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Is 59K annual premium too expensive for a sort of 4-in-1 product?

Beannie · 9 · 1617

Beannie

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Magandang araw po! :help: I've been looking for a good Insurance package for me and my husband. We are both 32 year-olds and based outside the Philippines.I have been offered a package with these benefits during the 7-year accumulation period:

1. Annual Physical Examination
2. Dental Health Benefits
3. Basic Medical Health Benefits
4. Member’s choice of Room and Board (1,000.00) -
5. Yearly Benefit Limit of Php60,000/year
6. Waiver of installment due to Death/ Credit Life
7. Waiver of installment and Premiums due to Total and Permanent Disability
8. Term Life Insurance Coverage (20 years)
9. Accidental Death & Dismemberment
10. Family Assistance Service

Then start of the 8th year towards the 20th year I'll only have:

1.Annual Health Benefit which consists of:
   a. Out-Patient Benefit
   b. In-Patient Benefit
   c. Pre-Existing
   d. Dreaded Illness
   e. Maternity Benefit
   f. Annual Health Benefit plus the additional Health Benefit
2. Long Term Care Benefit
3. Long Term Care Bonus and Additional Health Benefit

At the end of the 20th year its said that I would have an accumulated long term care benefit of 1.1M assuming that I wasn't able to utilize my premiums.
Then in case I decide not to withdraw the accumulated amount, I'd have 2.75M and 4.43M by ages 60 and 65 respectively with annual lifetime healthcare.

Is this a good deal for a 59K/year premium? Payment period will be for 7 years with a contract price of 411K. Any thoughts on this? Hope the forum experts and agents here could advice me on what to clarify regarding the package before I dive into this. Thanks in advance!  :thankyou:


bauer

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@Beannie,

During your year 1 to 7,  How much is your term life insurance value?  Both spouses or each spouse?

What do they mean member's choice of room and board with 1,000?  Is it the maximum value of room and board?

8th year to 20th year of your policy,  How much will be the annual medical benefit maximum limit value?

If you policy premium is 59k x 7 years, at the end of your paying period, you gave the insurance company about 413k.

You see, if I save the 413k at the end of 7th year, I can make about 1.652M at end of 17th year, 3.304M at end of 23rd year.  If I am 32 years old now just like your age plus 23 years, my savings and investment will be about 3.304M by the time I am 55 years old.

Now, did you ask them, that in those 20 years you are covered with their health benefit policy, in case you made a SINGLE claim and you availed of the health benefit, Do they forfeit the promise money during your old age?  If they will not forfeit it, how much will deduct from the promise amount of money any claims you availed?

This is a complex offer by the insurance company.  It is an all-in-one product for life insurance, health care, and pension plan.  Your putting all egg in one basket on this one regardless if it is expensive or not (premiums).



Beannie

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@bauer ung term life insurance value po ba is the amount your beneficiary will receive in case of untimely death? (please forgive my ignorance - I really need help in choosing the best insurance package for me since I'm not even familiar with insurance terms) Sa sample computation that I have, term insurance value is 450k for each plan holder (spouse). Tig isa po kami plan na 413k ang contract price.
Medyo confused ako dito kse there were a lot of factors and terms he discussed. But if I understood correctly, in case of untimely death during the paying period my beneficiary will receive term insurance (450k) + long term care benefit (100k) + long term care benefit bonus (350k). Me additional pa daw long term care benefit (100k) + long term care benefit bonus (350k) in case of accidental death. so pag normal death 900k for 20 years daw un sir. pag accidental death 1.35M. Tas ung HMO part ng plan would be transferred daw to my beneficiary.
Yun naman pong room and board na 1000 is per day limit na sasagutin nila in case of hospitalization.
Start ng 8th year I'll have 69k annual medical benefit max. limit value and increasing sya til 20th year to 716k. they call it the long term care benefit.
These figures were all under the assumption that I haven't made a claim the whole 20 years.
I haven't yet confirmed what will happen to the figures once a claim is made. I obviously still have a lot to investigate before deciding on getting this haha  :D

May I ask pala sir what earning rate ung inassume nyo for the 413k if you personally invest it?

My husband and I have also started building our portfolio in stocks, mutual funds, and meron na kming isang real estate investment. I'm just worried coz either one of us doesn't have insurance. We already have a 6 month old baby and we are both working full time.

I just found the package attractive because i think it takes care of all the primary protections we need to have. Health Insurance, Life Insurance, Healthcare Savings (long term) and Emergency fund. It's just that I think the premiums are a big commitment (almost 120k annually for both my husband and me).

Assuming po na what I've understood about the package is correct sir, would you consider it a fair deal for the premium we have to pay?

« Last Edit: Jun 25, 2014, 01:51 PM by Beannie »


bauer

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@Beannie,

I believe the company that offers you this 4-in-one package is based here in the Philippines while your both working or based overseas?

If this is the case, I strongly advise you NOT to get a 4-in-one plan.  Why?  If the company suddenly closes or goes bankrupt, all your plan preparation for your future needs will be haywire.

It is better to get a life insurance with a reputable company preferably 50 years old or better yet 100 years old or above.  you may either choose a term life insurance (your coverage is limited to a number of year only) or a whole life plan (your coverage is until the age of 99).  I suggest you get the latter.

I do not see the need for you to get a medical or health benefit plan because you are both based overseas.  It is just a waste of your money.  Get a health insurance where you live and work so you can avail the benefits.

You may also get a pension plan if you wish with a stable pension plan company.  Also, you may secure a memorial plan so in case of your untimely death, your burial will be taken care of.

I assure you that if you get the pre-need plans using different vendors, the total premiums you will pay will be lower compared with what you will pay for the company that offered you the 4-in-one plan.


bauer

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May I ask pala sir what earning rate ung inassume nyo for the 413k if you personally invest it?

 

20% return per year compounded.
« Last Edit: Jun 25, 2014, 02:45 PM by bauer »


Beannie

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@Bauer noted sir. thanks for the insight. A real eye opener. Actually my husband and I are building our portfolio for our retirement fund (mutual funds) that could serve as our pension in retirement age right? Then I might not really need a pension plan too. Ibig sabihin kahit life insurance na lng tsaka memorial plan ang iconsider namin.
Kaso bakit nga pala whole life ang suggested nyo for us sir? Dpo ba mas mahal daw sya compared sa term life?


bauer

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^ Your doing good right now in your investment strategy.  Your mutual funds will serve as your pension but you may wish to expand it by investing in UITFs offered by banks.

Term life is usually lower in premiums if you are still young but when you get old, term life cost higher in premium payment.

Whole life usually cost higher initially but in the long term, it will be cheaper for you compared to term insurance.  In addition, whole life plans accumulates savings and dividends (not available for term life).  Get a whole life plan with a fixed period of payment.  The dividends it will earn at the end of your paying period will be use to sustain your premium payments for your life insurance protection.


Beannie

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Thank you sir for indulging my ignorance.. :D I am truly grateful. Hope to learn a lot more from this group in the future. Sana wag kayo magsawa on imparting your knowledge to newbies like me. Cheers!  :cool2:
 


Beannie

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Still haven't found the most suitable life insurance for me and hubby.. I have been asking quotations from Philippine Insurance companies through their online customer service facilities and its taking darn long. So far, only one 2 have given me quote. One PMTer had given me a straight quotation (thank you!), just took him overnight, and I was half expecting my correspondence with the other insurance companies would be half as fast.. Silly me... Are there other PMTers who represent insurance companies? I'd really love to hear from you. Just wanna compare different products before we decide :help:


 


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