Insurance and retirement plan rolled in to one!

Hi Finance Maverick,

I am 30 years old, male, I want to protect my family just in case something happens to me. I  also want to build a retirement fund for myself. I want to have with life insurance with 2.0 million coverage and at the same I want to accumulate 5 million pesos for my retirement fund at age 65.    

Are there any financial instruments in the market that could help me achieved my goals?

You can inquire about the Variable Unit Linked Insurance available in the market. It is a comprehensive product that combines both insurance and investment into one (Insurance plus mutual funds). Part of premium payments goes to insurance and part goes to investments. These investments are being managed by fund managers.

 What is mutual fund? The  Investment company pools the assets of small and large investors. Funds are invested in stocks, bonds or combination of both based on their risk profile.

Financial goals:

1.       Insurance coverage              : 2.0 Million pesos

2.       Retirement fund  at  age 65 :  5.0 Million pesos

 VUL product to match YOUR DESIRED GOALS: 

46k includes excess 

** Note: there are also payment terms shorter than 20 years like 15, 10 and 5 years based on other    VUL products. 


Projected Retirement  Fund Value at  age 65 years old.is between 1.8 M to 8.57 M, depends on the fund performance.

At 4.0%  average yield we can achieve  1.8M retirement fund
     8.0% average yield we can achieve 5.17 M retirement fund
     10.0% average yield we can achieve 8.57 M

## We are just assuming that yield will be at 8.0% , please see table below.


**Premiums and performance vary from company to company.

** Note: yields are not guaranteed, But based on historical performance, it can perform better than 10% ( equity and balanced).

You can ask the Financial advisors from companies they represent for the actual performance of their funds.

Note: 5.0 Million pesos fund  

 Fund performance of equities,bonds and balanced also varies.


**If case something happens to the insured, beneficiaries get the fund value plus the insurance coverage.

E.g.
 Fund value during time of death, let's say 8.0M, beneficiaries get 10.0 M (8.0 +2.0).



For additional information, please contact your financial advisor, or  you can write the author for consultation.