Lets talk about the importance of Life Insurance

[lorenzoleo]

Layo ra jud kaayo ang difference sa ROI kung ikaw mismo mu take charge sa investment side. Buy only Term Insurance then you take charge of the difference. T_T! Main purpose of Life Insurance is not for investment and savings, it is for INCOME REPLACEMENT or ESTATE PRESERVATION in case we die too soon, investment and savings must be directly invested into MF/stocks, you control your investment not the insurance company.

I always get updated myself with the Registered Financial Planners from the US. Term Insurance is the best for income replacement, investment must be stocks and MF/business, not the insurance company who will take charge of your investment. Because when the Insurance company will take chagre of your investment, I tell you your agent makes alot of money and diha mu kita ug dako ang Insurance Company but not really you will be most benefited, imagine Whole Life and Endowment, cost you more but your coverage is only small. It is Rip-Off. T_T!

If you read Financial/Money Books in different authors, they will always advice you to get TERM Insurance. T_T! Suze Orman, Dave Ramsey too, suggested to buy Term Insurance, because buying Whole Life and Endowment is completely Rip-Off. Arthur L. Williams too suggested to buy TERM Insurance and you know he is a Billionaire Insurance Executive.

[JamesCo]

It doesn't really matter much what the rank of the insurance provider is once certified sila sa Insurance Commission. And thats a fact. Kay maski mo quit pa ang insurance company naa juy mo take over sa policy holders nila to guarantee the contracts.

And they say nga guaranteed ang makuha at age 65. Comparing 1.3M(this is not from AXA but I'm assuming naa ra dinha nga figure ila pud ihatag) versus 14.4M(BTID) is such a easy decision.

And my BTID is invested in reliable companies which are Cocolife, FAMI, PAMI, PEMI and United Fund.

In Investment there is no guarantee in returns that is why it is call variable life. And in investment you don have to wait until age 65. And for Term insurance how old are you covered. What if you die at age 80 does term insurance cover up to age 80? Whole Life Insurance cover you up to age 100.

[JamesCo]

It doesn't really matter much what the rank of the insurance provider is once certified sila sa Insurance Commission. And thats a fact. Kay maski mo quit pa ang insurance company naa juy mo take over sa policy holders nila to guarantee the contracts.

And they say nga guaranteed ang makuha at age 65. Comparing 1.3M(this is not from AXA but I'm assuming naa ra dinha nga figure ila pud ihatag) versus 14.4M(BTID) is such a easy decision.

And my BTID is invested in reliable companies which are Cocolife, FAMI, PAMI, PEMI and United Fund.

Who said the it is guarantee that you will get an exact cash at age 65? Only in traditional Life insurance product has Guarantee Cash Values but the Dividends are not guarantee. All Investment Link Life insurance Product does not have a guarantee returns and so is investing directly to Stock Market.

Yes Investment Link Life insurance product yields lesser than directly investing to stock market. But directly investing in Stock Market gives you bigger risk, the fluctuation is much bigger. Investment Link Life Insurance Product Invest you money in top 10 blue chip companies of Philippine Stock Exchange so the fluctuation is lesser than directly investing in 1 company. The reason why AXA is the number on in Investment Link Life insurance is because it is trusted by many people sue to its performance in investing your money. In the global financial meltdown of 2008 and 2009. It only took AXA 5 months (Nov 2008-Apr 2009) to recover to its original price. Others company only recovered last Sept 2010.

[JamesCo]

Term Insurance:
Very Cheap intend to give people insurance coverage (Financial Protection) to people who can't afford
Whole Life or Participating Life Insurance.
You need to pay every year until your term insurance maximum renewable age usually (70).
There is no money with Term Insurance you get nothing if you don't die. There is no cash to loan or
withdraw when your still alive in Term Insurance.

Whole Life or Participating Life Insurance (Limited Pay or Investment Link Life Insurance)
Cost more than Term Insurance but you only pay in a limited number of years only (5, 10, 15, or 20 yrs)
Aside from paying your insurance cost a portion of your premium will be invested to enable you policy to
self-sustain.
You can have a policy load (Traditional Life) or Partial withdrawal in Investment of Variable Life or even
full withdrawal of your Money you need it.
You are covered up to age 100.
Traditional Life:
The company computes your returns so that they can give you guarantee cash values at anytime
of your policy effective years. it goes higher as your policy is enforce in a longer
period.
The Dividend (Not guarantee amount) is given to clients if the company performance is greater
than the actual expected.
You can Loan from your policy cash value.
Variable (Investment Link) Life insurance Product:
The Investment Performance is directly reflected to the client.
You can withdraw (not loan which means no interest charge) at anytime if your fund value is
high.
You and do top-ups at anytime just like a bank account, you can withdraw (if there is fund
value) or deposit anytime.
No dividend and Guarantee cash value. It is fund Value depending on the unit price.
Example
If you have 100,000 units and the current price is Php20/unit, your fund value is
Php2Milliion

[JamesCo]

Layo ra jud kaayo ang difference sa ROI kung ikaw mismo mu take charge sa investment side. Buy only Term Insurance then you take charge of the difference. T_T! Main purpose of Life Insurance is not for investment and savings, it is for INCOME REPLACEMENT or ESTATE PRESERVATION in case we die too soon, investment and savings must be directly invested into MF/stocks, you control your investment not the insurance company.

I always get updated myself with the Registered Financial Planners from the US. Term Insurance is the best for income replacement, investment must be stocks and MF/business, not the insurance company who will take charge of your investment. Because when the Insurance company will take chagre of your investment, I tell you your agent makes alot of money and diha mu kita ug dako ang Insurance Company but not really you will be most benefited, imagine Whole Life and Endowment, cost you more but your coverage is only small. It is Rip-Off. T_T!

If you read Financial/Money Books in different authors, they will always advice you to get TERM Insurance. T_T! Suze Orman, Dave Ramsey too, suggested to buy Term Insurance, because buying Whole Life and Endowment is completely Rip-Off. Arthur L. Williams too suggested to buy TERM Insurance and you know he is a Billionaire Insurance Executive.

How can a Whole Life be a Rip Off, imagine in Term Insurance you are paying every year until death. And if you die after the maximum renewable age of your term insurance you get nothing in return. it is only good if you die early or if you need financial protection while you still can't afford whole life. There is no money with loan or withdraw from term in-case you need money.

Usually whole life is limited pay, although its more expansive than Term insurance the huge portion of your premium is being invested to enable your cash value to self sustain your policy (you don't have to pay for life) Usually Limited pay is 5, 10, 15 and 20 yrs option.

There are also whole life product that is not limited pay. The policy will depend on your cash value (Traditional) or fund Value (Variable or Investment Link Product). If it can self-sustain or self-liquidate you can apply for a premium holiday (stop paying option).


in BTID (Buy Term and Invest the Difference)
it is 2 different product (Term Insurance and Investment). Term pay for life. You investment will not directly pay for your term.

Why not go to Investment Link Life Insurance it is 2 product in one (Life Insurance and Investment) and its life insurance will cover you up to age 100 not like term which is usually 60-75 yrs old. And with Investment link Life Ins. your just paying the insurance cost (cheaper than annual term). During Premium holiday (no longer paying) only the cost of insurance is charge to your fund value. You don't have to sell your investment to pay for your insurance its internal.

Term insurance is like buying Made in China Product because you can't afford the original (Whole Life)
Although Made in China Product is a lot cheaper, Original will last longer and give you your money's worth.

Imagine buying a cheap product and you have to keep on buying because it has shorter life span compare to the more quality one which will last for a life time.

[Metz]

In Investment there is no guarantee in returns that is why it is call variable life. And in investment you don have to wait until age 65. And for Term insurance how old are you covered. What if you die at age 80 does term insurance cover up to age 80? Whole Life Insurance cover you up to age 100.

The investment in BTID is not locked in. You can get it any time you want because its separate and invested in mutual funds. And some VULs(if not all) don't have cash value on the first 2 years. Sa BTID, unsa imo gi-invest sa mutual fund, patubuan na dayon.

Who needs to be covered up to 100? the only reason we need insurance is when we are still building wealth. Let's say my BTID will earn 10M by the time I'm 65, I no longer need to insure myself for 1M since guaranteed na naa nako mapasa sa ako family, or mag pa insure lang ko aron nindut ako lubong.

Term insurance is auto renewable or can be converted to whole life(if no choice). that's why 20 years jud ang recommended aron flat rate for a long period of time. I'm sure most of us can accumulate wealth within 40 years(2 term insurance). Why pay for until age 99, when we just need it in 40 years or even less. And it costs wayyyyy cheaper.

Who said the it is guarantee that you will get an exact cash at age 65? Only in traditional Life insurance product has Guarantee Cash Values but the Dividends are not guarantee. All Investment Link Life insurance Product does not have a guarantee returns and so is investing directly to Stock Market.

Yes Investment Link Life insurance product yields lesser than directly investing to stock market. But directly investing in Stock Market gives you bigger risk, the fluctuation is much bigger. Investment Link Life Insurance Product Invest you money in top 10 blue chip companies of Philippine Stock Exchange so the fluctuation is lesser than directly investing in 1 company. The reason why AXA is the number on in Investment Link Life insurance is because it is trusted by many people sue to its performance in investing your money. In the global financial meltdown of 2008 and 2009. It only took AXA 5 months (Nov 2008-Apr 2009) to recover to its original price. Others company only recovered last Sept 2010.

About the guarantee, I'm sure they we're able to say it to me kay dako kaayo ang ma keep nila at age of maturiy. It wasn't from AXA but I'm sure same ra ila system.

We recommend nga sa mutual funds ra mag invest, not in stocks. Kay mutual funds invest in blue chip stocks as well. But if you know how to play with stocks, go for stocks for a way better return.
And most, if not all mutual funds recovered easily after the market crash, not just AXA. Kay all of them are just riding the same boat.

Di lang nako ma point out unsay mutual fund partner sa AXA diri sa Pinas, but Sunlife, Philamlife and Cocolife have their own mutual fund companies.

[JamesCo]

I'm very sorry if I had hurt anyone. The reason I create or start this thread is I want people to realize the importance of having a life insurance product. And I don't want others to be a victim of Pre-need companies or Agents who just sale for their own personal profit. the above information was not purely from me I ask my agent about it also.

Everybody dies. Insurance has a lot of purpose.
1. Financial Protection
2. Illnesses Protection (Rider) help you pay medical expenses if your diagnose with Dreaded illnesses.
3. Accident Insurance. assist you financially if you lost portion of your body or your life in case of accident.
4. Help your love once pay your estate taxes.

Investment Link Life Insurance Product was not intended to make you rich, although I had earn a lot from it. Its main purpose if you give you a better Yield in your Investment. Safest Investment (Never had any Life Insurance had bankrupt for almost 200 years) not like bank their are a lot of bank closed and a lot of people lost their entire life savings on banks and Pre-Need Companies.

[JamesCo]

The investment in BTID is not locked in. You can get it any time you want because its separate and invested in mutual funds. And some VULs(if not all) don't have cash value on the first 2 years. Sa BTID, unsa imo gi-invest sa mutual fund, patubuan na dayon.

Who needs to be covered up to 100? the only reason we need insurance is when we are still building wealth. Let's say my BTID will earn 10M by the time I'm 65, I no longer need to insure myself for 1M since guaranteed na naa nako mapasa sa ako family, or mag pa insure lang ko aron nindut ako lubong.

Term insurance is auto renewable or can be converted to whole life(if no choice). that's why 20 years jud ang recommended aron flat rate for a long period of time. I'm sure most of us can accumulate wealth within 40 years(2 term insurance). Why pay for until age 99, when we just need it in 40 years or even less. And it costs wayyyyy cheaper.



About the guarantee, I'm sure they we're able to say it to me kay dako kaayo ang ma keep nila at age of maturiy. It wasn't from AXA but I'm sure same ra ila system.

We recommend nga sa mutual funds ra mag invest, not in stocks. Kay mutual funds invest in blue chip stocks as well. But if you know how to play with stocks, go for stocks for a way better return.
And most, if not all mutual funds recovered easily after the market crash, not just AXA. Kay all of them are just riding the same boat.

Di lang nako ma point out unsay mutual fund partner sa AXA diri sa Pinas, but Sunlife, Philamlife and Cocolife have their own mutual fund companies.

what if you die at age more than 80 what will happened to the annual premiums you pay for your term insurance? you get nothing because at age 70 it won't allow you to renew it.
Why buy term if you can afford whole life? If you wait 10 or 15 years (the 15 years premium is wasted if you don't die) and after 16 years your older and your life insurance premium will be more expensive.

Term Insurance is like gamble, if you die this year you win the sum insured but if you live your premium is good bye (no cash value).

There is also a single pay Investment-Link Life Insurance Product and there is already fund value the moment you buy.

The Fund Manager of AXA is Metrobank. And I believe that Metrobank and BPI are the best Investment firms in the Philippines.

[Metz]

How can a Whole Life be a Rip Off, imagine in Term Insurance you are paying every year until death. And if you die after the maximum renewable age of your term insurance you get nothing in return. it is only good if you die early or if you need financial protection while you still can't afford whole life. There is no money with loan or withdraw from term in-case you need money.

I have to admit "rip off" is a very harsh term. let's just say "it's not cost effective".
yes, we can't loan from term because it's pure insurance. But compared to standard insurance packages, it's very cheap. And the huge difference must be invested in mutual funds for better returns. And didto na mag loan or withdraw ang policy holder.

Usually whole life is limited pay, although its more expansive than Term insurance the huge portion of your premium is being invested to enable your cash value to self sustain your policy (you don't have to pay for life) Usually Limited pay is 5, 10, 15 and 20 yrs option.

BTID is also self sustaining bai. We will program it for 5 or 10 year pay and after ana, the mutual fund will sustain your policy until it ends, or renew it and until it ends for the second time.

in BTID (Buy Term and Invest the Difference)
it is 2 different product (Term Insurance and Investment). Term pay for life. You investment will not directly pay for your term.

I'm sorry bai, you have it wrong here. The investment will sustain the policy as needed.

Why not go to Investment Link Life Insurance it is 2 product in one (Life Insurance and Investment) and its life insurance will cover you up to age 100 not like term which is usually 60-75 yrs old. And with Investment link Life Ins. your just paying the insurance cost (cheaper than annual term). During Premium holiday (no longer paying) only the cost of insurance is charge to your fund value. You don't have to sell your investment to pay for your insurance its internal.

yes it looks 2 for 1, but nagkadugay imo policy it actually becomes just 1 product, which is savings with very slow growth. Kay ang imong savings nay ihatag sa pamilya nimo if dako na kaayo. Sa sugod ra mag risk ang Insurance company sa face value. The bigger your savings, the lesser they have to add to pay for your insurance.

Term insurance is like buying Made in China Product because you can't afford the original (Whole Life)
Although Made in China Product is a lot cheaper, Original will last longer and give you your money's worth.

no offense bai, but anyone familiar with BTID will find this really funny

Imagine buying a cheap product and you have to keep on buying because it has shorter life span compare to the more quality one which will last for a life time.

no whole life insurance package can match-up with BTID.
the only thing going for whole life right now is "sikat" sila. BTID is very popular in the US, and maybe after a decade, popular napud sa Pinas.


Thanks for posting your concerns regarding BTID, I don't think I can change your mind, but I hope the readers will go for BTID


Bottomline:

both whole life and BTID, insure and give savings.
BUT BTID will always beat whole life any time of the day.
mas barato, mas dako pa ang coveragemmakuha, and mas dako pa ang returns.


we just need to reach more people.

[Metz]

what if you die at age more than 80 what will happened to the annual premiums you pay for your term insurance? you get nothing because at age 70 it won't allow you to renew it.
Why buy term if you can afford whole life? If you wait 10 or 15 years (the 15 years premium is wasted if you don't die) and after 16 years your older and your life insurance premium will be more expensive.

Term Insurance is like gamble, if you die this year you win the sum insured but if you live your premium is good bye (no cash value).

There is also a single pay Investment-Link Life Insurance Product and there is already fund value the moment you buy.

The Fund Manager of AXA is Metrobank. And I believe that Metrobank and BPI are the best Investment firms in the Philippines.

example lang ha for a 30 yr old policy holder

cost for whole life would be around 30k
cost for 20 year term is around 10k.
so naay savings worth 20k diba? that's what you invest in mutual funds. dako pa kaayo ug return.

And whole life insurance is just a bundled term life insurance up to 99 + investments.
So sa whole life, a portion of what you payed for is actually payed for a "99 yr term insurance" and ang sobra gi-invest.
Grabe lang kadako ang maadto sa 99 yr term insurance kay perti man taasa sa coverage.
BTID ra gihapon na siya but murag value meal, gibundle nila and they will charge you heavily for managing it, and to think sayon ra kaayo pag manage.

So, I guess FAMI ang mutual fund sa AXA, kay FAMI is owned by Metrobank.