INVESTMENT 101

Monthly Price Number Total

Investmen Per of Shares Number
t Share Earned of Shares
Accumulate
d

Month 1 100 100 1 1

Month 2 100 50 2 3
Month 3 100 25 4 7
Month 4 100 20 5 12
Month 5 100 25 4 16
Month 6 100 50 2 18
Money cost averaging
Buy more when the price is low
Get the profit when the price is high & buy when the price is low

WHICH IS BETTER?
Monthly A B C
Investment Price Per Share Price Per Share Price Per Share
Month 1 100 10 10 10
Month 2 100 12 7 5
Month 3 100 14 6 3
Month 4 100 16 5 1
Month 5 100 18 7 2
Month 6 100 20 10 5

Monthly Price # of Price # of Price # of

Investme Per Share Shares Per Share Share Per Share Shares
nt (A) (B) s (C)
Month 1 100 100 10 10.00 100 10 10.00 100 10 10.00
Month 2 100 100 12 8.33 100 7 14.29 100 5 20.00
Month 3 100 100 14 7.14 100 6 16.67 100 3 33.33
Month 4 100 100 16 6.25 100 5 20.00 100 1 100.00
Month 5 100 100 18 5.56 100 7 14.29 100 2 50.00
Month 6 100 100 20 5.00 100 10 10.00 100 5 20.00
TOTAL 42.28 85.25 235.00
AMOUN 845.6 852.5 1,175.0
 T 0 0 0
2

LIFE INSURANCE 101

What if I die too soon? ... Who will take care of your family?
Who will fund for your childrens education, healthcare, shelter, food & other needs?
Who will pay for your hospital bills & funeral expenses?
Solution: Income Replacement Protection!
To have peace of mind, provide proper protection (Investment or Insurance) for your family
while building up wealth/passive income. Ensure that income will continue even in
case of death of a breadwinner!

Whats your option to properly protect your family?

INVESTMENT o INSURANCE?
r
1 = 1 1 = 100
10 = 10 10 = 1,000
10,000 = 10,000 100 = 10,000
100,000 = 100,000 1,000 = 100,000
1,000,000 = 1,000,000 10,000 = 1,000,000
Insurance -a smarter investment! The best protection against loss of
income!
If anything happens to you, all the money you wanted to save in the future for
your family would be available to them instantly.

Steps to Getting Life Insurance:

Step 1. Determine How Much Coverage You
Need
What is more important to you? Your Family, Your House or Your
Car?
How much insurance is enough to properly protect
your family?
How much is your family worth to you?
How much insurance is enough to ensure that life will continue in the
untimely death of the breadwinner?
How much income your family needs every year to cover their
expenses until such time they have fully adjusted to life without
you?
 How much is enough to replace your income, to finance your
childrens education, food, shelter, pay estate tax, pay debts,
hospital bills, funeral expenses, etc.
The ballpark figure ranges from 10 to 20 times of your annual
income.

If you want an accurate financial need analysis to help you

determine the right insurance coverage, use The HIDEE
Method!
The HIDEE Method:
Less: Less: INSURANCE
Amount Savings & Insurance-
You Need
Investment in-Force3
2

Health & Medical Needs ________ ________ ________ ________

Income Replacement ________ ________ ________ ________

Debts/Loans ________ ________ ________ ________

Estate Tax & Administration ________ ________ ________ ________

Education ________ ________ ________ ________

Total ________ ________ ________ ________

Do you want to provide your family total protection or
part only?
Whats your priority?
Health & Medical Needs
Income Protection (Annual Income x 10) Income replacement
Debts/Loans Debts to be paid off
Estate Tax, Administration & Probate Costs To ensure your estate will go to
your children
Education To ensure college education of your children (Drop out rate = 88%)
Minimum cost of college education per child: Manila=P50T/sem, Cebu=P40T/sem, Other Cities=P30T/sem

Step 2. Choose between Term & Cash Value

Insurance
Figure out how you want to finance it!
Know if the insurance product sufficiently answers your financial
needs.
There are certain instances wherein some agents prefer to sell
products that they are most familiar with but not necessarily match
the need of their client.
People lost millions of pesos every year in buying insurance products
they dont understand!
Many people know they have insurance but,
They dont know how it works
They dont know if it is enough
They dont know how they were priced

Make sure you understand how insurance works because

the COST OF INSURANCE is always charged to you!

3 LAWS OF INSURANCE:
Law # 1: There is NO Free Insurance
Law # 2: Cost of Insurance (COI) always
goes up
COI is based on mortality rate table (Gods Table).

Law # 3: All insurance is term

insurance
THE DIFFERENCE IS HOW YOU PAY FOR IT!

Two main categories of life insurance:

1. Pure Insurance
2. Insurance with Savings
Unit Cost of Insurance = Pesos/1,000
41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100

TERM INSURANCE: ART (premium increase every year)

 5/10/15/20 - renewable level term, increase every renewal, base on new ag
Whole Life Insurance 20-Year Term Insurance
Age = 41 Annual Premium = P22,000 Annual Premium = P11,000 (Est. Difference = P11,000)
Coverage = 1M Paying Period = Up to Age 99 Paying Period = 20 Years
1M

41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100

Buy Term Invest the Difference

Year Age Annual Accumulation
Investment (End of Year)
1 40 11,000 12,320
2 41 11,000 26,118
3 42 11,000 41,573
4 43 11,000 58,881
5 44 11,000 78,267
6 45 11,000 99,979
7 46 11,000 124,297
8 47 11,000 151,532
9 48 11,000 182,036
10 49 11,000 216,200
11 50 11,000 254,464
12 51 11,000 297,320
13 52 11,000 345,319
14 53 11,000 399,077
15 54 11,000 459,286
16 55 11,000 526,720
17 56 11,000 602,247
18 57 11,000 686,836
19 58 11,000 781,577
20 59 11,000 887,686
21 60 11,000 1,006,528
Buy Term Invest the Difference
Year Age Annual Accumulation Year Age Annual Accumulation
Investment (End of Year) Investment (End of Year)
1 40 11,000 12,320 31 70 22,000 3,596,790
2 41 11,000 26,118 32 71 22,000 4,053,044
3 42 11,000 41,573 33 72 22,000 4,564,050
4 43 11,000 58,881 34 73 22,000 5,136,376
5 44 11,000 78,267 35 74 22,000 5,777,381
6 45 11,000 99,979 36 75 22,000 6,495,306
7 46 11,000 124,297 37 76 22,000 7,299,383
8 47 11,000 151,532 38 77 22,000 8,199,949
9 48 11,000 182,036 39 78 22,000 9,208,583
10 49 11,000 216,200 40 79 22,000 10,338,253
11 50 11,000 254,464 41 80 22,000 11,603,483
12 51 11,000 297,320 42 81 22,000 13,020,541
13 52 11,000 345,319 43 82 22,000 14,607,648
14 53 11,000 399,077 44 83 22,000 16,385,204
15 54 11,000 459,286 45 84 22,000 18,376,068
16 55 11,000 526,720 45 85 22,000 20,605,837
17 56 11,000 602,247 47 86 22,000 23,103,177
18 57 11,000 686,836 48 87 22,000 25,900,198
19 58 11,000 781,577 49 88 22,000 29,032,862
20 59 11,000 887,686 50 89 22,000 32,541,446
21 60 22,000 1,018,848 51 90 22,000 36,471,059
22 61 22,000 1,165,750 52 91 22,000 40,872,226
23 62 22,000 1,330,280 53 92 22,000 45,801,533
24 63 22,000 1,514,554 54 93 22,000 51,322,357
25 64 22,000 1,720,440 55 94 22,000 57,505,680
26 65 22,000 1,952,093 56 95 22,000 64,431,002
27 66 22,000 2,210,984 57 96 22,000 72,187,362
28 67 22,000 2,500,943 58 97 22,000 80,874,485
29 68 22,000 2,825,696 59 98 22,000 90,604,064
30 69 22,000 3,189,419 60 99 22,000 101,501,120

Term Whole Life Endowment

Premium Fix Fix Fix

Death Benefit Fix Fix Fix

In the hand of In the hand of
In your hand insurance company insurance company
Cash Value
Difference in premium cost Fix Rate Fixed Rate
Guaranteed Guaranteed
Cash Value N/A
Investment Youre in full control where No No
Option? to invest the difference
Stated in Policy; Stated in Policy;
Policy Term Until age 99
Usually 1/5/10/20 years Usually 5 years, 10 years
Up to age 60 or 65 20 years

Pure Insurance NONPAR without dividend Youre more interested in

PAR with dividend insurance as an investment
The difference is the overcharge!
TERM PROTECTION WHOLE LIFE
With unbundled Cash Value/Savings Is a bundle protection
CASH - in your hand (Difference
in premium cost)
FIRST YEAR FUND
You already have CV/Savings on the
first year, which you can withdraw in
case of emergency.
EARLY MATURITY ...
CV/Savings may reach your goal after
20 years, paying the same amount.
NO LOAN CHARGED
You can withdraw your savings
anytime without any penalty, even
on the first year without affecting the
protection coverage.
LEVEL COVERAGE RISK
Your CV/Savings is added to your
protection coverage
LOW COST
50% lower than endowment, with higher
coverage & benefits & earlier maturity.
DO YOU WANT BUNDLE OR
UNBUNDLE PROTECTION?
CASH - in the hand of
insurance company
CASH SURRENDER VALUE
You can not touch your CV/Savings
without affecting the protection side.
You will lose your coverage if you
touch the CV/Savings before maturity.
MATURES AT AGE 99
This is the only time client gets his
savings back, not the protection side
LOAN CHARGED
You pay interest charges for
borrowing your own personal
money (CV/Savings).
Decreasing COVERAGE
RISK
As your money (CV/Savings) is
increasing, risk of the company is
decreasing since your money
(CV/Savings) will be used to partly
pay the total face amount.
HIGH COST OF PREMIUM
Overpay in early years to catch up
the underpay in the coming years!
DO YOU LIKE TO BE PENALIZED
BY SAVING MONEY?
ENDOWMENT
Is a bundle protection
CASH - in the hand of
insurance company
CASH SURRENDER VALUE
Same Features as the Whole Life
EARLY MATURITY, Usually Age 65
Endowment is very expensive (vs.
whole life) due to early maturity
LOAN CHARGED
Same Features as the Whole Life
Decreasing COVERAGE RISK
Same Features as the Whole Life
VERY HIGH COST OF PREMIUM
since maturity is earlier then naturally
the cost will double (vs. whole life)
DO YOU LIKE TO BE PENALIZED
BY SAVING MONEY?
BUY
TERM IF
You want to get the highest
coverage at lowest cost
You just want pure insurance with You want guaranteed death
guaranteed death benefits -no
cash value
You want to be insured only up to
certain age, like 65, after which
you have accumulated enough
savings & assets & your kids are
financially independent adults
--you dont need to be insured
anymore (or you need lower insurance).
Youre a disciplined saver &
investor.
You dont want to pay high
commissions.
Youre required by your lender to
buy credit life insurance.
BUY BUY
WHOLE LIFE IF ENDOWMENT IF
You dont mind paying premiums Youre more interested in
your entire life insurance as an investment.
benefits & guaranteed cash
values
You want a lifetime protection. Youre not after lifetime
You want to have fixed or level protection.
premiums throughout your life.
You dont want to worry about not
being insurable when youre
older.
You dont have discipline to save Youre conservative when it
& invest. comes to risks & would want
Youre conservative when it returns to be guaranteed.
comes to investment risks.
You want to earn dividends from
insurance company (PAR policy)
You want to accumulate cash that you
can borrow or get back in case you
have to cancel your policy in later years.
Step 3. Know what features you need
Most insurance companies actively sell their limited pay whole life policies and
endowment products. And they have different brands for each product variation,
so it can be confusing for the untrained.
If you choose term insurance, you have simpler
choices:
ART, 5 years, 10 years, 20 years, up to age 60, up to age 65, etc.
Just make sure the policy is RENEWABLE & CONVERTIBLE.
RENEWABLE you can renew it upon maturity without requiring you to have a
medical exam.
CONVERTIBLE you can convert your term policy into a permanent plan.
You need insurance only when your kids are still young and you have no savings.
When your kids are financially independent adults and you have saved enough
money, you wouldnt need to be insured anymore. If this can be done in 20 years,
get 20-year term insurance. If 10 years, get 10-year term insurance.
If you decide on a permanent policy, there are features to
decide on:
Do you want a participating (earns dividends) or non-participating?
Do you want to pay for the entire period of the policy, or a limited pay period, or just one time?
Do you want guaranteed fixed benefits or variable benefits?
 Whole Universal Variable Variable
Term Life Life Life Universal Endowment
Life
Premium Fix Fix Flexible Fix Flexible Fix
Death
Benefit Fix Fix Adjustable Fix Adjustable Fix
In the hand of In the hand of Separate Separate In the hand of
Cash No insurance insurance Account Account insurance
Value company company company
Fix Rate Current Rate Variable Rate Variable Rate Fixed Rate
Guaranteed Guaranteed Minimum Not Guaranteed Not Guaranteed Guaranteed
Cash Value
Investment n/a no no yes yes no
Option?
Policy Stated in Stated in Policy;
Term Policy; usually Until age 99 Until age 95 Until age 99 Until age 99 usually 5 years
1/5/10/20 years 10 years
Up to age 60 or 65 20 years

NONPAR without Money is in your hand

dividend put your money in
PAR with dividend professional money
The difference is the management
overcharge! &diversify. If money
not enough, policy is
 lapsed.

BUY BUY BUY BUY BUY

TERM IF WHOLE LIFE IF UNIVERSAL IF VARIABLE IF ENDOWMENT IF
You want to get the You dont mind paying You dont want to You prefer to control Youre more interested
highest coverage at premiums your entire keep on paying where your premiums in insurance as an
lowest cost life premiums forever are invested. investment.
You just want pure You want guaranteed You want guaranteed You dont mind
insurance with death benefits & death benefits but more having a minimum
guaranteed death guaranteed cash values flexible cash values & death benefit
benefits -no cash value premiums.
You want to be insured You want a lifetime You want similar You dont mind Youre not after
only up to certain age, protection. benefits of whole life paying varying lifetime protection.
like 65, after which you You want to have fixed but dont want the premiums.
have accumulated or level premiums inflexibility.
enough savings & assets You dont mind not
throughout your life.
& your kids are financially You dont mind having
You dont want to worry paying varying guaranteed cash
independent adults
about not being premiums. surrender value
--You dont need to be insurable when youre
insured anymore (or older.
need lower insurance).
Youre a disciplined You dont have You dont have Youre more Youre conservative
saver & investor. discipline to save & discipline to save & aggressive when when it comes to
invest. invest. it comes to risks & would want
Youre conservative You want a higher investments. returns to be
when it comes to return on your guaranteed.
investment risks. investment portion.
You dont want to pay You want to earn
high commissions. dividends from insurance
company (PAR policy)
Youre required by your You want to accumulate
lender to buy credit life cash that you can borrow
insurance. or get back in case you
 have to cancel your
policy in later years.

HEALTHCARE 101
Short Term Healthcare - Traditional HMO Long Term Healthcare -Health Savings Account
1. Renewal not guaranteed if with high claims 1. Renewal is Guaranteed.
2. Yearly increase of premium until age 60 2. Fixed premiums - 5 years paying period
3. No term insurance coverage 3. With Four (4) Way Insurance Coverage
a. Term Life
b. Accidental Death & Dismemberment
c. Waiver due to death
d. Waiver due to disability
4. No accumulation of unused health fund 4. All unused health fund accumulates with interest
5. No return of premiums for non-utilization 5. Return of premium on the maturity date if no claim
during the 5-Year Paying Period.

6. Covers only up to age 60 6. Covers beyond age 60*, and unused health fund
continue to earn interest.
(Subject to the availability of Accumulated Health Fund).

7. Pre-existing illness is not covered during the 5-year

7. Pre-Existing illness is not covered during
paying period, but healthcare fund starts to
the first year. Lifetime/Permanent exclusions
accumulate on the 6th year to cover all illnesses*.
may be issued on the second year onwards.
(Subject to the availability of Accumulated Health Fund).

8. Not flexible, non-transferable benefit 8. Flexible, transferable, upgradeable and may

design. be re-dated benefit design.
9. Reinstatement is limited only within 30 9. Reinstatement within 2 years of lapsed policy.
days of lapsed policy.

More family today are financially struggling due to lack of financial information, wrong money
habits, bad debts & poor financial decisions, & they have no knowledge on how to get started
Two (2) issues we need to address immediately!
What if I live too
SOLUTION: Investment & Long-term Healthcare
long?
Who will take care of yourself?

What if I die too SOLUTION: Insurance

soon?
Who will take care of your family?

3 major financial needs (to complete your financial picture):

1. INVESTMENT to generate continuing income for you when you retire (or when you lost your job or
business).
2. INCOME PROTECTION (Insurance) to protect your family if you die too soon ---life insurance
protection can help you replace your income, help finance your childrens education, pay estate tax, pay debts, etc.
3. HEALTHCARE to provide you healthcare when you retire (or when you stop working).
Healthcare Crisis
- Medical cost doubles every 5-7 years.
- A lot of sick people die not because there is no medicine but because of no money.
- Majority of Filipinos dont save money for future healthcare needs.
- You can not bring with you the healthcare benefits provided by your company when you retire or resign.
- No traditional healthcare company covers ages 61 and up.
 - Most people rely on their children, or sell properties, or borrow money for their medical needs during retirement.

What if I could tell you about a product that provides complete solution to your 3 major financial needs?
Kaiser Premium Health Builder
Provides total solution to your Healthcare, Investment & Insurance Needs!

Kaiser -Premium Healthcare Builder.

Waiver-Death ABL R&B Basic Medical
Long-Term Health Benefit 100,000 No Withdrawal Term ADDB Paying Deduct &
or Permanent
Year No Utilization Insurance Disability Period only from ABL Dental
Pre-existing Medical Conditions 1 45,729 100,000 100,000 Paid 50,000 500
are not covered. 2 45,729 100,000 100,000 Paid 50,000 500
Non-PhilHealth members will have 3 45,729 100,000 100,000 Paid 50,000 500
to pay for the PhilHealths covered 4 45,729 100,000 100,000 Paid 50,000 500
expenses first before Kaiser. 5 45,729 100,000 100,000 Paid 50,000 500
TOTAL PAYMENT 228,645 - - - -
Your fund starts to accumulate on 6 10,000 11,000 100,000 100,000 - - - -
the 6th year. 7 10,000 23,100 100,000 100,000 - - - -
This is the Annual Health Benefit 8 10,000 36,410 100,000 100,000 - - - -
which is 10%of the LTCB for 9 10,000 51,051 100,000 100,000 - - - -
10years from 6th to 15th year. 10 10,000 67,156 100,000 100,000 - - - -
A 10% annual increment on the unused 11 10,000 84,872 100,000 100,000 - - - -
health benefits is used in this illustration 12 10,000 104,359 100,000 100,000 - - - -
Actual increment may vary depending 13 10,000 125,795 100,000 100,000 - - - -
on prevailing market rates but in 14 10,000 149,374 100,000 100,000 - - - -
no case less than 7% per annum. 15 10,000 175,312 100,000 100,000 - - - -
Projected Total Annual Health Benefit 100,000 175,312
Long Term Care Benefit 100,000 100,000
Long Term Care Bonus -if no utilization 228,645 228,645 -If no claim during the Five-Year Paying Period
Projected Health Fund after year 15 428,645 503,957
Projected Health Fund after year 22 1,000,000 Quarterly = 13,262
Projected Health Fund after year 29 2,000,000 Semi-Annual = 24,694
Projected Health Fund after year 36 4,000,000

1. Term Insurance & ADDB -before maturity or before age 65 4. Basic Medical (Paying Period only) Urinalysis, Stool Analysis, Chest X-ray, and
2. Grace Period: Insurance -1 month, Healthcare none Complete Blood Count ECG for 35 years old & up
3. Basic Dental Benefits (Paying Period only) 5. Policy Fee: 5-Year Paying Period =P500/year (for 5 years) & Spot Cash Policy Fee =P2,500

Kaiser -Premium Healthcare Builder Quick Premium Reference

Age 10-60 Age 10-60 Age 10-60 Age 10-60 Age 10-40 Age 41-50 Age 51-60
Long-Term Care Benefit 350,000 150,000 100,000 75,000 35,000 45,000 55,000
Annual Benefit Limit (ABL) & Room & Board Year ABL=120,000 ABL=60,000 ABL=50,000 ABL=50,000 ABL=50,000 ABL=50,000 ABL=50,000
(R&B) are covered only during 5 years Paying R&B =1,500 R&B =800 R&B =500 R&B =500 R&B=400 R&B=400 R&B=400
Period.
1 160,053 68,594 45,729 34,297 16,005 20,578 25,151
Pre-existing Medical Conditions are not covered. 2 160,053 68,594 45,729 34,297 16,005 20,578 25,151
3 160,053 68,594 45,729 34,297 16,005 20,578 25,151
Non-PhilHealth members will have to pay for the 4 160,053 68,594 45,729 34,297 16,005 20,578 25,151
PhilHealths covered expenses first before Kaiser. 5 160,053 68,594 45,729 34,297 16,005 20,578 25,151
TOTAL PAYMENT 800,264 342,970 228,645 171,485 80,026 102,891 125,756
Your fund starts to accumulate on the 6th year. 6 38,500 16,500 11,000 8,250 3,850 4,950 6,050
7 80,850 34,650 23,100 17,325 8,085 10,395 12,705
This is the Annual Health Benefit which is 10% 8 127,435 54,615 36,410 27,308 12,744 16,385 20,026
of the Long-Term Care Benefit for 10years 9 178,679 76,577 51,051 38,288 17,868 22,973 28,078
from 6th to 15th year. 10 235,046 100,734 67,156 50,367 23,505 30,220 36,936
11 297,051 127,308 84,872 63,654 29,705 38,192 46,679
A 10% annual increment on the unused health 12 365,256 156,538 104,359 78,269 36,526 46,961 57,397
benefits is used in this illustration. Actual increment 13 440,282 188,692 125,795 94,346 44,028 56,608 69,187
may vary depending on prevailing market rates 14 522,810 224,406 149,374 112,031 52,281 67,218 82,156
but in no case less than 7% per annum. 15 613,591 262,968 175,312 131,484 61,359 78,890 96,421
Projected Total Annual Health Benefit 613,591 262,968 175,312 131,484 61,359 78,890 96,421
Long Term Care Benefit 350,000 150,000 100,000 75,000 35,000 45,000 55,000
Long Term Care Bonus -if no claim1 800,264 342,970 228,645 171,485 80,026 102,891 125,756
Projected Health Fund after year 15 1,763,855 755,938 503,957 377,969 176,385 226,781 277,177
Projected Health Fund after year 22 3,527,710 1,511,876 1,007,914 755,938 352,770 453,562 554,354
Projected Health Fund after year 29 7,055,420 3,023,752 2,015,828 1,511,876 705,540 907,124 1,108,708
Projected Health Fund after year 36 14,110,840 6,047,504 4,031,656 3,023,752 1,411,080 1,814,248 2,217,416

Insurance (before maturity or until age 65) 350,000 150,000 100,000 75,000 35,000 45,000 55,000
ADDB (before maturity or until age 65) 350,000 150,000 100,000 75,000 35,000 45,000 55,000
Full Payment Guarantee -Death/Disability Fully paid Fully paid Fully paid Fully paid Fully paid Fully paid Fully paid
Quarterly Q =46,415 Q =19,892 Q =13,262 Q =9,946 Q =4,642 Q =5,968 Q =7,294
Semi-Annual SA=86,428 SA=37,041 SA=24,694 SA=18,520 SA=8,643 SA=11,112 SA=13,582
Figures need to be reconfirmed in the Kaiser Pre-Computed Table of Premium (All ages) as there might be error in typing.

Medium- Term Healthcare Short-Term Healthcare

A st th
B Premium Fund
Year 1 -10 Year -Per Illness Per Illness Difference Accumulation
Annual Annual
11th Year =P150T (EBL) Premium (A B) @
Premium 10% interest
Individual*

1 49,356 60,000 60,000 6,139 43,217 47,539

2 49,356 67,500 75,000 8,573 40,783 97,154
3 49,356 75,000 75,000 8,573 40,783 151,731
4 49,356 82,500 75,000 8,573 40,783 211,765
5 49,356 90,000 100,000 10,397 38,959 275,797
6 105,000 100,000 10,397 (10,397) 291,940
7 112,500 100,000 10,397 (10,397) 309,697
 8 120,000 100,000 10,397 (10,397) 329,230
9 127,500 100,000 10,397 (10,397) 350,717
10 135,000 100,000 10,397 (10,397) 374,352
150,000 374,352
Total
Payment 246,780
*Short-Term Healthcare Annual Premium in this illustration is based on Individual rate. Prices are lower for Group or Family (2 or more members).

CASH BENEFIT
Year Long-Term Healthcare Medium-Term Healthcare
1 45,729 49,356
2 45,729 49,356
3 45,729 49,356
4 45,729 49,356
5 45,729 49,356
228,645 246,780
6 11,000 0
7 23,100 0
8 36,410 0
9 51,051 0
10 67,156 0
11 84,872 150,000
12 104,359 165,000
13 125,795 181,500
14 149,374 199,650
 15 175,312 219,615
Total 175,312 219,615
Long Term Health Care Benefit 100,000 0
Long-Term Care Bonus (ROP) 228,645 0
End of Year 15 503,957 219,615
End of Year 22 1,007,914 439,230
End of Year 29 2,015,828 878,460
End of Year 36 4,031,656 1,756,920
Both assumed at the same interest rate (10% per year), & no utilization.