Are you properly insured?


A lot of us are making fun about getting Life Insurance. We think that we need life insurance only when we are going to die and we think that it is an expense. Ironically, we need life insurance when we are young and healthy because we don’t know when we are going to die and if you get life insurance when you are old and sick most likely you will not be approved.

Having a life insurance is not enough but you have to know if you are properly insured. It should be part of your financial portfolio. How would you know if you are properly insured?

In my client’s case,she has extended family. She supports her Mother, Sister and a Special Brother as his father passed way already. Every month, she spends on the average of Ph10,000 for all the expenses for them. Now, she spends Ph120,000 per year. Now, how would you know if how much  life insurance she should have if death comes?

Ideally, she should have at least 10 times of her annual expenses for her dependents. She should have at least Ph1,200,000 life insurance coverage so that if death comes her family will still get a budget of Ph10,000 per month for the next 10 years. This death benefit can be used so that her dependents can adjust for the next 10 years and will not be left in poverty.

My client is saving only Ph100 per day for her to be protected and at the same time her money is earning because after the charges of cost of insurance and admin charges it will be invested in pooled funds. She is setting aside Ph36,000 per year on a Variable Unit Linked.

With Ph100 per day savings can make her insured of Ph1,200,000 with her age of 28 until age 99. The good thing about Variable Unit Linked, it has investment component that can grow from 8%-10% per year on long term. She can have a premium holiday of 10 years only, meaning she can stop putting money in 10 years only.


While working hard for her family,she has peace of mind that if death comes she knows that her family will be financially stable for the next 10 years but because her insurance policy has investment in it, her family can receive more than Ph1,200,000 but if she will live long, she can  achieve her financial goals for her family.

Let’s say if she dies at age 40 her family will receive the guaranteed death benefit plus the fund value if it earns 10% per year. On the assumptions of earning 10% per year ,life insurance would be Ph1,200,000 plus Ph620,398.13 with a total of Ph1,820,398.13. But if she will live long until retirement at age 60, her money would have grown to Ph4,831,067.45 which she can use for her retirement and she is still insured with Ph1,200,000. This is what the Variable Unit Linked can do for the policy holder who just save Ph100 per day.

Now, you can now assess yourself if you are properly insured or not. You can check your expenses that you provide to your dependents and imagine if you died yesterday,do you think they would  be financially stable when you would be gone. Get life insurance not because you are going to die but get life insurance so that your family will not be hungry when you are gone.

I hope the you learn about insuring yourself properly. If you want to know more about insuring yourself and at the same time growing your money, you may reach me.

Thank you very much.

Archie M. Yuki
Financial Planner,Investment Consultant and Insurance Specialist
The Insular Life Assurance Ltd.,Co.
4th floor Karina Bldg., No. 33 Shaw Blvd. Pasig City
Tel No. 571-3274
Mobile Number. 0917-5769607, 0923-4941362
Email Address: archieyuki30@gmail.com

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