care to expound on this? I would like to know where you are coming from.


yeah i know i should have done that, but i didn't know someone would be interested.

my opinion might not really matter much, so.....wag nalang, super tamad mag-expound.

pwedeng secret nalang? PM? baka awayin pa ako ng mga taong super mega ultra bilib sa insurance ooops! bka ikaw rin...... sORrY

:bubble:

[lupuS]

leelayce, dito na lang. Hindi ako super mega ultra bilib sa insurance. Hindi kita aawayin. Pramis. ;)

[zimdude]

it's a million times better to do the job yourself than ask some institution to do things for you


well, not everyone knows how to place and invest money, or put it aside and accumulate it at least.

[*]

Originally posted by leelayce
pwedeng secret nalang? PM? baka awayin pa ako ng mga taong super mega ultra bilib sa insurance. ooops! bka ikaw rin...... sORrY
:bubble:

di naman nang-aaway mga taga-PEx. :) pwede post na lang rito. i'd really appreciate to hear your side too. i dunno much about insurances ... umm, actually the right way to put it is, i dunno nothin! :glee: ). so, your views would be really welcomed. thanks!

[VINCEsanity]

quote:
--------------------------------------------------------------------------------
Originally posted by leelayce
pwedeng secret nalang? PM? baka awayin pa ako ng mga taong super mega ultra bilib sa insurance. ooops! bka ikaw rin...... sORrY

--------------------------------------------------------------------------------

pinoyexchange--- speak your mind.
kaya hwag ka matakot, every one has its own idea and enemy . hehehehhee peace.

oo nga , Give Me Good Reasons Why I Should Get Insurance!
:p

[KuyaDanny]

O ayan, leelayce, tatlo na ang nag-aabang ng post mo. Wag kang mag-alala. Mababait yan. ;)

[leelayce]

VINCEsanity: ikaw naman o, ayaw ko nga kumuha ka ng insurance eh.


heto na, por the pipol of the working felipinow FEXers.

This post is suppose to be very long and has to sound so . . . . . but....... anyway


At the very start of the thread, Ms. Ada was referring to the LIFE insurance. but insurance per se, is not really matunog to me, whether it be for property or asset mas lalo na kapag buhay.


If you want to, say, "save" up some money for the future( o kung kanino pa mang PUTURE yan),why -CAN NOT- can't u invest your own hard-earned money yourself. You can even have the discipline of handling your own money. ( WHERE TO INVEST IT ) ; sympre wherever you decide to invest your money on, it has to yield the highest return. kung ndi, ang tawag sayo LUGIng cutipie. ndi ka na cute.

Kapag education plan naman, di ko type lalo, pero meron yatang educ plan na, u pay a premium op dis amount tpos kapag lumaki na si baby, pwedeng ang bayaran ng insurance company yung kung magkano ang halaga ng tuition, regardless kung anong school at kahit magkano yung tuition( pero kung kalakihan naman ang premium na parang ikaw din ang nagbabayad, wag na, ganon din yun, tago mo nalang sa kahon yung pera mo, este sa bank.

sympre ganun talga ang business, utakan. kelangan nilang kumita

Insurance, like what LOLO DANNY said, should not be considered as an investment. u invest your money where there is SECURITY and INSURANCE este ASSURANCE, and most of all, least as in LEAST RISK. NOW THAT IS INVESTMENT

kasi diba, investment is about risk and return

eh yung insurance company itself nga hindi sya considered na LEAST RISK.

actually like what i "said" in my previous post, depende yan, depende sa plan. depende sa tao, depende sa insurance company---( medyo obvious na ito ano po?!) dapat hindi mga local insurance companies, ok yung SUNLIFE, kasi they also give you stock shares.

basta kapag LIFE insurace (depende sa plan) wish ko lang may mamatay ng MAAGA para maging katuwa-tuwa ang imong pag-hulog ba, ala e, ka-hirap nga mag-laba laba eh, para lang kumita ang mama ko eh.

tapos ang dapat, i-compute mo ang probability na ma-a-accidente or maging at risk and kung ano mang ininsure mo. :D

basta mahabang explanation pa yun eh, as in super. kailangan may mga financial terms and "insurance" terms pa. para malinaw talga.



basta ang ok lang na i-insure yung, asset or property na tulad ng factory na sana masunog , (mga SM SM ba! , mga migamol ba! marami pang iba), este mas at risk masunog, parang itong bahay namin, MEDYO DELIKADO LANG NAMAN, nyay! kakatakot.

MAS MATALINO ANG INSURANCE COMPANY KESA SAYO!

basta kakatamad eh, marami pang mga justification.

mag-tanong ka nalang sa Indian or Chinese. o kaya si lucio tan o kaya si henry sy.


ShhhhEEETTTT!!!! ang haba nito promise, may longest post ever.

kulit nyo kasi eh, wag nyo akong awayin ha!

matigas na tuloy bebel gum ko

:bubble:

[leelayce]

but then again, my opinion does/might not matter


you guys are decades older than me. u know better than that.

[denise]

ano pa ba mga ibang klase ng insurance aside from life, educ. property, body part, cellphone?

[KuyaDanny]

If statistics can be collected on a peril, its risk can be calculated, and insured against. So there just about as many kinds of insurance as there are risks. Some of the more common are:

fire, marine, theft and burglary, general and personal liability, business interruption, earthquake, kidnap and ransom, and fidelity.

[leelayce]

The terrorist attack is only one of the fortunate/unfortunate instances where we can take advantage of the insurance companies.


bwek bwek bwek


:p

[lupuS]

Maybe, but not always.

The following is some boilerplate provision typically present in property insurance policies:


This insurance does not cover any loss or damage occasioned by or through or in consequence, directly or indirectly, of any of the following occurrences, namely:-

(a) Earthquake, volcanic eruption or other convulsion of nature.
(b) Typhoon, hurricane, tornado, cyclone or other atmospheric disturbance.
(c) War, invasion, act of foreign enemy, hostilities or warlike operations (whether war be declared or not), civil war.
(d) Mutiny, riot, military or popular uprising, insurrection, rebellion, revolution, military or usurped power.

Any loss or damage happening during the existence of abnormal conditions (whether physical or otherwise) which are occasioned by or through or in consequence, directly or indirectly, of any of the said occurrences shall be deemed to be loss or damage which is not covered by this insurance, except to the extent that the Insured shall prove that such loss or damage happened independently of the existence of such abnormal conditions, not covered by this insurance, the burden proving that such loss or damage is covered shall be upon the Insured.


A clever insurance company lawyer can have enough arguments to wiggle his way out of paying a claim.

[leelayce]

see!

another reason not to get an insurance


tito lupus : pwedeng question? may ininsure ka ba?

[lupuS]

Meron.
my life (I won't tell you how much)
my car (comprehensive)
my house (fire, earthquake, liability)
contents of my house (fire, theft)
personal accident
medical

[zimdude]

the insurance claims on the New York City damage are going to be huge, not to say the total damage on the economy...

but leelayce I don't understand why you're anti-insurance... true, it should not be considered as an investment but that's not the point! the point is having a contingency plan for your loved ones if you die before your time. and we'll never know when that will happen.

[desdemona]

LiFe InSuRanCe NoT foR SiNgLeS

i work in a financial institution & i wouldn't recommend this to single people out there. why? because u wont benefit from this.
just save enough money for ur funeral.

u'll be better off if u
1. invest ur money to mutual funds
2.save 10% of ur income
3.buy retirement savings plan (its tax refundable)
4.spend ur diposable income
5.save for vacations/trip

;)

[leelayce]

bcoz it MAY work for OTHER people.

and may not work for some.

it's for people who want it to be safeRRR than sorry.

[zimdude]

I'd like the finance people to comment on desdemona. I think mutual funds are out of reach of the average Filipino workers - hey I don't even know about this - and I don't know about retirement savings plans either. Do you mean a pension plan?

leelayce, doesn't everyone want to be safer than sorry? unless you have a death wish or want to "live fast, die young."

oh, it looks like the insurance industry is going to pay off the victims of the US disasters - I guess while it will be a big hit on their finances, they see their moral obligation to not escape the clauses.

[leelayce]

zimdude mali pala. what i meant about "safer than sorry" was-- for people who depend or resort to insurance bcoz of the thing they thought was risk but is not risky at all

These people who (in my opinion) lack of what they call " financial literacy"


kasi minsan lugi ka sa insurance eh, instead of benefiting from them.

but like i said, depends on the case, person. etc.

kaya they think they are safer that way to have an insurance



:p

[zimdude]

who will manage your finances if you're (knock on wood) dead?

also I think most people would fall under the category of having no financial literacy... you could count me in there (for now).

[desdemona]

Originally posted by zimdude
I'd like the finance people to comment on desdemona. I think mutual funds are out of reach of the average Filipino workers - hey I don't even know about this - and I don't know about retirement savings plans either. Do you mean a pension plan?


sorry i dont know the counter part of mutual funds there in the phils. im not sure how much it cost. but u could buy one here.
it depends on what kind of mutual fund u want. prices range from $4-$50, its not bad right.
yeah rsp is a pension plan.

its not that im against life insurance. if ur married, u need to purchase one, if u have kids buy a good one. so u wouldn't leave them w/ nothing.

;)

[KuyaDanny]

Some arguments why life insurance might make sense for you:

1) When you die, all your debts become due. So if you owe money on your house, your car, or your credit cards, it doesn't matter if there are 10, 15, or 20 years to go on your contracts. When you're dead, they're due ASAP. Otherwise they could take your house or car away. If you don't have money set aside to pay these loans and don't want your loved ones scrambling to look for money when you're gone, life insurance proceeds can help pay for these debts.

2) When you die, the wealth you leave behind is taxable. If you don't want your loved ones to sell your assets to pay these taxes, life insurance proceeds are money that can be used to pay these taxes. Now, let's say you look for a clever attorney or accountant to help "reduce" these taxes for you, you'll still need to pay these people. You can use the life insurance proceeds.

3) If you get hospitalized for a significant period before you die, your loved ones will need money to pay the hospital and doctor bills. Do you want them to sell your assets to pay for these bills? Life insurance proceeds can help pay the bills so your assets are protected.

Do you see a pattern to these arguments? You should buy life insurance to protect the value of your assets, which can be reduced when you die. You can use other financial tools to make yourself rich, but you should use life insurance to protect your loved ones from getting poorer if you die.

Now, if you don't have any loved ones, that's another story. Maybe you should go to Love, Courtship, and Marriage. ;)

[KuyaDanny]

Some arguments why life insurance might make sense for single people:

1) Some single people have dependents who count on them for support. It could be parents, brothers and sisters, or even children. When the person dies, those dependents might still need some financial support.

2) Many single people eventually get married. So even if you don't need it now, you might want to get it anyway. Getting life insurance when people are younger (and healthier) means the premiums are cheaper.

[zimdude]

You can use other financial tools to make yourself rich, but you should use life insurance to protect your loved ones from getting poorer if you die.


That's the essence of what I was looking for.
Just like those insurance industry association ads I see in the foreign trade mags.


Now, if you don't have any loved ones, that's another story. Maybe you should go to Love, Courtship, and Marriage. ;)

Even then, there will always be Family, Friends and Society... I'd think there would be many PExers whose parents would spend a pretty penny if they would move on to the next world.

[leelayce]

It's like paying someone to take care of your finances.

Parang paying the restaurant to cook for you, coz u dnt know how to cook. NYek! ndi yata analogous yun hehehe.....


Some arguments why life insurance might make sense for single people:
1) Some single people have dependents who count on them for support. It could be parents, brothers and sisters, or even children. When the person dies, those dependents might still need some financial support.


Instead of paying monthly/annual premiums (kung ano pa man), the money should be set aside to purchase or be used for other investments that can "real"-ly help to add one's asset. Yung talgang kikita ka, ndi yung kapag namatay ka lang or some accident. Kapag ndi naman death insurance, after a certain year, u'll receive "this" amount say 5 million from paying premiums for countless obliging years. Ganun din yun eh, pinatago mo lang lugi ka pa sa inflation.


3) If you get hospitalized for a significant period before you die, your loved ones will need money to pay the hospital and doctor bills. Do you want them to sell your assets to pay for these bills? Life insurance proceeds can help pay the bills so your assets are protected

Eto, (in my opinion)patok ang insurance kapag medical ang pinag-uusapan, coz u never know how much you'll need for your hospital bills, baka kasi it will cost u more than u saved, tsaka mas mura kapag medical diba?




You should buy life insurance to protect the value of your assets, which can be reduced when you die. You can use other financial tools to make yourself rich, but you should use life insurance to protect your loved ones from getting poorer if you die.


But then again, there are more ways than we already know that can protect the value of our assets.and to protect your loved ones from getting poorer if you die. Tiba tiba ka pa.

[lupuS]

Originally posted by leelayce
Instead of paying monthly/annual premiums (kung ano pa man), the money should be set aside to purchase or be used for other investments that can "real"-ly help to add one's asset. Yung talgang kikita ka, ndi yung kapag namatay ka lang or some accident. Kapag ndi naman death insurance, after a certain year, u'll receive "this" amount say 5 million from paying premiums for countless obliging years. Ganun din yun eh, pinatago mo lang lugi ka pa sa inflation.


This strategy might make sense if you knew exactly when you would die. How many people have that knowledge? A 25 year old who buys a P1,000,000 life policy can be assured that his family will have P1,000,000 if he dies in one year, or whenever. Assume that instead of buying the policy, the 25 year old instead uses the premium money (a few thousand pesos) and invests it, then he gets killed in a plane crash at age 26. How much money will he have in investments? P1,000,000? I don't think so.

You see, investments presume some level of certainty (time and rate of return). Life on earth, however, takes away some of the certainty of time. Life insurance allows people to reduce the risks associated with this uncertainty.


But then again, there are more ways than we already know that can protect the value of our assets.and to protect your loved ones from getting poorer if you die. Tiba tiba ka pa.

I'd like to know what these ways are.

[leelayce]

lupus: just with that case, i can agree. sana nga mapakinabangan ng maaga/mabuti. sana maaga rin sya kunin sa piling natin

compute for the probability nalang




I'd like to know what these ways are.

u know better, u're JAZA diba :bigteeth:



sabi sa inyo eh, dapat d nalang ako nag-salita.
wag nyo na nga lang pansinin posts ko :tampo:

[lupuS]

I am not JAZA. I am JAZA regular guy. ;)

[zimdude]

well ordinary guys like me will stick with insurance,
while the finance people or those with fund managers or whatnot can go without it...

[aticus]

Actually, I'd not be too hasty to dismiss insurance as a poor investment.

I may be mistaken, but I believe the Philippine insurance code requires insurance companies to give guaranteed returns which amount to a minimum of 6% per annum, tax free. That's not too bad, especially since it also includes the life insurance benefit and will pay out that lump sum in case you die and leave your family without a father or mother.

Many insurance companies actually give returns significantly higher than 6%, on the average, with some in the double digits (10% or higher), and all tax free.

So with the insurance benefit and the rate of return, I don't see it as being too bad a deal, especially if you just keep your money in a bank like BPI (which gives very low deposit rates...).

[leelayce]

Banks' rate of return is 6% per annum on the average.

What about the interest rate that time deposits and money market offer?


Insurance companies can only start giving returns on a certain
time. By that time comes, inflation has already eaten your savings. Tutubuan ka muna ng pamilya't anak bago mo makuha yung pera.

While banks and other financial tools can offer higher rates of return.




Anyway, it's your choice and money naman. so i won't argue anymore.


:bubble:

[leelayce]

During this economic downturn, are there more reasons to get an insurance or otherwise?


parinig naman ng mga opinyon ng mga lolo at tito tita dito.







:)

[aticus]

Originally posted by leelayce
Banks' rate of return is 6% per annum on the average.

Anyway, it's your choice and money naman. so i won't argue anymore.


:bubble:

Sorry, dear, I may have to disagree with this... :) Many banks give rates as low as 2 to 3% for standard deposit accounts. To earn as much as 6%, you'd have to get a time-deposit account, or the amount you have must be very large.

For the average Filipino who doesn't have a million pesos, insurance is something that makes eminent sense, then, as it allows them to pay for a large policy through monthly installments, gives them life insurance protection, AND gives them higher rates of return than their meager sweldo might otherwise afford them. :D

[lupuS]

Originally posted by leelayce
During this economic downturn, are there more reasons to get an insurance or otherwise?


Maybe, maybe not.

1) If you feel that recent events have increased the risks of loss, it might be a good time to check your coverage so that risks which were previously excluded (like my acts of war example above) are now included. This will increase your premium.

2) If your business is slowing down, and some of your protection relates to potential losses arising from "damage" to your business, it might be a good time to reduce your coverage. For example, business interruption and similar coverage are based on certain revenue assumptions. If your revenues are reduced because of slow conditions, there is less revenue to protect. Another example is inventory. If you insure the goods in your warehouse or store, and as a result of slow business you are keeping less stock in the store/warehouse, you don't need as much coverage.

3) Obviously, if you are shutting down parts of your business because of the bad economy, there is less need to insure the assets which the business uses to operate. It might be better to get rid of the assets altogether.

4) If you are about to be laid off, some coverage (health, accident, etc) which you need and is now being funded by your company might stop after your employment ends. SO you might want to consider buying supplementary coverage to replace the coverage that will be lost.

[mart1]

Kuya Danny, Lupus and Aticus:

I still work for a finance and life insurance company (the one that uses "our signature is your assurance" as a tagline). I must say all your views are spot on. I wonder if anyone of you worked for an insurance firm before.

Leelayce:

I respect your views. Your are right. If you have the know-how and monies to invest, you may get better yields using other financial instruments. There are a few exceptions though (specially when a mutual company demutializes and a policyholder cashes in). I even had a maid who left because she got a P300,000 windfall from a competitor when it demutualized last year. Another exception is a dollar product that a certain french insurance company connected with a major bank is currently selling (I won't go into specifics for obvious reasons). The guaranteed and projected yeilds of this product is amazingly high (even higher than that of the bank).

Please know that our company recently sold a dollar endowment to a JP Morgan Investment banker three months ago. He placed around US 70,000 US with us. Now why would an investment banker buy a life insurance savings product? Two words. Forced Savings.

As easy it is to earn top dollar, that is, if your are on top of your game, it is even easier to spend. I remember a vice president of a local development bank who told me that she initially used a time deposit to fund the education of her child. Unfortunately, four years later, she need monies and started withdrawing from the account. Needless to say, there was a funding gap when the time came to pay for the college tuition of the child. Life Insurance heavily penalizes the "saver" if he/she preterminates the plan.

I always tell my friends (by the way I am not in sales okay), that there are certain future expenses in life that you MUST save for:

a. education
b. retirement
c. long term care (LTC)
- at age 65 and over, you will have difficulty finding health insurance. What you need is a fund to cover LTC need.
d. wedding expenses
e. travel

Personally, I will not gamble on intruments that will not "force" me to save.

Lastly, in 1996, a lot of businessmen used this line to delay their purchase of an Life Insurance Savings Plan - "My business is my insurance" - . As such, after '97 and '99 financial crises, the same group of businessmen started investing their monies with us. The moral of the story is that no one exactly knows how their business would fare in the future, therefore, NOW that you have the money, NOW that you are productive, you should put monies aside to cover expense eventualities of the future.

[KuyaDanny]

Originally posted by mart1
Kuya Danny, Lupus and Aticus:

I wonder if anyone of you worked for an insurance firm before.


I worked four years for Philamlife, but in their Investments group, not insurance operations.

[leelayce]

mart1: what insurance company is that?



:D

[KuyaDanny]

Hint: If I typed it here, the autocensor would blank out four letters.

[iceman1]

Insurance companies nowadays have better insurance package like Aegon and Allstate Phil(now PRU-Life Uk). They have this package where Planholders have both insurance benefits and savings fund too. It's like saving in the bank while you are at the same time covered. Considering the bank's interest rates plus witholding tax, Aegon's interest rates for example is 10.5% (at present) per annum (net of tax). And you can make withdrawals (not loan)thru your savings fund. You can use this plan for your child's education or as a retirement fund. So life insurance not only benefits your beneficiary but also you the Planholder. While you are still young this is a very good investment.

[Renee]

Its very true what aticus said about insurance not being dismissed as a good investment, because nowadays companies package their insurance plans not only as insurance per se lang..

There are a lot more benefits that you may get out of your insurance package even while you're alive, i.e Dividends, Annual withdrawals, Health or Maternity benefits.

So kung baga, your family or beneficiary will not only get some financial compensation in the event of your untimely (or even timely :() demise. But while you are living, you have the option of withdrawing the dividends on a regular basis or leaving it to accumulate into a hefty lump sum, which you could use to help you build up ur nest egg. Parang you even have a time deposit on the side. :)

Also, the younger you are when you invest, the smaller the amount you have to pay (and the bigger the returns you'll get).

And last of all... because my mom sells.. She's in Sun Life, btw..and from firsthand experience, (we've lost a family member kasi) I've seen how it helps to ease up on shouldering the bills.

(Sorry I couldn't resist plugging :D)

[mart1]

Leelayce:

Kuya Danny is right. I once typed the name of the company that I work for and the auto censor blipped the last four letters:rolleyes: . Have you worked for an insurance company before?

Kuya Danny:

What year were you with Philam? Are you still in field of investment banking? What do you do?:)

[KuyaDanny]

A long time ago, mart1. 1979-1983. Most PExers were still in preschool. :lol:

Back then Philamlife was still one word, and was the largest AIG life insurance subsidiary in the world. Of course the exchange rate was P11 or so.

I am no longer in insurance, but I am still in finance. My five partners and I run a small financial advisory and investment management practice.

[leelayce]

manong KD: ano na po ba yung insurance company na yan?

paki-PM naman pls.

di ko mahulaan eh


baka di ako makatulog nyan

[KuyaDanny]

http://www.jhancock.com/images/jhlogo.gif

Their signature is your assurance ;)

[zimdude]

I was gonna give a clue sana!

The association with "signature" is because Mr. Hancock, one of the U.S. revolutionary leaders, put his enormous signature on the Declaration of Independence.

[leelayce]

tama nga sabi ng sis-in-law ko


thanks zimdude!

[mart1]

Hey thanks guys for the free advertisement! hehe

Other things you may want to know about Mr. Hancock:

1. First governor of Massachusettes
2. President of the 2nd Continental Congress of the USA
3. His signature does appear in the Amercian Declaration of Independence. It was the most prominent of all the signatures that included Ben Franklin's, Thomas Jefferson and the like. Our logo is an exact stylized replica of his signature.
4. The word "John Hancock" is actually in the dictionary and is synonymous with the word "signature".
5. No, he is not the founder of John Hancock the company. Being a Boston-based firm founded in 1862, the company's founders decided to name the company after Boston's most prominent citizen.

and some information about John Hancock Financials USA:

1. Assests under Management of over USD 120 billion
2. One of the twelve corporations in the world to be a major sponsor of the Olympics
3. Very high ratings amongst the 4 rating agencies in the US (AMBEST, Duff & Phelps, Moody's and Standards and Poors)
4. Recently demutualized (Jan 2000). Opened at USD 17 per share and is now doing around USD 38.
5. Has won a number of CLIO awards for Advertising and recently was voted as one of America's Top 100 brands by the New York Times (only insurance company to be included in that survey)
6. Opened its Philippine subsidiary in 1997. Originally a joint venture with Solidbank. It is now owned 100% by the US company through its regional affiliate John Hancock International Services Inc.

Hope you guys don't mind. Could not resist the opportunity.


;)

[leelayce]

nako plugging. . . . .


bawal yan, dapat may cut si manong danny jan.




:D

[KuyaDanny]

:lol:

mart1, I will waive my commission if you can find leelayce a job. ;)

[leelayce]

Originally posted by KuyaDanny
:lol:

mart1, I will waive my commission if you can find leelayce a job. ;)

yes please, so i'll stop PExing and start making my life a productive one.

[mart1]

Kuya Danny: Since you generously waived you commission, I may have an opening for leelayce.

;)

Leelayce:

Can you fax me your CV? 751 81 66. Address it to me: Martin Ledesma

:)

[NelMania]

This thread has become long already. Sayang, I don't have the luxuryof time to read all the messages now. I just would like to comment on some points and give my thoughts to the starter of this thread.

There are many types of life insurance products. It can be a whole life (limited pay included), endowment, term and health. The conformity of the plan to a person shall depend on his/her needs. It is not true for all cases that you only get protection from life insurance. it can be both a protection and an investment vehicle. In the case of endowment plan, you can get the maturity benefit when you survive the maturity duration. You are actually investing your money, at the same time having a protection from some risks outside your control.

In the case of term insurance, the emphasis is only on the protection element. This kind of insurance does not build a cash value that's why this is the cheapest type of insurance. Now, if you are financially hard-up, but you like protection, you can have a term insurance.

If you give emphasis on your health and hospitalization, you can opt for health insurance. Due to the demand of time and recent trend, this can be offered as a rider to a whole life plan.

On the thought of life insurance as against bank in terms of yield, well, life insurance has a guarantee yield (cash values for whole life and endowment) plus the fact that you are insured. On the other hand, bank has no protection against some contingencies concerning your life. But it protects your fund via PDIC which is limited only to 100,000. All I can say is the investment of the funds depends on the discretion of the person which is dictated by his needs.

Later ulit. Thanks ha :)

[KuyaDanny]

leelayce:

You really don't have to stop PExing. We were looking forward to your posting more often about your experiences at work. Besides, with a salary you can afford to pay for more Internet time. :lol:

mart1:

Thank you. You're a good man.


NelMania:

You're welcome. Actually, we should thank you for what you wrote.

[leelayce]

oh god!


kuyadanny i wish i could stop PExing after getting a job, and that's only IF i get myself one.




mart1 hi! is this for an insurance company? :)

[mart1]

Leelayce:

Yes and no.

If I see a position that would fit your qualifications in our company, then I will recommend. If not, I will farm out your cv to friends who may need your services.

;)

Kuyadanny: wish I had a kuya like you hehehe:D

[leelayce]

mart1 ok then. i'll fax it to you.


yeah thanks to my manong danny

inangkin daw ba bigla, MY manong danny :lol:


correction, thanks to our kuyadanny.

kahit nga kuya ko hindi ako matulungan EVER!!!

kahit sa ano pang bagay no!

[KuyaDanny]

O ayan, leelayce, ha? Wag mo nang palampasin yan.

[mart1]

Leelayce:

I have not received your cv? Have I given you my fax number?

[leelayce]

mart1 scared kasi ako eh


i'll fax it to you on monday. ok lang?




:bubble:

[racho]

(Original post was deleted)

This thread is for discussing the advantages/disadvantages of insurance. It is not for selling insurance. If you want to sell, use Classifieds. Thank you. - KD

[racho]

You're welcome KD!

I really believe in the product that I am using (which is why I got multiple policies from the same company, and I'm only in my 20's.)

Sorry for the blatant advertisement. hehehe. It happens when you get a little too excited.

If anyone is interested in what I have to offer, please contact me.

It may or may not be for you, but it is worth considering.


6400aday@GetResponse.com


David Racho

[KuyaDanny]

David,

I do not mind discussing new insurance products at all. I always welcome new information. If you are able to discuss this product which you are so proud of, without resorting to sales tactics, you may do so here where everybody can ask questions and maybe learn in the process.

[MeAko]

If you are to buy life insurance, talk to a professional life insurance agent (prefarably MDRT member), the person should be able to give you excellent advise and suggestions like:

1. Ditch a whole life plan. You won't be needing coverage when you're in your 60's or 70's. Get a term/term+endowment life insurance plan instead.
2. Buy from the stable and big guys: PhilAm, Insular, Ayala, Sun, Prulife, Cocolife, Manulife
Heck!! You're paying thousands of your hard-earned money and all you get is a piece of paper and a promise to pay. You need to know that 10, 20, 30 years down the road, the company is going to be there, kahit na resigned na ang ahente mo!
3. Do not put off buying. Your health is not in your hands, if something were to happen to you or you were to get a disease, you might NOT be able to buy life insurance anymore.

Instead of paying monthly/annual premiums (kung ano pa man), the money should be set aside to purchase or be used for other investments that can "real"-ly help to add one's asset.
This statement is premised on two UNCERTAIN things:
1. That you will successfully and actually set aside money year after year. It's so easy to conveniently forget, isn't it?
2. That nothing will happen to you for the whole target range of time that you will be trying to save and invest. parang hindi nakapasok sa equation ang uncertainty of life and health

Kapag ndi naman death insurance, after a certain year, u'll receive "this" amount say 5 million from paying premiums for countless obliging years. Ganun din yun eh, pinatago mo lang lugi ka pa sa inflation.
Life insurance is sold, not because someone may die, it is sold because someone must continue living. Wives don't believe in insurance--but widows do.

Your assumption that the P5M plan has been paid for "countless" of years is a painfully mistaken one. The general product available now, for an endowment term insurance of 20 years is:
For a 30 year old na coverage of P5M:
Annual Premium niya: P250,000 (est)
Payment years: 9-10 years (self-liquidating)
Total cash outlay: Roughly P2.5M (in 9-10 years)
After 20 years: (if he survives) Entitled to P5M+whatever accumulated dividends (roughly mga P4-5M din). If he dies ANYTIME within the 20 year period, his beneficiary will be entilted to P5M+whatever dividends have accumulated.

Sa insurance naman kasi, for every argument that an agent will come up with, clients and lay people will always have a counter-argument. Insurance and the selling process is not a battle of the smoothness or the strength of arguments and logic. Insurance is plain and simply about the financial security, the economic certainty of the wife and the kids; so that if anything were to happen to daddy, they would have something to tide them over. Life insurance is ALWAYS paid! If the bread winners won't pay for it NOW, the widows and children will painfully pay for it later...

Most men don't do anything wrong; they don't do anything, that's what's wrong! :)

[Maxee]

MeAko, i admire your conviction about why people should get a life insurance and you're right--life insurance always gets paid whether or not we buy it. you pay it the easy way now or your family pays for it the hard way later.

i would just like to comment on the technical terms you used. you said we should ditch whole life plans and instead get a term/term plus endowment. using the word 'endowment' here in combination with a term plan would be misleading; i'd rather use the words 'fund benefit' or a 'side fund' instead. also, the general product that you used as an example is a whole life plan because it has dividends. a term with a side fund doesn't have dividends; instead it earns interest. but you're right--people don't generally know that a whole life plan is very much inferior to a term with a fund benefit. sadly, most agents don't really tell their prospective clients this... probably everyone who owns a whole life plan thinks that they own their cash value when in fact it goes back to the insurance company when they die...


maxee

[MeAko]

Originally posted by Maxee
i would just like to comment on the technical terms you used. you said we should ditch whole life plans and instead get a term/term plus endowment. using the word 'endowment' here in combination with a term plan would be misleading; i'd rather use the words 'fund benefit' or a 'side fund' instead. also, the general product that you used as an example is a whole life plan because it has dividends. a term with a side fund doesn't have dividends; instead it earns interest. but you're right--people don't generally know that a whole life plan is very much inferior to a term with a fund benefit. sadly, most agents don't really tell their prospective clients this... maxee

First, for the sake of clarity, let us define our terms:
Endowment A cash value policy that sets a specific time at which the cash value will equal the death benefit. If you buy a $10,000, 20 year endowment policy, you will immediately be insured for $10,000. If you are still living at the end of 20 years, you will receive $10,000 in cash. In essence, an endowment plan IS a an insurance policy for a specific TERM or amount of time

All these "side funds" "fund benefits" etc etc..are extracted from the policy's dividends. Depending on the semantics of the insurance company, dividends is more or less interchangeable with interest. Dividends=interest earned from your policy. When you have a time deposit placement with a bank, you earn interest, when you have life insurance policy, you earn dividends. Pareho lang yun.

The "general product" that I quoted is an endowment insurance product for 20 years. It is not whole life. It is an incorrect assumption to say that when a product has dividends, it is whole life.

Whole life plans mature when people reach the age of 99 (in general). When life insurance policies mature, it means that the life insured has survived the period and the insured amount becomes payable to life insured.
Meaning:
If you get a P5M whole-life plan and you survive until 99, YOU will receive the P5M plus any dividends or interest earned.

probably everyone who owns a whole life plan thinks that they own their cash value when in fact it goes back to the insurance company when they die...

The above statement was the reason for my subject line. Please avoid posting statements like these. It comes off as "factual" when in fact, it is mistaken.

Cash values NEVER go back to the company, cash value is the value of your life insurance policy. The policy owner is YOU, not the company. In fact, you can use this as collateral for a loan.

Hope I don't sound like the tribal dude in the Pioneeer Alliance commercial

[burman]

Hey just wanna ask if you guys ever heard of the b-sure way ? it's like networking but has like an insurance thing with it, if any one of you knows it, can you please explain and if it's a the real thing to invest in it.

[MeAko]

I have heard of a number of companies that are engaging in multi-level marketing with insurance components.

I would have to frown on all these. Insurance, as I have said is not something that you should "play" around with, it is, after all the economic security and future of your loved ones. I would shudder to think that at the time my family would be needing the most help, they would be claiming from a MLM company...yikes...

[Maxee]

Originally posted by MeAko


All these "side funds" "fund benefits" etc etc..are extracted from the policy's dividends. Depending on the semantics of the insurance company, dividends is more or less interchangeable with interest. Dividends=interest earned from your policy. When you have a time deposit placement with a bank, you earn interest, when you have life insurance policy, you earn dividends. Pareho lang yun.

i beg to disagree. there *is* a difference. my former company's plan didn't earn dividends (bec. it was a term plan) but it earned interest (through the side fund). remember, a term insurance, which is purely protection, does *not* have any cash value, so how can it earn dividends?

Cash values NEVER go back to the company, cash value is the value of your life insurance policy. The policy owner is YOU, not the company. In fact, you can use this as collateral for a loan.

with all due respect, Meako, this just isn't true at all. i can walk you through a cash value proposal and show you where your cash value goes. yes, you can loan against it but when you die, it doesn't go to you. (have you ever thought how funny it is to loan your own money? it only earns between 4-6% p.a. but when you loan it, they charge you between 12-14% p.a.) look at the numbers carefully, especially in the death benefit column and the cash value column, and you can clearly see that the death benefit is only made up of the sum assured and the dividends--NO cash value included.

btw, cash value is not the value of your insurance policy. well, again, it may be a case of semantics here. the value of your policy is the Sum Assured, at the outset at least, so if your sum assured is P1M then you're covered for P1M; and if you die a month after you got your policy when your cash value policy still hasn't earned any cv, then the value of your policy is P1M.

Hope I don't sound like the tribal dude in the Pioneeer Alliance commercial

and i hope i don't sound like one as well :) , but when one works for a company with a non-trad product (like i used to do), part of our job was in educating the public on better alternatives. and after having worked with both trad and non-trad products, i know there *is* a big difference... :)


maxee

[MeAko]

Originally posted by Maxee
i beg to disagree. there *is* a difference. my former company's plan didn't earn dividends (bec. it was a term plan) but it earned interest (through the side fund). remember, a term insurance, which is purely protection, does *not* have any cash value, so how can it earn dividends?

with all due respect, Meako, this just isn't true at all. i can walk you through a cash value proposal and show you where your cash value goes. yes, you can loan against it but when you die, it doesn't go to you. (have you ever thought how funny it is to loan your own money? it only earns between 4-6% p.a. but when you loan it, they charge you between 12-14% p.a.) look at the numbers carefully, especially in the death benefit column and the cash value column, and you can clearly see that the death benefit is only made up of the sum assured and the dividends--NO cash value included.

btw, cash value is not the value of your insurance policy. well, again, it may be a case of semantics here. the value of your policy is the Sum Assured, at the outset at least, so if your sum assured is P1M then you're covered for P1M; and if you die a month after you got your policy when your cash value policy still hasn't earned any cv, then the value of your policy is P1M.

and i hope i don't sound like one as well :) , but when one works for a company with a non-trad product (like i used to do), part of our job was in educating the public on better alternatives. and after having worked with both trad and non-trad products, i know there *is* a big difference... :)

maxee


Thanks for the clarification maxee. I just don't want people to get the impression that Life Insurance companies "cheat" them or meron mga "hidden" things ang life insurance...

Life insurance is a good thing, its a beautiful instrument that any responsible father should take into consideration.

Life insurance is at its best, when you are at your worst.

[Maxee]

Originally posted by MeAko



Thanks for the clarification maxee. I just don't want people to get the impression that Life Insurance companies "cheat" them or meron mga "hidden" things ang life insurance...

Life insurance is a good thing, its a beautiful instrument that any responsible father should take into consideration.

Life insurance is at its best, when you are at your worst.


you're welcome, Meako. i don't want to sound controversial here, but unfortunately, there are things that life insurance agents don't tell prospective clients. let's face it, between two products an agent would normally recommend the one that gives him/her the higher commission. sad, but true. this is precisely the reason why pure endowments were so popular in the past even tho it cost the most.

but you're dead right (pardon the pun): it is a good thing and it's better to have a life insurance plan, no matter how flawed, than not have one at all. it fills in a special need that no other financial instrument can duplicate--if there were no life insurance, people would still invent something like it because it's a unique product for a particular need.

if there are still doubters out there, allow me to paraphrase this adage: wives may not believe in life insurance but widows do.


maxee

[diwata28]

---bump---

[tRiStAn]

I am new in the insurance industry, a little over three months, but I have come to appreciate what it can guarantee and do to everybody in terms of financial security and yes, investment.

It came as a surprise to me that many people consider life insurance a waste of money when in fact, it can be a very good investment venue. For example, the more popular products today are endowment products at certain retirable ages, i.e., 65 and 85. These are products that guarantee retirement benefits. In addition to that, products that are more geared towards generating favorable interest returns are becoming more and more popular. One of these include this one product which is includes a fund rider with a guaranteed effective annual rate of 7% and a minimum annual premium of only Php 600. Obviously this product is more of a direct investment than a life insurance. Not surprisingly this product is marketed more to the affluent sector since the maintaining balance of the fund is Php 1 M.

Just a comment on the issure of agents withholding information or even giving erroneous information on products. There are many cases when clients come to us complaining that they thought they were sold a permanent plan when in truth, they were sold a term plan. It was their agent who told them that they just had to pay for five years and then they will get the benefits on the fifth anniversary date. Which is totally crap since by virtue of it being just for protection, it does not earn cash values. Insurance companies should see to it that clients know what they are buying, of course without compromising their sales. But that is up to them to maneuver.

A final comment on the products in general.

Life insurance products come in different packages. Clients just have to choose whichever suits their present and future financial needs. Usually young people buy term insurance products since these are cheaper. Those who are counting on retirement benefits buy endowment products. Some of the more affluent of us buy those life insurance with riders that can generate high interest returns. Kanya-kanyang diskarte na depende sa pangangailangan. Life insurance companies today are even designing new and very flexible products to adapt to the rapidly changing financial need for protection and security.

And life insurance need not be a foreign language when you know where and how to ask. :lol:

[KuyaDanny]

Hey! I know that guy! :lol:

Henceforth, please address your questions to tRiStAn. *okay*

[dac]

lets put it this way, youre placing a bet that youre gonna die in the near future and get a huge sum of money from the company.

the company is betting that youll live a long life before you get to see your money.

You buy an insurance not for investment.
You buy an insurance for insurance sake. (protecting your family from an ecomonic loss if they are dependent on you)

if you have the money and you want to earn a living, mag business ka. mas malaki kikitain mo.

insurance is insurance.

[tRiStAn]

Noted.

But with what you are saying, I do not see any reason why I should prefer a permanent plan to a term plan when all I am after is financial stability for my dependents in the event of my demise. Why buy an endowment instead of a whole life? If the reason does not revolve around investment, perhaps I am in the wrong business.

[manoyfrancis]

Originally posted by lupuS
Maybe, but not always.

The following is some boilerplate provision typically present in property insurance policies:



A clever insurance company lawyer can have enough arguments to wiggle his way out of paying a claim.

after the sept 11 tragedy, insurance companies of AIG still gave what they promised: when the insured died. even though this is an act of war, beneficiaries still get their benefits from this insurance companies.
this is true

[tRiStAn]

I just closed a deal! No, I'm not an agent but I was able to sell a plan to a friend. :D

[tolstoy]

As of 2000, only a little over 13% of Filipinos have a private life insurance policy.

All new cars as soon as they leave the casa are covered with comprehensive car insurance, against theft, accident, etc..

Yet most fathers and mothers, even those driving these cars, are risking it all without life insurance.

Can you give me some insights why? This will help me understand the Filipino's sentiments on life insurance.

[CLY]

Japan's population is 90% insured. Japs really believe in the value of insurance and i think most of them can afford to buy.

In our country, only 10-13% lang. minus mo pa yung mga nag-stop paying because of financial problems. I guess kaya ganyan, sa population natin mga 10% lang talaga has the capability of buying insurance because of financial problems.

I used to not believe in life insurance until the father of a friend passed away. His dad was insured for quite a BIG BIG sum of money that he was able to buy an expensive condo unit at Makati and a 4X4 SUV and still pay the hospital and funeral expenses and still live a lifestyle as if their father were still supporting them financially. That made me think twice. I want the same thing to happen to my family should something go wrong. that's reality, life is uncertain. The bills dont stop when the paycheck does.

[tolstoy]

My Dad was taken away when I was 13.
Fortunately, he was insured, which paid for the house mortgage and overnight we had a roof over our heads.
There was money left over for our education in the best schools (at least for a few years) and money to lend to others.

I have been a beneficiary and I help others plan, only sometimes I come across reasons that are truly out of this world.

[Bea19]

bump ko lang itong thread na ito.i suggest to new employees na to make insurance protection one of their priorities habang in good health pa kayo at hindi kayo rated.kumbaga eto na pamana nyo for your kids in the future.Tska don't be satisfied with just P1m na coverage in a few years sobrang liit na lang ng value nito :)

[WhItEFox]

what is the best insurance package today for life insurance? (if there is any)


I have term + endowment insurance from Sunlife (both ill pay for 10 yrs) and I want to compare what the other insurance companies are offering to consumers.

[crepesuzette]

what's the most reliable insurance company dito sa pilipinas? meron ba silang insurance plan for foreigners that living in the phil?

[pauster007]

I'm going to talk to an insurance agent (sunlife) tom. I'm planning to get a life insurance. what are the questions that I need to ask? Medyo naguguluhan ako sa mga terms na nababasa ko dito like yung mga type of insurance na term tapos meron naman whole life etc...whats the diff?

[mac_bolan00]

one simple, inescapable truth:

you're more useful to your loved ones dead than alive.

[froshie1]

I'm going to talk to an insurance agent (sunlife) tom. I'm planning to get a life insurance. what are the questions that I need to ask? Medyo naguguluhan ako sa mga terms na nababasa ko dito like yung mga type of insurance na term tapos meron naman whole life etc...whats the diff?


eto pagkakaalam ko

pag term insurance - certain X number of years ka lang covered ng insurance mo.

whole life - buong buhay mo covered ka. usually magtatapos ang payment pag whole life pag 50-55 years old na. Maski after 56++ ka na eh covered ka pa rin ng insurance mo.

[dac]

when we think about insurance..we think about how much money the beneficiaries are gonna get when the policy holder dies...

the amount youre gonna get is dependent on how much you paid the insurance company...the Premium paid over x years will determine face amount of policy.

so before you get dazzled by the amount of money your family will get if you pass away...check out how much you have to shell out for the premium for how long......

term life..you pay around 10 yrs...whole life..i guess that means you pay as long as you live till you hit a certain age...

TIP: you can get a term life..be insured for 20yrs..then once policy matures...fork over a small sum of the insurance money youre gonna get and roll the policy to whole life without paying so much....

like i said... insurance for insurance sake..not for business.

[dac]

regarding the riders attached to your policy..you dont have to buy all of them cause it only increases the insurance premium you have to pay....ADB accidental death benefit Rider doubles the Face amount if you die of an accident.....

TIP: ask the insurance company what ACCIDENT means.... this is where the technicality differenciates the big boys from the little boys.

so much of the contract is techinical so you need to rely on a trustworthy agent to explain to you all the stuff in fine print...

like what should you choose ..Revocable or Non Revocable beneficiary? it may not matter now but it will someday when your policy matures and youre still alive....

[o8si5]

what's the most reliable insurance company dito sa pilipinas? meron ba silang insurance plan for foreigners that living in the phil?


Yes , there are insurance plan for foreigners. But they(foreigner) may be required to show or present an ACR.

[newkid]

I believe there is no need to get insurance if you are rich. But the rich can still get one *okay*

[froshie1]

I believe there is no need to get insurance if you are rich. But the rich can still get one *okay*

pare, mas magiging mayaman nga ang mayayaman pag kumuha sila ng insurance.

[reward]

nakakuha ako ng life insurance sa friend kong taga sunlife, 3,160 quarterly ang bayad ko for 10 years..so 24 ako ngayun, syempre matatapos ako ng 34 sa 2016..(ang tagal nun)..pero sabi naman ng agent ko after ko daw magbayad ng 10 years ay covered na raw ako hanggang age of 65 to 77...(buhay pa kaya ako nito)... i hope na tama ang naging desisyon ko..:D

[alex_yuppie]

I'm a Philamlife employee (but not in Sales.. I'm not an agent).. if you're interested in knowing more about our products, I could refer you to some experts. Don't hesitate to e-mail me: Alex-T.Molina@AIG.com

[Ano_ni_moose]

I noticed some of my officemates talk to some insurance agents during lunch. I am wondering if it's about time for me to get one too? Is there a good or ideal time to get into this stuff? Or should I wait until I become stable? Thanks

[margarethph]

sorry for the late post..

life insurance is not a waste of investment naman. it would be good to get this actually. better if you're younger, you get it cheaper and better return.

it is always wise to invest in the top 3 companies in the industry. so check their status in office of the insurance commission. you might get it cheaper than some insurance companies, but think about it alot. baka wala na sila after a few years. better kung multinational company.

i'm a sun life financial agent and financial planner. if you're interested, pls email me at margareth.s.demesa@sunlife.com.ph or text me through 0917-8399015 so i could reply to you sooner.

=)
meg

[Bowl Tumae]

sorry for the late post..

life insurance is not a waste of investment naman. it would be good to get this actually. better if you're younger, you get it cheaper and better return.

it is always wise to invest in the top 3 companies in the industry. so check their status in office of the insurance commission. you might get it cheaper than some insurance companies, but think about it alot. baka wala na sila after a few years. better kung multinational company.

i'm a sun life financial agent and financial planner. if you're interested, pls email me at margareth.s.demesa@sunlife.com.ph or text me through 0917-8399015 so i could reply to you sooner.

=)
meg


hi meg!

What are your thoughts on VUL? Would you recommend them over the traditional life insurance policies? :)

When should I get them and when should I avoid them.

Thanks in advance for the response :)

[business_guy]

sorry for the late post..

life insurance is not a waste of investment naman. it would be good to get this actually. better if you're younger, you get it cheaper and better return.

it is always wise to invest in the top 3 companies in the industry. so check their status in office of the insurance commission. you might get it cheaper than some insurance companies, but think about it alot. baka wala na sila after a few years. better kung multinational company.

i'm a sun life financial agent and financial planner. if you're interested, pls email me at margareth.s.demesa@sunlife.com.ph or text me through 0917-8399015 so i could reply to you sooner.

=)
meg


What are the top 3 companies in the industry???? I have Ayala Life Insurance. Pension plan. I'm young, so mababa ang premium ko....

[~shalala~]

I think Ayala Life is one of the best choices among the insurance companies as of now. I bought an educ insurance for my little boy from Ayala Life, and my husband, life insurance. I'm thinking whether I should get an insurance as well. Perhaps a pension plan. hehe. :teehee:

[fretetet]

late post ako pero post naren anyway. Ako single but still got a life insurance. Mahirap na baka mamatay ng maaga, at least may pambayad parents ko ng mga kautangan sa credit card ko hihihi. *okay*

[xxtoyxx]

Hello,

Related po sa insurance ito, and I want to seek help. My father has this life insurance from Pet Plans and just a few payments short to complete the premiums, the company kind of folded. Now they keep on telling my father that they will reimburse a certain percentage of the premiums paid, pero puro broken promises naman sila on the date.

Since nasa abroad ako and nasa probinsiya naman sila, I am not sure how to somehow escalate the situation to a commission or agency in our government handling such cases. Actually, meron din akong due na rebate from my education plan from the same firm, hindi rin namin maclaim. I was able to claim my whole UP education with this plan, plus a bonus nung nag graduate. Stipulated sa contract na I can get 20% of the total premium paid after 5 years makagraduate.

Again, help naman where we can escalate this. Or probably any contact details ng Pet Plans, di ko sila mahanap online. Kahit siguro in writing I will try to make a plea with them. Sayang yung naibayad ng tatay ko.

[bankerII]

A good reason why people take insurance?

it has something to do with insecurity. so people let others manage their money and future just like what I did before.

and I've been burnt several times *peace*

[anabea]

xxtoyxx,

You may want to try to look for Lifetime Plans, that is PET Plans' new name. It is still under the Yuchengcos, and Grepalife Group of Companies, I think. I hope this info can be of help.

I am a career agent from Sun Life. If you have questions regarding insurance. Please redirect your queries at my email its smm2769@yahoo.com. Best regards.

[metropolitan]

xxtoyxx,

You may want to try to look for Lifetime Plans, that is PET Plans' new name. It is still under the Yuchengcos, and Grepalife Group of Companies, I think. I hope this info can be of help.


FYI, Lifetime Plans was Pacific Plans of the Yuchengco Group (RCBC). PET Plans was not affiliated with the Yuchengco Group.

[business_guy]

Allergic na ba kayo sa insurance companies ni Yuchengco's (lol)???? Even though RCBC is one of the most stable banks and it is owned by Yuchengco's, I still can't imagine that their insurance business was not that good. I think Yuchengco's have to balance their field of business. They need to be diverse in business field, kasi napapansin ko sila, puro insurance business ang focus nila aside from banking. A Great example of a great and balanced companies in the country are the Ayala's. Every business arm ni Ayala is marked 'above average to superior profitability.' Combining all of Ayala's business fields, their company is the most profitable in the country. Kaya nga almost all of my financial placements ko are in Ayala Companies: Life Insurace, Pension Plans, Car Insurace, Accidental Insurance ko all under Ayala Plans, My major placements and my family's major placements are all in BPI. Mobile ko under Globe. Car ko Honda, Landline ko Globelines (though I do have PLDT Landine), etc. (lol)....

[metropolitan]

Allergic na ba kayo sa insurance companies ni Yuchengco's (lol)???? Even though RCBC is one of the most stable banks and it is owned by Yuchengco's, I still can't imagine that their insurance business was not that good. I think Yuchengco's have to balance their field of business. They need to be diverse in business field, kasi napapansin ko sila, puro insurance business ang focus nila aside from banking. A Great example of a great and balanced companies in the country are the Ayala's. Every business arm ni Ayala is marked 'above average to superior profitability.' Combining all of Ayala's business fields, their company is the most profitable in the country. Kaya nga almost all of my financial placements ko are in Ayala Companies: Life Insurace, Pension Plans, Car Insurace, Accidental Insurance ko all under Ayala Plans, My major placements and my family's major placements are all in BPI. Mobile ko under Globe. Car ko Honda, Landline ko Globelines (though I do have PLDT Landine), etc. (lol)....

well business strategy ng mga Yuchengco iyan, lets see kung kakayanin in the long run. however madami namang big companies na single industry or sa financials lang concentrated like Metrobank, big insurers like Manulife, Sunlife, giants like HSBC, Citigroup.

[business_guy]

well business strategy ng mga Yuchengco iyan, lets see kung kakayanin in the long run. however madami namang big companies na single industry or sa financials lang concentrated like Metrobank, big insurers like Manulife, Sunlife, giants like HSBC, Citigroup.

Yes you're right. Ibang level na yung HSBC and Citigroup. Even though I-merge lahat ng banks sa Asia, di pa rin kakayanin ma-dislodge ang HSBC and Citigroup. Honeslty, even though medyo pumapel si Mark Jimenez (though I believe his good intentions for that matter), it is a shame on Yuchengco's part that an outsider volunteered to finance some of their plan-holders. Pinakita pa yun sa TV ni Mark Jimenez Posting his two BDO checks amounting P20 million each just to finance some of the plan-holders who extremely needed a fund for their schooling....

[woodiwoodpecker]

I talked to a Sunlife agent last week.

I was supposed to get an equity mutual fund. But he offered to get a VUL insurance, which I think is life insurance + investment on sunlife's mutual fund.

Can somebody here explain more about it? Thanks.

[business_guy]

I talked to a Sunlife agent last week.

I was supposed to get an equity mutual fund. But he offered to get a VUL insurance, which I think is life insurance + investment on sunlife's mutual fund.

Can somebody here explain more about it? Thanks.

I think you have to speak with an authorized agent of Sunlife. Don't hesitate to ask anything to them. If you find the product is confusing, just keep on asking, after all, it is a long time investment for your future. Different insurance companies does offer like what Sunlife offers, but the strategy each companies is different, so better an agent will do more of the explain to you....

[nutrilicious]

what type of insurance would you recommend? whats a good insurance company? they say its wiser to invest ur money in insurance than savings due to inflation...

[bluesoda00]

getting an insurance depends on three things: your capacity to pay (i.e. where will you get yuor funds, will it be annula or semi-annual) your future goal (long term goal i.e. schooling of kids, travel abroad, lifetime security, retirement etc.) and what benefits you expect during and after maturity of your policy (i.e. you can loan from yuor insurance with very little interests or you get certain percentage of the face amount in a certain timeframe). you can check manulife, new york life, axa to name a few. good luck bro!

[alex010101]

Ayala Plans, a subsidiary of Ayala Life. Insurance is way better than savings, as long as your insurance company is a reputable company. Ayala Plans have a 'lite' plan which means you'll have to pay your premiums for 5 years and be insured for either 10, 15, 20 or 25 years from as low as 50000 plan to 2 million.

[la_flash]

How about Sunlife? I have one right now. It's a ten year plan.

Have anybody here tried Sunlife? Is it good investment?

To tell you frankly, I decided to get one since every manager from our company have one. :lol:

[business_guy]

FYI, Pet Plans is under rehabilitation status after court decision. Di pa masyado kalat sa media. For those Pet Plan holders, inquire your policies now....

[ahock]

I have SunLife and Manulife. Can you guys share which is best and products as well. I have the Fastrac ng Manulife which I'm paying for 5 years. Life din sya tapos pag buhay kapa say 65 you can get a lump sum for retirement benefits. Ganito din sa Sunlife. 10 years nga lang vs sa manulife na 5 years. Kaso sa sunlife parang maliit yung face amount ko.... Kayo?

[business_guy]

I have SunLife and Manulife. Can you guys share which is best and products as well. I have the Fastrac ng Manulife which I'm paying for 5 years. Life din sya tapos pag buhay kapa say 65 you can get a lump sum for retirement benefits. Ganito din sa Sunlife. 10 years nga lang vs sa manulife na 5 years. Kaso sa sunlife parang maliit yung face amount ko.... Kayo?

You've made a good choice of insurance companies. No offense meant, but as much as possible, never invest to a local insurance companies. Look what had happen to CAP and Pet Plans....

[foolcha]

what type of insurance would you recommend? whats a good insurance company? they say its wiser to invest ur money in insurance than savings due to inflation...

I don't agree that insurance is investment, it is insurance. I suggest you buy a term insurance and invest the difference but if you want to have cash value invest in a whole life but i suggest don't invest in Variable Unit Link (VUL) because there are so many fee's that will eat up your potential earnings unless you want convenience.

[bluesoda00]

different strokes for different folks as they say...

[ahock]

term insurance is life insurance???? What is common is life with option for lump sum when you retire.... This is what I am getting for now....

[foolcha]

yes ahock term life insurance is an life insurance http://en.wikipedia.org/wiki/Term_life_insurance

your life insurance is probably is a wholelife insurance but i can't be sure dami na kasing variation ng insurance.

[King Louis XVI]

I don't agree that insurance is investment, it is insurance. I suggest you buy a term insurance and invest the difference but if you want to have cash value invest in a whole life but i suggest don't invest in Variable Unit Link (VUL) because there are so many fee's that will eat up your potential earnings unless you want convenience.

What do you mean by "buy a term insurance and invest the difference " ?

[foolcha]

King Louis XVI

In life there are 2 things that could happen either you die too soon or you live too long. to address the first problem you buy life insurance and to address the 2nd problem you must have investments.

what i meant was that you should only buy term insurance because it is the cheapest form of life insurance then you should also build assets buy investing the difference.

[tidus1203]

Personally I don't believe in life insurance. But I definitely believe big time on investment. Investment is a must given our current fiat money system, people who don't invest are getting poorer by the day when our central bankers continue to run the printing presses.

[foolcha]

@ tidus1203

I agree with what you say about investments, however just like what i said that when your young (breadwinner) you have a BIG responsibility to your family. what do you think would happen if you die without any investments? for sure your family will suffer not just emotionally but financially so to answer for that you buy life insurance so in case you die your dream for your family will come true (e.i. college of your brother or a family home).

[tidus1203]

I still don't believe in life insurance if I die then my family will have all my investments. And the money that was supposed to be on life insurance I probably invested in equities and they now own it if I pass away. I don't need an insurance company to take care of them they are smart enough to handle money.

[foolcha]

Yes i do understand what you mean. but what if you DIE and you still don't have enough investments/ASSET? how would you take care of your FAMILY?

That is also my reason that my suggestion is to only buy TERM insurance and to INVEST the rest of your money in INVESTMENTS.

[tidus1203]

Well the odds are always in their favor so like gambling I am gonna gamble on the idea in investing the money in equities instead of life insurance and I don't die. If you don't die and you invest in life insurance talo ka pa ng inflation given its substandard returns. That said even if I die my family will still get substantial returns on equities.

Bottomline I am not a fan of life insurance and I don't have one. But I do encorage property insurance like house and car insurance.

[foolcha]

maybe you have enough ASSETS to provide for your family in case something happens, however for an average family it is a must if they are still building there ASSETS. once your asset column is increasing the need for life insurance also decreases unless you'll use your life insurance for ESTATE purposes.

[pgma]

i heard term insurance is just a waste of money. is it true?

[foolcha]

Depends, my POV it is whole life insurance/Variable Unit Link that is a waste of money that is why i preferterm insurance because it is the cheapest/simpliest life insurance you can buy.

[hisana]

So how cheap is term insurance? Parang ayaw kasi nung agent ko to discuss this e at pina-ikot-ikot lang ang discussion, so I wasn't able to squeeze too much information out of her :lol:. Kunwari for a 25-year-old for a face amount of 500k? I'm paying only around 15k annually for this, so na-iintriga ako sa term insurance kung mas mura pa.

[foolcha]

@ hisana

I'm no life insurance agent. :) i can't answer that but to give you an example in our company we have a Group Term Life Insurance which cost P100/unit per annum, 1unit = 50,000 coverage. so if you buy 500,000 coverage you'll only spend around 1,000 per annum.

Note: Group Term life insurance is cheaper than the regular term life insurance

Hisana: do you know why your agent does want to talk about the term insurance? because he/she will loose a lot of commission if you'll buy term rather than whole life or VUL.

[tidus1203]

maybe you have enough ASSETS to provide for your family in case something happens, however for an average family it is a must if they are still building there ASSETS. once your asset column is increasing the need for life insurance also decreases unless you'll use your life insurance for ESTATE purposes.

Well as far as I am concerned getting a life insurance is not a way you grow your assets effectively given its crappy returns. (sa inflation pa lang tostado ka na) These insurance companies always tempt you with the "WHAT IF" scenarios. Fact of the matter is the chances are so slim that you will die (that is if you're not sick and are not in a dangerous job and even if you're sick or in a dangerous job your premiums will be higher the insurance company is just too smart for you and has cover all their bases) and the insurance company just like a casino almost always win.

[yajluman]

what type of insurance would you recommend? whats a good insurance company? they say its wiser to invest ur money in insurance than savings due to inflation...

Paying a monthly/yearly premium for life insurance is only protection for your loved ones (widowed wife, orphaned pre-college kids, poor survivors: siblings/parents, (abandoned mistresses/lovers :rotflmao: ) et al) just in case you pass away prematurely. It is most definitely not an investment!

How can you possibly enjoy your investment ROI (Return On Investment) if you are disabled or dead? :mecry: When I'm dead, I wouldn't care about inflation, taxes or anything else! :D

Think of insurance as in paying annual premium on your car, house or business. Do you intend to crash your SUV against another SUV to collect money? Do you wish to have your house burnt to ashes to make more money? Do you wish to have a shunami flood/destroy your business/store to have a Return On Investment? Do you wish your loved ones plot or pray that you will die soon? :bop: Or worse, will your "loved ones" have a motive to murder you, kapag minsan napagalitan or nakaaway mo sila? :grrr:

No, of course not! But if any of those castrophic examples happen, then your hard-earned money will be recovered 50-99%, if you're lucky i.e., you didn't get crippled, burnt or nearly drowned in the process!

Buy term insurance, yes or a disability insurance but not whole life because the return on investment is not as as good as real investments read: the other insightful posters (such as tidus1203, foolcha, et al) have commented.

If you want to invest in Life Insurance Companies, by all means do it! For example, INVEST in companies like Prudential, AIG, Aetna, AXA, Sunlife or Manulife, etc. These blue chip companies would give out quarterly dividends and also will most probably grow in value at least 5-10% per year. Spending those dividends or cashing out those appreciated stocks later will financed the Venetian cruise vacation, purchase of a second home condo in Acapulco or gimik in Paris/Makati when you retire.

[yajluman]

i heard term insurance is just a waste of money. is it true?

False! Whole life insurance and/or putting your money under the mattress are/is probably under the same wasteful category, IMHO! :D

Of course, if you unwisely put the money you saved in buying term insurance (rather than whole life insurance) into "investing" lotto tickets, then you're talking bigtime MEGA WASTE!:bop:

[foolcha]

I totally agree with yajluman :)

[kenzo2317]

i'm investing in sun life's variable unit life insurance product. and I think it's the best insurance product i've seen. it's a hybrid of a life insurance and a mutual fund and it gives you the power to decide where to put your money in (equity fund, balanced fund, bond fund, dollar bond fund). plus your fund value is withdrawable anytime! my fund value increased 11% over 6 months, something that I can only dream of in a bank account!

plus since this is an insurance product, it's tax-free!!!

think about it :)

[nutrilicious]

Paying a monthly/yearly premium for life insurance is only protection for your loved ones (widowed wife, orphaned pre-college kids, poor survivors: siblings/parents, (abandoned mistresses/lovers :rotflmao: ) et al) just in case you pass away prematurely. It is most definitely not an investment!

How can you possibly enjoy your investment ROI (Return On Investment) if you are disabled or dead? :mecry: When I'm dead, I wouldn't care about inflation, taxes or anything else! :D

Think of insurance as in paying annual premium on your car, house or business. Do you intend to crash your SUV against another SUV to collect money? Do you wish to have your house burnt to ashes to make more money? Do you wish to have a shunami flood/destroy your business/store to have a Return On Investment? Do you wish your loved ones plot or pray that you will die soon? :bop: Or worse, will your "loved ones" have a motive to murder you, kapag minsan napagalitan or nakaaway mo sila? :grrr:

No, of course not! But if any of those castrophic examples happen, then your hard-earned money will be recovered 50-99%, if you're lucky i.e., you didn't get crippled, burnt or nearly drowned in the process!

Buy term insurance, yes or a disability insurance but not whole life because the return on investment is not as as good as real investments read: the other insightful posters (such as tidus1203, foolcha, et al) have commented.

If you want to invest in Life Insurance Companies, by all means do it! For example, INVEST in companies like Prudential, AIG, Aetna, AXA, Sunlife or Manulife, etc. These blue chip companies would give out quarterly dividends and also will most probably grow in value at least 5-10% per year. Spending those dividends or cashing out those appreciated stocks later will financed the Venetian cruise vacation, purchase of a second home condo in Acapulco or gimik in Paris/Makati when you retire.



when i said invesment i wasnt thinking of LIFE INSURANCE or CAR INSURANCE. what i meant was... pension plans/retirement funds which actually earn dividends. which can make your money grow bigger compared to interest rates in regular savings bank.

[jay372011]

Sa Sunlife parang merong insurance/retirement na paying 15k for ten years and you can get some money after the 10th year or magiging double ang pera after 20 years. So yung pera ko na 150k magiging 300k in 20 years. Not bad. You dont need to die naman to enjoy your moneywith the insurance now- ikaw mismo ang magharvest ng pinaghirapan mo and at the back of your mind pag may nangyari, protektado ka. You can enjoy it towards your retirement. Makakautang ka pa dito.

Question lang po what is the 2 year contestability period? How does it works.

Another FYI may Money Back program ang Insular . Pay for 10 years wait for another 10 years and after the 20th year yung pera mo magiging more than double or 255%. Example your paying 10k a year - in ten years that is 100k - wait for another 10 years. After the total 20 years magiging 250k ang pera mo. Not bad really if you ask me.

[thundercats]

^ yup ako rin kumuha ng Insular Money back . i can say it's a good investment na rin kse after 20 years i can get back my money plus interest , and pag nahospitalized (syempre depende kung ano sickness nakastate dun sa plan) , i can get money habang nakaconfine...

[jay372011]

Thundercats merong bang contestability yung kinuha mo - pano if magkasakit ang tao agad agad ng wala pang 2 years.

Iba na kasi ang mga plans ngayon insurance with retirement benefits or insurance with mutual funds ang daming pagpipilian talaga.

[la_flash]

I have Sunlife plan10. I can get a good lump sum when I retire many years from now.

I also heard about this 2years contestability period. I think I need to review the paraphernalia/documents that sunlife have given me.

Do you think it's a good investment?

[jay372011]

Of course it's not good :grrr: Its very very good*okay*
Its better than investing in a bank. Insured ka na may retirement ka pa. Kumita pa ang pera mo kahit paano. You dont have to die just to enjoy it. Aside from that you can loan from your Cash Value, di mo na kailangan i surrender ang policy mo.

[foolcha]

Filipinos still don't know how we are being rob by insurance companies... who offer us whole life/endownment/others.. there is only one best insurance which is the term insurance aka pure insurance...

We Filipinos still don't know what insurance is for... it is not for retirement... it is for protection only...

Why would you borrow againts your cash value?... that is your OWN money why do you need to pay for interest for your own money?

If you want to understand investments/insurance/others you can pm i can help you...

[jay372011]

Foolcha do you know Suze Orman of Oprah and her own show at CNBC - i watch her everyday and SHE TOTALLY AGREES WITH YOU 100%. Ako i totally agree with her except on this term insurance WHICH SHE REALLY REALLY HATES. Duon lang kami hindi magkasundo ni Suze Orman.

Ako kasi im single and dont intend to marry and basically if something happens to me wala naman akong benificiary kundi parents ko lang. I am a firm believer of putting your money in good investments and I think this is it for me , well better than savings or better time deposit. Duon ko lang kasi siya i compare. Magkano lang ba sa banks or sa stocks or sa bonds?

Duon sa Sunlife ko I am paying 15k per year for ten years and after another ten years of waiting doble ang pera ko. This is just one of my investments. Pano kung first year pa lang may nangyari na, at least meron ang beneficiary ko na 300k kagad at pag accident 600k yon.

To be honest ayoko ng insurance per se because parang kailangan MAG GOODBYE muna ako sa mundo. Protected nga sila pero ako naman di ko na pakikinabangan ang pera na pinaghirapan ko. For me yung kinuha kong plans is INVESTMENT first siya and as PROTECTION secondary lang.

At present may nag offer sa akin ng 15k paying 10 years and another 10 years waiting for A TERM OF 20 YEARS. After that ibabalik sayo ang lahat ng ibinayad mo na may konting interest. 2 million insurance yon. Wala lang it does not attract me at all, sabi nga ng sis ko mukhang di daw bagay sa profile ko ang ini offer ng Aunt namin. Siguro nga if breadwinner ka at ikaw lang ang inaasahan TERM ang mas bagay.

My Dad, Sis, Aunt, another Sis, Male Cuzin are all with the insurance business and more or less na explain na nila sa akin ang pasikot sikot. You tell me bakit kaya ganito ang mindset ko. Im open for your insights, we will all learn from your comments.

[foolcha]

jay372011

Yes I have watch her in one of her TV show.

There are only 2 things that could happen in our lives... it's either we die too soon... or live too long... in order to address the problem... we much have insurance and investments... If your investments is already sufficient you basically don't need insurance... but if you're still young and don't have any investments yet you need enough insurance so that you could provide everything you wanted them to have in case you die...

Summary:
Insurance is for protection (in case you die too soon) while Investments is for retirement (in case you live too long)

In your case since you said that you don't have anyone except for your parents then you basically don't need so much insurance... maybe just enough for them to pay for hospital bills, funerals and others... but what you must have is investments (bonds/stocks/mutual funds/uitf/real estate)...

[jay372011]

Yes foolcha I do have some properties and I believe in savings kaya lang napaka imposible naman sa banks - sobrang mababa. Siguro familiar ka din with the mutual funds na may kasamang insurance, i also have that. What happens is sa first few years napupunta sa insurance premiums ang pera and then the succeding (gosh pano ba i spell yon - sensha na kung wrong spelling) amounts will go to the mutual funds handled by Sunlife. Yon bale naglalaro na ako sa mutual funds and insured pa ako. In the event that the PSE crashes I still have my insurance na protected ako na hindi bumagsak ang value ng pera ko. That is the worst case scenario but the fund managers naman dont put all eggs in one basket.

Duon naman sa getting a loan from your premiums i think is great. Pag mejo tagilid ang cash flow mo minsan naiisip ko i surrender na diba pero at least you can loan kahit may interest pa sa pera ko ok na lang din. Paano kung nag surrender ka ng policy mo saka ka pa NAG GOOD BYE - kawawa naman ang mga naiwan diba.

Ewan ko lang ha i think you can get the best of both worlds with the combo mutual funds/insurance or retirement fund/ insurance. Because on day one na nagbayad ka ng premium mo - secured ka na kagad may inaasahan ka pang maayos na interest in 15 to 20years.

Thanks for the advice.

[foolcha]

jay372011

VUL follows the same principle we teach... "Buy term and invest the difference" however some insurance companies charge you with lots of fees which can actually be avioded or lessen in some way.

For example for a 22 y/o wanted to have a life insurance coverage worth 1Million he only needs to pay 8,000+ per annum while for a whole life thats 2X-3x the amount in order to have that same coverage.

Do you know that a savings of half (8,000) invested at 12% per annum is approximately 2M in 30 years... that's what you can get if you do the BUY TERM and INVEST the difference.

In insurance particularly with whole life there is only 2 scenario you can get the FACE AMOUNT it's either you die when the contract is still enforce or you get to the age the policy says usually 65 y/o.

But if you only BUY TERM at 8,000+ increasing per annum then invest the other 8,000 at 12% per annum you could get at least 2M in 30 years. thats a win-win for you. if you die your family gets the 1M but if you live long you get the 2M.

Summary: In our example 22 y/o buying Term and investing the difference

1. He does not need to get to age 65 in order to get the FACE AMOUNT of the insurance.
2. He gets 2M by age 52 (13 years earlier)
3. In case he dies his family gets 1M / in case he lives too long he gets the 2M+


Ask this question to yourself... When you buy insurance/investments is it for your interest or your agents interest?

If you want to fully understand investments/insurance you can pm me i can teach you how... :)

[jay372011]

Got it Foolcha! Thanks!

[etxetera]

Interesting discussion I'm learning a lot :)

[foolcha]

jay372011

VUL follows the same principle we teach... "Buy term and invest the difference" however some insurance companies charge you with lots of fees which can actually be avioded or lessen in some way.

For example for a 22 y/o wanted to have a life insurance coverage worth 1Million he only needs to pay 8,000+ per annum while for a whole life thats 2X-3x the amount in order to have that same coverage.

Do you know that a savings of half (8,000) invested at 12% per annum is approximately 2M in 30 years... that's what you can get if you do the BUY TERM and INVEST the difference.

In insurance particularly with whole life there is only 2 scenario you can get the FACE AMOUNT it's either you die when the contract is still enforce or you get to the age the policy says usually 65 y/o.

But if you only BUY TERM at 8,000+ increasing per annum then invest the other 8,000 at 12% per annum you could get at least 2M in 30 years. thats a win-win for you. if you die your family gets the 1M but if you live long you get the 2M.

Summary: In our example 22 y/o buying Term and investing the difference

1. He does not need to get to age 65 in order to get the FACE AMOUNT of the insurance.
2. He gets 2M by age 52 (13 years earlier)
3. In case he dies his family gets 1M / in case he lives too long he gets the 2M+


Ask this question to yourself... When you buy insurance/investments is it for your interest or your agents interest?

If you want to fully understand investments/insurance you can pm me i can teach you how... :)

For our free personal finance seminar please visit my post at http://www.pinoyexchange.com/forums/showthread.php?t=326409

[metropolitan]

I'm shopping around for term life insurance convertible to permanent/whole life policy for niece and her partner. Which reputable insurance companies sell those. how much is the price range for premiums for a 25 year old?

Personally, I don't want a VUL for me because if I want to invest, I want my money readily available for me not to my heirs only after I die.

[mystify]

jay372011
Summary: In our example 22 y/o buying Term and investing the difference

1. He does not need to get to age 65 in order to get the FACE AMOUNT of the insurance.
2. He gets 2M by age 52 (13 years earlier)
3. In case he dies his family gets 1M / in case he lives too long he gets the 2M+



Hello there foolcha. I've been reading about insurance kse I'm preparing to purchase one. Meron akong di maintindihan sa term insurance, hope you can shed light.

Let's say I purchased term insurance to last until I'm 65 years old.

Pero di naman ako namatay before 65. Let's say buhay pa ako at 66 and the term of my insurance policy has ended, would I then get a lump sum from the provider?

If I die at 67 years old, will my beneficiaries receive anything?

Tnx.

[foolcha]

@ metropolitan

There is a term insurance offered by COCOLIFE 20-Year Renewable Convertible Term.

Age 25y/o
Coverage: 1,000,000.00

Premiums: 7,020.00
ADB: 1,390.00
WPD: 352.00
Total Premium: 8,762.00

Note: Term Insurance premium increases every year / Sample is annual basis Exclusively Distributed by IMG in partnership with COCOLIFE

@ mystify

The Answer to your question is you will not get anything if your insurance is a "term insurance". The only way for you to get the face amount is to die.

The reason i'm suggesting term insurance is because it is the cheapest insurance and I'm an advocate of buying "TERM INSURANCE and INVEST THE DIFFERENCE".


Maybe your asking WHY? it is because if you do what i suggest you buy term insurance and invest the difference I can guarantee you, you dont have to die or reach the age of 65 y/o just to get the FACE AMOUNT of your insurance.

IF you DIE you get the FACE AMOUNT, if you live you get more than the FACE AMOUNT at least 10 YEARS EARLIER. (If you do the concept of buy term and invest the difference)

Note: Insurance agent will not tell you this because they will lose lots of commission.

[mystify]

it's now clear. thanks foolcha. :)

[Timmy_77]

whats the best pension plan for a 35 year old?

[tyanak_soo]

Why? Because you're more useful to others dead than alive. :rotflmao:

[mxherr5]

Hi I got Sunlife's VUL and i'm really satisfied with it.
My agent showed me the table of insurance charges
for each year/non smoker and the total charges at the age 65 is around 220,000 assuming the table of insurance charges doesn't change(the premium and periodic won't change as stipulated on the contract) So i was 21 when i got that and it comes to around 5000/year for a 1 million protection plus your fund value. The best para sa akin yung sa akin. The next that comes close is prulife. i'm only talking about VULs ah.. hnd ko alam yung mga ibang products.
Also sun has great services, you can check your account thru phone and online..

Yun *** po =)

[blu3tooth]

Guys,

ive been offered a new insurace. with investment na and the works like unlimited dental services, checkups etc. what do you think of this? worth it ba?

http://www.gdprimemarketing.com/products.htm

[freakster2k1]

multiplier effect. :P

[Giv&Tak]

any bad experience w/ FLT Prime Insurance? I will tell mine if I still dont get my Official Receipt by next week. Thanks for any sharings.
God Bless!

[cherry_lou]

http://www.pinoyexchange.com/forums/images/smilies/grrr.gif

well I know someone from Philamlife and she's not just an ordinary agent. She's a financial advisor. Very professsional sya rin ang agent ng parents ko well 20 years or more na sya agent cause my father have rciv d Return of premiums nya afterfor 20 yrs and still insured. She's really good talaga. lahat ng executive sa company nmin sya rin ang agent cause she's really trustworthy. Not just product selling or pushing she'll explain why you need it tlaga. You may want to contact her - Lourdes Bernardo Cel. 09178251739 Off: 4236036. or go to her nalang 2nd Flr. Philamlife Bldg. Araneta Center Cubao Q.C.

[p!nk]

Has anybody here been offered the new PHILAM VIRTUE plan?

[DongViktor]

Has anybody here been offered the new PHILAM VIRTUE plan?

did somebody offered it to you?

[p!nk]

^yep. actually, i just got one. try ko lang muna. kasi as of now wala akong insurance for myself. and i kinda like the idea of savings + insurance. marami palang inooffer ang philam ngayon. masyado kasing busy di ako nakaattend sa mga seminars nila.

[cleverboy]

this thread is brilliant, lots of smart people, ive learned a lot, you guys are awesome.

im a 25 year old registered nurse, on a holiday lang ako here sa pinas, ill be meeting up with a Philam/AIG agent on monday to talk about insurance. id like avail of a policy that comes with medical coverage, that is for me and my parents/sister, single pa kasi ako. at the moment ako ang breadwinner, may ganun bang bundle sa philam? life plus medical

[liwakri]

Sa umpisa tingin mo sa insurance, gastos, expense. Pero isipin mo pag nangyari *** mga unexpected events like nadedo ka or nabangga *** sasakyan mo ubos *** ipon mo. That is kung may naipon ka, pano kung wala pa. One point din sa insurance, dapat lam mo *** options mo, ano ba *** mga features na meron sa market. Like for example car insurance, pde nyo icheck *** site na http://carinsuranceforyoungdrivers.blogspot.com/ for some useful info. At least may idea ka kung ano *** mga dapat na meron ka sa insurance mo.

[metropolitan]

I heard this from an estate planning expert on ABS-CBN News Channel's ShopTalk, the insurance benefit daw of the insured person will be taxed unless the beneficiaries are named as irrevocable prior to the death of the insured.

[killer16]

you got to invest in the unknown. But the best insurance you will get is by knowing all kinds of insurance and how they work to get the best for your money.

[siberia]

If you have the money now, and you are wise enough to understand the need to protect yourself and your family against financial wreck in the unknown future, getting an insurance is the way to go.

[gentle_touchee]

is getting a life insurance+investment on sunlife's mutual fund (or any other mutual fund) a good deal still given the global financial meltdown?

[metropolitan]

is getting a life insurance+investment on sunlife's mutual fund (or any other mutual fund) a good deal still given the global financial meltdown?

if you need your money ready and accessible anytime and you are risk averse, stick with a bank savings account.

[gentle_touchee]

if you need your money ready and accessible anytime and you are risk averse, stick with a bank savings account.

hi, thanks. ok na rin siguro kung 10k per year and only for 10 years. can someone from Sunlife pm me about the details of this insurance plan?

[metropolitan]

I have seen many videos and articles/books written by American personal financial experts like Suze Orman and Dave Ramsey who discourage people in taking whole life and variable life policies. According to them, the only insurance you and I should be getting are term life insurance policies for up to 20 years.

Suze Orman said, "life insurance wasn't meant to be permanent; it's there to protect your family before you've had a chance to accumulate enough funds (through investments and savings) to do so (http://www.oprah.com/article/omagazine/omag_200308_suze/1)." Dave Ramsay said the returns on "cash value" policies are "horrible (http://www.daveramsey.com/the_truth_about/life_insurance_3481.html.cfm)" and that one can make better returns on other investments.

They also say that whole life and variable life policies are very expensive and most of the premiums are "really" used to pay for the commission of the insurance agent that sold the policy.

Their suggestion to people is to save and invest in investments such as stocks and mutual funds whose returns in 10 to 20 years shall exceed savings accounts and insurance cash values.

[alvintabz]

I have seen many videos and articles/books written by American personal financial experts like Suze Orman and Dave Ramsey who discourage people in taking whole life and variable life policies. According to them, the only insurance you and I should be getting are term life insurance policies for up to 20 years.


Up to a certain age, term insurance is indeed the smarter option. Term insurance is ideal for the young ones with little money to buy insurance. However, it should be noted that term premiums increase as you grow older. At kung matatagalan bago ka kukunin ni Lord, you could end up paying a lot more.

My advise is to get a whole life plan that you can afford. It doesn't have to be the coverage that the agent tells you. (Agents would naturally encourage you to get a more expensive plan because of the commission). Typical life insurance coverage is 6 to 10 times your annual income. Kung di kaya sa budget, gawing 3-5 times annual income na lang. Mas maganda na yung may maliit kaysa wala.


ALVIN T. TABANAG, RFP
Money Management Coach & Author
http://www.pinoysmartsavers.com/kmpthumb.gif (http://www.pinoysmartsavers.com/kayamopinoy.html)

[nuss]

metropolitan, I guess it depends on which variable life program you apply for. So far, karamihan kasi ng variable life plans na meron sa market ngayon mahal talaga at ang daming front charges.

But there are some VL products that are really good.

[happymario]

i will not get married and have no plan or getting married in the future.. gusto ko sana mag invest sa isang pension plan that will help me when i retire is this a good move.. parang tama yung point ng isa sa forum yung basic unsurance para lang sa family mo.. pana naman kung gusto mong ikaw ang makinabang sa money mo.. help please and advise i am 38 years old and will get pension/insurance by 2009. thanks po

[metropolitan]

i will not get married and have no plan or getting married in the future.. gusto ko sana mag invest sa isang pension plan that will help me when i retire is this a good move.. parang tama yung point ng isa sa forum yung basic unsurance para lang sa family mo.. pana naman kung gusto mong ikaw ang makinabang sa money mo.. help please and advise i am 38 years old and will get pension/insurance by 2009. thanks po

masyadong mababa ang returns ng mga pension plans.

try to familiarize yourself with mutual funds or unit investment trust funds instead.

[nuss]

^^Variable life covers you pretty much all the way. I suggest you also look into it.

[tops5450]

Check this out. Consider a thousand times before getting an insurance. hope helps.

Pre-need firms seek reprieve from SEC
By JAMES A. LOYOLA

Members of the Philippine pre-need industry has sought the assistance of the Securities and Exchange Commission (SEC) to help them deal with the effects of the ongoing global financial crisis which has reduced the value of their trust funds.

In a letter to SEC chairperson Fe Barin, the Philippine Federation of Pre-need Plan Companies said that, in the last few months, "the trust funds of our plans registered huge ‘unrealized’ erosions in value because of the mark-to-market accounting standards."

In response, SEC director Jose Aquino said the SEC "commiserates" with the industry and asked for a proposal on how to resolve these issues, assuring that the SEC will assist in evaluating these options.

"The root cause of the problem of the Pre-need industry stems from plans that were approved and underwritten in the past based on assumptions which, while prudent at that time, have not been sustained by subsequent events beyond our control," explained the Federation.

It said their growing obligations on plans sold in the past had assumed interest yields of up to 16 percent a year. The Federation noted that large volumes of plans were underwritten under these past assumptions which are no longer viable.

According to the group, the shrinking value of pre-need trust funds "has driven home the realization and acceptance that unless and until the onerous required yields on our old business are resolved and properly addressed, there can be no certain future for our industry."

The Federation noted that while new plans sold in the past seven years have been redesigned and are profitable and more flexible, pre-need firms continue to suffer heavy losses from the old plans.

It noted that the simple solution of putting up huge capital and injecting new funds into the trust fund is no longer doable since the erosion and resulting variances in trust funds run in the billions.

The Federation warned that it will be the death of the industry if they are forced to inject additional capital or to stop selling new plans since they cannot continue to serve existing plans this way.

(http://www.mb.com.ph/BSNS20090114145579.html)

[nuss]

^I'll still get insurance but from providers with good track records. If they ever default on the maturity, they are required to by IC to add 8% to the contract price for every year they won't be able to liquidate the money to you.

[chardpal]

Hi guys!

If you want to know more about insurances, just PM me. Know the concepts about what is an insurance. What are the different kinds of payment terms. How would you know if you need one? Which insurance company is the best?

Just PM me and I can help you with some details. *okay*

[r_yssa]

hi guys, i do financial security planning with Manulife.

If you may want to be educate your self regarding Life insurance, Pre-neeed and Variable life investment you can PM me or email for appointment at r_yssa@yahoo.com.

It is very important to understand the products before buying especially in the insurance industry. company stability is very cruicial. There are several considerations that should be taken into before deciding to purchase one.

[phonefanatic]

I did a study between investing in a life insurance and investing in a mutual fund.

It suffices to conclude that Life Insurance is only for those who have dependents and can only be fruitful if you died.

Life Insurance vs. Mutual Funds (http://www.millionaireacts.com/199/life-insurance-vs-mutual-fund-as-investment.html)

[fernando_hierro]

get insurance because you could die anytime
its a gift to your loved ones who who will be left behind

now, if you are super rich
then get insurance because you can afford to pay a big premiums
get the right amount of insurance to cover the estate taxes that your family will have to pay aftr your death
remember, orderly transfer of heritance can only be done when correct estate taxes are paid

[contactchecker]

most senior citizens receive 10k to 13k from the sss per month. just something to think about :)

[Ischaramoochie]

I did a study between investing in a life insurance and investing in a mutual fund.

It suffices to conclude that Life Insurance is only for those who have dependents and can only be fruitful if you died.

Life Insurance vs. Mutual Funds (http://www.millionaireacts.com/199/life-insurance-vs-mutual-fund-as-investment.html)

just to clarify though, the above conclusion applies mostly to traditional life insurance policies. a variable life insurance policy is almost identical to a mutual fund except that in the former, you are obliged to sell a number of units from time to time to secure a guaranteed insurance benefit. you are also allowed to withdraw anytime, and depending on the performance of the underlying investment, you may be able to to get more than what you originally invested without really having to die. this may be useful for those who want to save up for retirement but are also considering the fact that their health may deteriorate over time, and that they still have to provide for their dependents. also, the interest earnings are free from income tax, and proceeds from variable life insurance are not subject to garnishment. upon retirement, the policyowners may opt to surrender their policies and use the fund value to purchase an annuity which would provide a steady retirement income. at least this way, they are sure that they would be able to get sufficient funds for any eventuality before retirement.

[business_guy]

Kumuha na lang kayo ng life insurance sa BPI (Especially for those who are new in availing insurance). They have this product called Get Started - This product is a savings account and comes with a life insurance up to PHP2,000,000.00 - depending to average daily balance and multiply it by 5 to a maximum of PHP2,000,000.00. No check-ups required. No premiums to be paid. All you need to do is to maintain your savings account balance. As long as you are not yet 70 years old, you can avail this product. Eligible age for this product is from 15 years old up to 70 years old....

BPI (Maintaining balance for Get Started - Savings Account with Life Insurance):
1. ATM Account: PHP 25,000.00
2. Passbook Account: PHP 75,000.00

BPI Family Savings Bank (Maintaining balance for Get Started - Savings Account with Life Insurance):
1. ATM Account: PHP 10,000.00
2. Passbook Account: PHP 50,000.00

FYI....

[Ischaramoochie]

^ but for those already with BPI accounts, isn't that almost identical to the direct save up account?

as an alternative to that, people might also be interested in availing of yearly renewable term insurance. it's really very affordable, and you can stop paying for it anytime you want.

[fernando_hierro]

hoy business_guy

that get started of yours has an insurance rider only, not a real personal insurance
pag sinara mo na account mo o bumaba na balance mo, wala ng saysay yang insurance mo
at pag inasa mo dyan ang insurance requirements
yari ka pag tumanda ka na, kung kailan kailangan mo ng insurance

best pa rin to buy your own insurance, pay for it, lifetime yun...

[business_guy]

^ but for those already with BPI accounts, isn't that almost identical to the direct save up account?

as an alternative to that, people might also be interested in availing of yearly renewable term insurance. it's really very affordable, and you can stop paying for it anytime you want.

But not all BPI account holders know how to deal with direct save up account. This may be easy for those who has an access to their alternative channels, but for those who are still confused and afraid to try to do banking other than the traditional process, this Get Started is very ideal to them....

[business_guy]

hoy business_guy

that get started of yours has an insurance rider only, not a real personal insurance
pag sinara mo na account mo o bumaba na balance mo, wala ng saysay yang insurance mo
at pag inasa mo dyan ang insurance requirements
yari ka pag tumanda ka na, kung kailan kailangan mo ng insurance

best pa rin to buy your own insurance, pay for it, lifetime yun...

Excuse me, haven't I mentioned about the average daily balance on my posting above? Wala kasi niyan sa BDO kaya sobrang defensive ka about this product. Even this is just an insurance rider, totoong insurance naman ito and no financial institutions are offering this kind of savings account product. BPI lang meron niyan. Meron naman din akong BDO account and malaki-laki din ang placement ko doon and most of it are currently placed at BDO Peso Money Market Fund and BDO Peso Bond Fund. I Just had my platinum credit card from them (last February) - BDO loves me and I love them too :). By the way, no one is calling me 'hoy', ikaw lang. 'Hoy' ka din :bop:....

[marimorimo]

I agree with the BPI Direct Save-up + Insurance. I don't really see anything that's bad about it, except kailangan mong mamatay/maputulan ng parte ng katawan para mapakinabangan :lol: pero diba pag kumuha ka ng Life Insurance hindi naman talaga para sa iyo yon, kundi para sa mga iiwanan mo? At san ka pa makakakita ng insurance where you can withdraw your premiums anytime. Actually, wala siyang premium! Ang pinagbabasehan sa payout the average balance for the last 3 months. Catch is, covered ka lang up to 60 years old, but I'm still 23 and hopefully by the time I'm 60 I've accumulated enough assets to provide for my family when I am gone without having to rely on insurance. Balak ko magdeposit up to Php 400,000 dun sa BPI Direct Save-up ko para mapakinabangan yung maximum (x5 = 2,000,000 payout). Anyway I can withdraw it anytime tapos ibalik ko na lang ulit pag nakaluwag na ;)

[Ischaramoochie]

^ actually, the premiums will come from the interest earnings of the bank based on your average balance. even if the account gives you 1% p.a., you lose more because you experience capital erosion due to inflation, and it's always possible to get term insurance by yourself. if you're concerned about needing insurance even after age 60, i suggest you get a varable life insurance policy, or permanent whole life insurance plan so not only are you covered until age 100, you'd have a savings component that doubles up as an emergency fund anytime you need the cash.

that being said, the BPI Direct Save-Up is sxcellent but only for those who are still beginning to get a habit of savings, and want the extra insurance protection, but not really for those who would want more out of their money.

[marimorimo]

^My concern about term insurance is if they are always renewable every year? What if you suddenly developed an illness and the insurance company refuses to renew your term insurance? Then you have no insurance whatsoever, right? And don't the premium payments increase every year/every time you renew it?

[nuss]

^Nasa variable life na nga ang usapan, why still ask about term insurance? :D

[fernando_hierro]

hoy business_guy

kaya rider yng bpi insurance mo, pag 60 ka na, wala na yan
kahit milyon milyon ang balanse mo

bumili ka ng whole life
para kahit tanda ka na may insurance ka pa

pag dyan mo inasa yan at nawala yan pag 60 mo
sino ang mag insure sa yo after that

bulok yan

[freedomfighter8]

In the long run a permanent whole life insurance or a VUL will do more wonder than a plain term insurance only. Term insurance is good only for short term insurance protection needs such as when you are jsut starting-up or don't have yet the funds to buy you a permanent plan.

The reason is obvious as pointed out by fernando and other posters here, term insurance do expires when you reached the maximum age for its coverage - usually at age 65 to most insurance companies. And mind you, at that age onwards, life insurance coverage is vital for a sound financial health just in case the inevitable happens. Even if you no longer have dependents by that time and have already sufficient wealth to tide you over, still, it is more practical to have your life insurance coverage fund 100% your assessed Estate Tax liabilities so as to assure an orderly transfer of your wealth or Estate to your heirs.

If you will finally get a whole life policy only by that time when you are already old and term insurance is no longer viable, then you might be in for a lot more hassles in terms of higher cost of premiums and the possibility of not being insurable because by that time... heck! you might be afflicted with illnessess associated with old age!

So my advise, if you can afford to get either a permanent whole life insurance or a VUL as early as now - do so.

However, if you can not yet afford to get a permanent one because of your present circumstances, then get term insurance in the meantime, but make sure it has guaranteed convertibility and renewability features just for good measure. A Renewable and Convertible Term (RCT) allows you to covert your term insurance into a permanent plan without evidence of insurability when the time comes that you are ready to purchase a permanent solution plan for your insurance needs - even if you happen to be no longer insurable by that time.

Pwede rin naman combination muna by combining a permanent insurace with a renewable and convertible term insurance to maximize your protection. Then just slowly upgrade by converting your term insurance into permanent insurance along the years. In fact, you can do that under one policy only with term RCT being an insurance rider only.

Also do not forget your need for long-term health care in the event of diagnosis of a critical illness. We may be able to cope with ordinary illnessess but being struck with diagnosis of a critical illness such as cancer, heart attack, or stroke is a financially devastating interuption to our financial planning.

Make sure that your personal Insurance advisor or Financial advisor have all these things covered.

Just my views.

Regards,



Tony Cura
Sun Life Financial Advisor
thonycoors7@yahoo.com
0917-5803858

[tops5450]

Just a thought....

I am your life insurance policy.
You and I have similar purposes in this world.
It is job to provide food,clothing,shelter,schooling,medicine and other things for your loved ones.
you do this while I lie in your safe deposit box.
i have faith and trust in you.
Out of your earnings will come my upkeep.
At times, I may appear insignificant to you
but someday (and who knows when) you and I will change places.
When you are laid to rest,
I will come alive and do your job
I may provide food, clothing,shelter,schooling,medicine,and other things your family will continue to need-
just as you are doing now.
When your works and labor are done, mine will begin.
Through me, your hands canl carry on.
Whenever you feel the price you're paying is burdensome,
remember that I can do more for your family than you will ever do to me.
If you do your part, I will do mine.

Sincerely yours,
your life insurance policy

[Ischaramoochie]

^ compliance issue!