Lets talk about the importance of Life Insurance

[lorenzoleo]

@Metz : Bisan ang iyang difference bisan I butang lag bonds, hehehe dako pa gihapon ug benefit kay sa I whole Life, bisan 5% per annum lang ang investment. Hehehe! Kuha pa ang Face amount then kuha pud ang bonds incase he/she dies too soon, T_T! Nindot jud palit lang kag Term Insurance then ikaw mismo manage ug invest sa difference. Take charge of you own money, don't let others do it for you.

Invest where BPI invest your deposits, Invest where metrobank invest your deposits, Invest where BSP Provident Fund invest your retirement, Invest where the insurance companies invest your savings component. Get a Financial Adviser, that will push you Term Insurance, Get a Financial Adviser that doesn't after for commissions. Find a Financial Adviser that will guide you where the Insurance and banks invest your premiums. The best Financial Adviser is you, and get educated about these institutions para dili mo ma uto-uto or ma-ilad sa imung agent. T_T!.

[wealthyhead]

buy a 20-year level term life insurance. be protected properly. and invest your money where it can grow bigger.

"...consumer reports, smart money magazine, consumer federation of america, money magazine, fortune magazine, have all done articles... saying... no one with any level of financial sophistication any longer buys any kind of cash value insurance.."

[lorenzoleo]

buy a 20-year level term life insurance. be protected properly. and invest your money where it can grow bigger.

"...consumer reports, smart money magazine, consumer federation of america, money magazine, fortune magazine, have all done articles... saying... no one with any level of financial sophistication any longer buys any kind of cash value insurance.."

Correct, Philippines is really 30 years behind the U.S. in terms of insurance education.
In a fast changing world requires change in solutions, the solutions before is not anymore suitable in the current problem.
Before saving money can retire you in comfort but today, saving is not anymore a solution, you need to invest and outpace inflation. You need to save the right way versus the wrong way.

[wizard_jamex]

Correct, Philippines is really 30 years behind the U.S. in terms of insurance education.

Kaluoy sad sa Philippines...30 years behind sa US...tsk tsk tsk tsk.....

In a fast changing world requires change in solutions, the solutions before is not anymore suitable in the current problem.
Before saving money can retire you in comfort but today, saving is not anymore a solution, you need to invest and outpace inflation. You need to save the right way versus the wrong way.

Correct, the solution before is not suitable in this time, because of the inflation...

[mckoy_slipstream]

if naa diay tanan btid, tanan ma excite na matigulang. hehe..

[Metz]

if naa diay tanan btid, tanan ma excite na matigulang. hehe..

haha sakto.
karon gani ga exercise jud ko kay ganahan ko makatilaw sa ako investments

but I walk around without worries, kay if something happens to me, I'm sure ok ra ako anak.

[honey2723]

mu-share lang ko sa bag-o nako nakuha nga info sa RFC course recently.

if you have a life insurance policy and your beneficiary is an irrevocable beneficiary - the proceeds will not form part of your estate. That means, kung magkwentahay na sa imong mga assets and all, dili ma-apil ang insurance proceeds.

but ang funds nimo sa MF or any other investment, kay ma-apil ug ihap sa imong estate. that means, if ever something happened to you and naa na kay ubay2x nga funds sa MF, ma-apil to siya ug ihap sa estate tax nga bayran sa imong loved ones.

To illustrate:

MY CLIENT GETS 5.5M in savings or 6.5M IF HE DIES! and these are very conservative estimates.

Considering this scenario:

MF Funds = P5,573,399.77

Bureau of Internal Revenue Website

Effective January 1, 1998 up to Present

If the Net Estate is:

Over----------------But not Over---------The Tax Shall be-------Plus------Of the Excess Over
0-------------------P 200,000.00---------- Exempt
P200,000.00-----------500,000.00-------------0-------------------5%------P 200,000.00
P500,000.00---------2,000,000.00----------P 15,000.00------------8%--------500,000.00
2,000,000.00--------5,000,000.00-----------135,000.00-----------11%------2,000,000.00
5,000,000.00-------10,000,000.00----------465,000.00-----------15%------5,000,000.00
10,000,000.00----------------------------1,215,000.00-----------20%---- 10,000,000.00


Assuming his MF is part of his NET estate, the tax to be paid for his MF fund alone would be:

MF Fund ------ P5,573,399.77
Less ---------- 5,000,000.00
=======================> 465,000.00 (Base tax)
------------------573,399.77
x -----------------------15% +
=======================> 86,009.97
===================================
TOTAL TAX due for MF alone: P551,009.97

That means, ang gi-ampingan nga MF kay makuha-an pa ug P551,009.97.

That means ang net nga madawat gkan sa MF would be: P5,022,389.80. Decreasing your MF fund...

But if this fund came from a VUL* (variable unit-linked insurance) or ILP* (investment-linked protection), and the beneficiaries were under an irrevocable status, the funds would be TAX-FREE! Remember, the funds due to the estate would only be released once all dues (taxes and debts) have been cleared. Which would usually take about a month. But if under a life insurance proceed and all documents are set, then the proceed can be easily released to the rightful beneficiaries.

*VUL / ILP - mutual-fund structured investment with insurance.

Just a suggestion, try to incorporate the tax due upon one's death before suggesting MF.

[prince04]

mu-share lang ko sa bag-o nako nakuha nga info sa RFC course recently.

if you have a life insurance policy and your beneficiary is an irrevocable beneficiary - the proceeds will not form part of your estate. That means, kung magkwentahay na sa imong mga assets and all, dili ma-apil ang insurance proceeds.

but ang funds nimo sa MF or any other investment, kay ma-apil ug ihap sa imong estate. that means, if ever something happened to you and naa na kay ubay2x nga funds sa MF, ma-apil to siya ug ihap sa estate tax nga bayran sa imong loved ones.

To illustrate:



Considering this scenario:

MF Funds = P5,573,399.77

Bureau of Internal Revenue Website

Effective January 1, 1998 up to Present

If the Net Estate is:

Over----------------But not Over---------The Tax Shall be-------Plus------Of the Excess Over
0-------------------P 200,000.00---------- Exempt
P200,000.00-----------500,000.00-------------0-------------------5%------P 200,000.00
P500,000.00---------2,000,000.00----------P 15,000.00------------8%--------500,000.00
2,000,000.00--------5,000,000.00-----------135,000.00-----------11%------2,000,000.00
5,000,000.00-------10,000,000.00----------465,000.00-----------15%------5,000,000.00
10,000,000.00----------------------------1,215,000.00-----------20%---- 10,000,000.00


Assuming his MF is part of his NET estate, the tax to be paid for his MF fund alone would be:

MF Fund ------ P5,573,399.77
Less ---------- 5,000,000.00
=======================> 465,000.00 (Base tax)
------------------573,399.77
x -----------------------15% +
=======================> 86,009.97
===================================
TOTAL TAX due for MF alone: P551,009.97

That means, ang gi-ampingan nga MF kay makuha-an pa ug P551,009.97.

That means ang net nga madawat gkan sa MF would be: P5,022,389.80. Decreasing your MF fund...

But if this fund came from a VUL* (variable unit-linked insurance) or ILP* (investment-linked protection), and the beneficiaries were under an irrevocable status, the funds would be TAX-FREE! Remember, the funds due to the estate would only be released once all dues (taxes and debts) have been cleared. Which would usually take about a month. But if under a life insurance proceed and all documents are set, then the proceed can be easily released to the rightful beneficiaries.

*VUL / ILP - mutual-fund structured investment with insurance.

Just a suggestion, try to incorporate the tax due upon one's death before suggesting MF.

nice ni siya nga illustration dah... cge keep em coming pa mga masters para ma educate mi about these things...

[Metz]

mu-share lang ko sa bag-o nako nakuha nga info sa RFC course recently.

if you have a life insurance policy and your beneficiary is an irrevocable beneficiary - the proceeds will not form part of your estate. That means, kung magkwentahay na sa imong mga assets and all, dili ma-apil ang insurance proceeds.

but ang funds nimo sa MF or any other investment, kay ma-apil ug ihap sa imong estate. that means, if ever something happened to you and naa na kay ubay2x nga funds sa MF, ma-apil to siya ug ihap sa estate tax nga bayran sa imong loved ones.

To illustrate:



Considering this scenario:

MF Funds = P5,573,399.77

Bureau of Internal Revenue Website

Effective January 1, 1998 up to Present

If the Net Estate is:

Over----------------But not Over---------The Tax Shall be-------Plus------Of the Excess Over
0-------------------P 200,000.00---------- Exempt
P200,000.00-----------500,000.00-------------0-------------------5%------P 200,000.00
P500,000.00---------2,000,000.00----------P 15,000.00------------8%--------500,000.00
2,000,000.00--------5,000,000.00-----------135,000.00-----------11%------2,000,000.00
5,000,000.00-------10,000,000.00----------465,000.00-----------15%------5,000,000.00
10,000,000.00----------------------------1,215,000.00-----------20%---- 10,000,000.00


Assuming his MF is part of his NET estate, the tax to be paid for his MF fund alone would be:

MF Fund ------ P5,573,399.77
Less ---------- 5,000,000.00
=======================> 465,000.00 (Base tax)
------------------573,399.77
x -----------------------15% +
=======================> 86,009.97
===================================
TOTAL TAX due for MF alone: P551,009.97

That means, ang gi-ampingan nga MF kay makuha-an pa ug P551,009.97.

That means ang net nga madawat gkan sa MF would be: P5,022,389.80. Decreasing your MF fund...

But if this fund came from a VUL* (variable unit-linked insurance) or ILP* (investment-linked protection), and the beneficiaries were under an irrevocable status, the funds would be TAX-FREE! Remember, the funds due to the estate would only be released once all dues (taxes and debts) have been cleared. Which would usually take about a month. But if under a life insurance proceed and all documents are set, then the proceed can be easily released to the rightful beneficiaries.

*VUL / ILP - mutual-fund structured investment with insurance.

Just a suggestion, try to incorporate the tax due upon one's death before suggesting MF.

thank you for pointing it out
murag I still need to learn more about estate taxes.

so now if dako na ang naa sa ako MF, I will take out another 1M insurance(or more) to cover my estate taxes for the investment(and other properties) and make sure I do it before 65. And I can easily take it out from my gains in MF.

EDIT: honey2723: do I still need to take out another insurance? nga naa may 1M life insurance policy with the mutual fund at age 70 kay until 72 man ako coverage. so covered ra gihapon ang 500k nga estate tax required by BIR.

[lorenzoleo]

thank you for pointing it out
murag I still need to learn more about estate taxes.

so now if dako na ang naa sa ako MF, I will take out another 1M insurance(or more) to cover my estate taxes for the investment(and other properties) and make sure I do it before 65. And I can easily take it out from my gains in MF.

EDIT: honey2723: do I still need to take out another insurance? nga naa may 1M life insurance policy with the mutual fund at age 70 kay until 72 man ako coverage. so covered ra gihapon ang 500k nga estate tax required by BIR.

Pwdi ra baya na BTID lang ka, then kung matiguwang na, mas maayo imu assets hinay hinay transfer mga anak para naa sila pang bayad estate tax. Pareho style nila Gokongwei, transfer dayon didto ni Lance.

BTID nimu 20 year level term, then renew on another 20 years, then mintras naa pa imung BTID na coverage, hinay hinay na transfer didto mga anak mga assets. Ikaw jud take control imu kwarta.