"PWEDE NA!

" INSURANCE PLANNER

This "Pwede Na!" Insurance Planner is a simple guide to determine your family's financial needs in the event of your untimely
death or total disability. It will also help you determine the amount of life insurance coverage you will require to provide ample
financial protection for your family.

Please note that the following is merely a guide. You particular life situation may require different assumptions. Nevertheless,
this guide is a good start when you sit down and discuss your insurance needs with your insurance broker.
*******************************

There are usually two types of funds your family will need in the event of your untimely death or total disab
1) short-term funds; and 2) medium- to long-term funds. The sum of these two types of funds minus the s
total of your present assets, including your current insurance coverage and any income stream that would
remain even with your death or total disability, is your CAPITAL GAP. This Capital Gap is provided for by
buying additional insurance. Please refer to the section on "How Much and Which Type of Life Insurance
Should I Get" in Chapter 8 of "Pwede Na!".

Continue

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Please fill in the required data:

1. In case of your untimely death or total disability, what amounts do you think will your family immediatley need to address
the following:
Medical bills
Funeral expenses
Estate taxes
Debt liquidation

1,000,000.00 (your estimate of last hospitalization expenses)

50,000.00
200,000.00
2,000,000.00 (include housing and car loans)

2. With you gone or totally disabled, how much annually will your family need to provide for their needs and current lifestyle.
Rent Payment
Spouse's retraining

20,000.00 (if you are renting a house/apartment, include rent for the next 5 years)
100,000.00 (to equip your spouse in rejoining the workforce)

Children's education

500,000.00

Contingency Fund

160,000.00 (refer to the discussion on Contingency Funds in "Pwede Na!")

Others

300,000.00 (include annual living expenses)

3. Give your estimates on your available resources as follows:

Life Insurance

5,000,000.00 (include personal and group insurance)

Savings

500,000.00

Investments

500,000.00 (if you're selling investments, price them at their market value; otherwise
just consider the annual income that can be derived from them)

Other Assets

300,000.00 (include only assets that your family may sell; price at their market value

Business Income

600,000.00 (annual income that would remain even with your death or total disability
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Please make sure you fully answered the three questions above.
Your answers were as follows.
Medical bills
Funeral expenses
Estate taxes
Debt liquidation

1,000,000.00

Rent Payment

20,000.00

50,000.00

Spouse's retraining

100,000.00

200,000.00

Children's education

500,000.00

Contingency Fund

160,000.00

2,000,000.00

Sub-total

3,250,000.00

Others

300,000.00
Sub-total

Life Insurance

5,000,000.00

Savings

500,000.00

Investments

500,000.00

Other Assets

300,000.00

Business Income
Sub-total

1,080,000.00

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600,000.00
6,900,000.00

Based on the foregoing, your Capital Gap is equivalent to:

2,570,000.00 . If your Capital Gap is negative, then this is
additional amount of life insurance that you will need. If your Capital Gap is positive, then your task is to keep it that way. Plea
remember that certain other factors, like inflation and other taxes, which may impact on the results of the above computations
to be factored in. Again, this guide is meant merely as a starting point in your discussions with your insurance broker.

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Pre-Need Yield Ca

the event of your untimely

ll require to provide ample

ssumptions. Nevertheless,

ely death or total disability:

es of funds minus the sum
ome stream that would
Gap is provided for by
Type of Life Insurance

Pre-Need Yield Calculator

diatley need to address

eds and current lifestyle.

rent for the next 5 years)

s in "Pwede Na!")
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eir market value; otherwise

derived from them)
price at their market value)

your death or total disability)

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Gap is negative, then this is the

is to keep it that way. Please
of the above computations need
insurance broker.
Pre-Need Yield Calculator

The "Pwede Na!" Calculator

For better view, deselect all toolbars, except for the Worksheet Menu Bar, by clicking on "Tools" then "Customi
Also, deselect all "Show" and "Window" options under "Tools", "Options", "View".
For macros to work, please click on "Tools", "Options", "Macro Security", "Medium", "OK". Then save the calcula
Please read the Disclaimer before using this Calculator.

Preparing for College/Retirement

Life Insurance Calculator

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PLEASE READ

Disclaimer: This is not an offer to sell nor a solicitation of an offer to enter into a transaction. The calculations set forth herein are intended for discus

purposes only. There is no guarantee about the accuracy or completeness of the calculations set herein. The author does not accept liability for a

direct or consequential losses arising from its use. Prior to making any investment decision, you should fully understand the economic risks and m
as well as the legal, tax and accounting characteristics and consequences of the transaction, and make your own determination that the investme

consistent with your objectives and that you are able to assume the risk. The contents of this electronic file are NOT to be reproduced or distribute

any other person except to those who purchased the book "Pwede Na - The Pinoy Guide to Personal Finance". The format and formulas of this
electronic file may NOT be altered in any way without prior writtern persmission from the author.

culator

licking on "Tools" then "Customize".

", "Options", "View".
m", "OK". Then save the calculator file.

Calculator

Pre-Need Yield Calculator

ions set forth herein are intended for discussion

ein. The author does not accept liability for any

d fully understand the economic risks and merits,

e your own determination that the investment is

c file are NOT to be reproduced or distributed to

al Finance". The format and formulas of this

sion from the author.

The "Pwede Na!" College and Retirement Questionnaire

Please answer the following questions:

1. If you are preparing for your child's college education, how much annually would that college education cost today? If you ar
preparing for your retirement, what is the annual cost today of the lifestyle you would want to enjoy in the future?
Enter the amount:

120,000.00

2. How long would it take for someone to complete the college course that you are eyeing for your child? If you are looking at
retiring, how many years would you be in retirement?
Enter the number of years:

4.00

3. How many years is your child away from entering college? Or, how many years do you have before retirement?
Enter the number of years:

16.00

4. How many years do you want to invest to provide for your child's college education or your retirement?
Enter the number of years:

16.00

5. How many periods in a year do you want to invest to provide for your child's college education or your retirement?
Enter the number of periods:

12.00
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6. If you are investing at the beginning of each period (e.g. month or year), enter "1". Otherwise, enter "0".
Enter "1" or "0":

7. How much of an investment return per annum do you expect from your investment?
Enter percent return:

8.00%

8. How much is your estimate for inflation per annum of the cost of college tuition or your lifestyle?
Enter percent inflation:

14.00%

PLEASE CLICK ON THE DESIRED BUTTON

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Input & Results Summary

College Output Sheet

Retirement Output Sheet

Life Insurance Calculator

Loan Calculator

Pre-Need Yield Calculator

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uestionnaire
education cost today? If you are
enjoy in the future?

our child? If you are looking at

before retirement?

n or your retirement?

rement Output Sheet

Need Yield Calculator

DATA INPUT SHEET

Current Annual Cost of Lifestyle/College
Years in Retirement/College
Years to Retirement/College
Number of Years to Invest
Period(s) Per Year
If amortization at beginning of period, "1", else "0"
Investment Return
Inflation Rate
Future Value After Investing Years
Periodic Investment
Period(s) in Investing Years

120,000.00
4.00
16.00
16.00
12.00
0
8%
14%
PHP 4,243,592.25
PHP 10,959.43
192.00

College Output Sheet

Life Insurance Calculator

Retirement Output Sheet

Loan Calculator

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pesos
years
years
years
months
per year
per year

months

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Total Peso Requirement

Total Investment
Gain on Investment

PHP 4,805,349.07
2,104,210.90
PHP 2,701,138.17

After reviewing your data entry

click the appropriate output sheet.
Or, click on the desired calculator.

PWEDE NA!
The Complete Pinoy Guide to
Personal Finance

COLLEGE OUTPUT SHEET

Length of College Course

4 years

Total Cost of College Tuition Fee over length of College Course Now

PHP 480,000.00

Total Cost of College Tuition Fee over length of College Course in the Future

PHP 4,805,349.07

Years to Start of College Course

16 years

Assumed Net Investment Return

8.00% per year

Assumed Inflation Rate

14.00% per year

Expected Number of Years to Invest

16 years

Derived Monthly Investment Amount

PHP 10,959 per month

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Retirement Output Sheet

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RETIREMENT OUTPUT SHEET

Expected Years in Retirement

4 years

Total Cost of Retirement over length of Retirement Period Now

PHP 480,000.00

Total Cost of Retirement over length of Retirement Period in the Future

PHP 4,805,349.07

Years to Start Retirement

16 years

Assumed Net Investment Return

8.00% per year

Assumed Inflation Rate

14.00% per year

Expected Number of Years to Invest

16 years

Derived Monthly Investment Amount

PHP 10,959 per month

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College Ouput Sheet

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LOAN CALCULATOR
Modify only the data in yellow font,
Finding Effective Interest Rate (declining balance)
Full Price
Downpayment
Loan Amount/Base Price
Amortization(s)
Years to Amortize
No. of Period(s)/year

50,000.00
0%
50,000.00
PHP 2,500.00
2.00
12.00

If amortization at beginning of period, "1", else "0".

Effective Interest*
Effective Interest*

pesos
pesos
per period
year(s)

0
1.51% per period
18.16% per year

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The Complete Pinoy Guide

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*Does not include effect of documentary stamp taxes and lenders' fees.
Finding Amortization

Finding Interest Rate (add on rate)

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Life Insurance Calculator

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LOAN CALCULATOR
Modify only the data in yellow font,
Finding Effective Interest Rate of Add On Rate
Full Price
Downpayment
Loan Amount/Base Price
Add On Rate
Amortization(s)
Years to Amortize
No. of Period(s)/year
If amortization at beginning of period, "1", else "0".
Effective Interest*

50,000.00
0%
50,000.00
1.00%
PHP 2,583.33
2.00

pesos
pesos
per month
per period
year(s)

12.00
0
1.80% per month

PWEDE NA!

The Complete Pinoy Guide

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Effective Interest*

21.57% per year

*Does not include effect of documentary stamp taxes and lenders' fees.
Finding Interest Rate (declining balance)

Finding Amortization

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Life Insurance Calculator

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LOAN CALCULATOR
Modify only the data in yellow font,
Finding Amortization
Full Price
Downpayment
Loan Amount/Base Price
Years to Amortize
No. of Period(s)/year
Interest Rate
If amortization at beginning of period, "1", else "0".
Amortization(s)

730,000.00 pesos
20%
584,000.00 pesos
5.00 years
12.00
14.00% per year
1
PHP 13,431.95 per period

Preparing for College/Retirement

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Finding Interest Rate (add on rate)

Finding Interest Rate (declining balance)

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The Complete Pinoy Guide to
Personal Finance

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PWEDE NA!
The Complete Pinoy Guide to
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te (declining balance)

PWEDE NA!
The Complete Pinoy Guide to
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(add on rate)

PRE-NEED CALCULATOR

Modify only the data in yellow font.

Pre-Need Effective Yield (on equal premiums with lump sum payment)
Contract Price
Maturity Period
Premium Payment(s)
Years to Pay
No. of Period(s)/year
Effective Yield

100,000.00
20.00
500.00
10.00
12.00
3.40%

pesos
years
per period
years

Yield on Uneven Premiums/Payout

per year

Compute Effective Yield

Click the above button to find out the effective

yield on your pre-need plan.

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The Complete Pinoy Guide to
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Pre-Need Effective Yield (on uneven annual premiums and payouts)

Note: Input first premium

payment in period "0".

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The Complete Pinoy Guide to
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Year
Number
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

Pre-Need
Premiums
10,000.00
-

Payouts/
Dividends
18,173.59
-

Net Premiums/
Payouts
(10,000.00)
18,173.59
-

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16
17
18
19
20

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yellow font.

Yield on Uneven Premiums/Payouts

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ete Pinoy Guide to

onal Finance

Yield
6.16% per year

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