Updated: November 25, 2018
If given the choice, would you rather die too soon, or live too long? Well, I’m sure you’d choose the second option, unless you’re missing a few screws in your head.
Indeed, everyone wants to live a long and happy life. However, it’s a fact that nobody really knows when they’ll die.
And if we are to believe our country’s demographics, then the most we can hope for is live past the life expectancy in the Philippines, which is 71.66 years.
Interestingly, it’s been also found that Filipino men have a life expectancy of 68.72 years; while Filipina women are at 74.74 years.
Again, if we are to believe these demographics, then husbands (who are usually the providers) will have to make sure that their wives can live comfortably for about another six years after they die.
Of course, family roles are changing and both men and women, husbands and wives – are now equally empowered to be providers.
Alongside this change are improvements in science and health, whose advances have extended our life expectancy over the years – which means we can expect to live longer and healthier as the decades come.
So what do these statistics tell about our topic for today? Simply put, it’s all about being financially prepared for whatever may happen to us.
As I’ve said, nobody really knows when they’ll die, because that 71.66 years is just an average figure – which means some will die before they reach that age (knock on wood), while some will fortunately live way past beyond that number.
Dying Too Soon
How do you make sure that the financial needs of your loved ones will be taken cared of when you suddenly pass away?
The easiest solution is to have life insurance.
Building wealth takes time, while getting a life insurance policy only takes minutes.
When you do the second option, you immediately protect the financial future of your loved ones if any untoward incident happens to you.
Living Too Long
On the other end of the spectrum, how do you make sure that you’ll have enough money to spend if you manage to live beyond expectations.
In this case, the easiest solution is to have investments.
You can’t tell yourself, “I’ll just save enough money so I can live comfortably until I’m 70 years old,” because what if you live until 80 years old? Are you going to spend the last 10 years of your life in poverty?
By having investments, you create for yourself a surplus of money and income that will sustain you, and even your next generation.
Insurance and Investments
The income protection that a life insurance brings, plus the passive income that investments generate ensure that our financial future is well-accounted for.
The first option is to get life insurance and investments separately. You’ll be dealing with two offices though. One for the life insurance, and the other for the investments.
However, this is the more affordable option compared to the second choice, which is getting a product that act as both insurance and an investment.
This second option will be more expensive, but it does offer the convenience of just dealing with one account. And the product involved here is a Variable Universal Life Insurance, or simply VUL.
A VUL is a type of permanent life insurance that pays the death benefit to your beneficiary when you “die too soon”, but also generates income and builds on cash value like an investment which you will receive if you “live too long”.
Furthermore, let me tell you about a product which I’ve discovered lately…
An investment, life insurance, and healthcare – rolled into one.
Kaiser International Health Group Inc. is a Securities and Exchange Commission registered, and Philippine Department of Health approved company which provides health care to Filipinos, both here and abroad.
But unlike your traditional HMO (health maintenance organization), they provide a long-term health care product called the Kaiser Premium Health Builder.
This is a VUL-similar product that goes beyond providing life insurance and investment because it gives you the added benefit of having long-term healthcare.
The subtitle of this section says it all – it’s a life insurance product, that also builds on its cash value like an investment, which will generate passive income for you in the future.
But beyond the typical benefits of your traditional VUL such as life insurance and investments – it’s also a health savings account that offers health care benefits similar to an HMO.
Learning more about Kaiser Premium Health Builder
But if you want someone whom you can talk to personally and explain to you in greater detail about this product, then you can contact Dr. Jaime and Jocelyn Lorenzo at 09155522471 or email them at [email protected]
Furthermore, you should also attend the FREE Money Seminars at the IMG Wealth Academy to further enhance your financial literacy.
Demographics of the Philippines. Wikipedia, the free Encyclopedia. 27 October 2012.
Disclosure: International Marketing Group is a blog partner of this website.