Get guaranteed cash payouts every 2 years and lump sum cash after 20 years with Basic Assure 10. This product has just been released last week of November 2020 and we would like to share the beauty of this product to you.
Please watch a quick video of this product here:
To explain briefly the product see this illustration:
In the example above it is for a 30 year old who wants to get this plan to receive guaranteed payouts and life insurance plus health insurance benefits.
Let us see how this product is useful for this client. Assuming the client is 30 years old here is how it works:
- Client pays P138,940 every year for 10 years. To break down the premiums paid:
a. P100,000 per year is for the investment portion. This is equivalent to 1M pesos (10 years x P100k)
b. P38,940 per year is for the 4M protection benefit broken down as follows:
-P2M Life Insurance Benefit upon client’s death the family will receive P2M lump sum
-P2M Critical Illness Benefit upon the diagnosis of critical illnesses like cancer, heart attack and stroke the client will receive lump sum of P2M
- At the end of the 5th year the client will receive P72,500 and every 2 years thereafter. This is equivalent to 7.25% net of the P1M investment paid. In effect the annual interest is 3.625% every year, however you receive this even if you have not paid the entire 10 years yet because the payout starts on the 5th year.
- The product matures and terminates after 20 years
- The investment amount of P1M will be returned back after 20 years
- The investment portion can be loaned in case of emergencies within 20 years. For example the client needs money for sudden emergencies he does not need to borrow money from the bank. He just simply goes to Insular Life, bring policy contract and loan the cash values. The amount loanable is 80% of the cash values as follows:
In summary here are the benefits:
1. 7.25% net interest payout every 2 years or 3.625% net interest payout per year on the investment amount
2. 4M insurance coverage (2M life and 2M critical illness for only P38,940 for 10 years but covered for 20 years). It is as if you the client paid P4867.50 per million per year for 20 years (computed as P38,940 divided by 4 divided by 2).
3. Return of investment amount of P1M after 20 years.
*Note that most banks give up to 4% gross interest rate per year on their savings. Net of 20% tax on bank savings the net interest rate for a 4% gross interest rate is only 3.20% per year.
Kindly get in touch with your financial advisor for more information and so we can send proposal to your email.