10/06/2021
Kaiser Ultimate Health Builder FAQ
Why do we call Ultimate Kaiser a level 1 investment, and why do we think this should be the first investment?
The rationale behind Kaiser Ultimate Health Builder is simple.
Buy it when you are young and healthy and able to pay, because it is something you know you will use when you are old, or sickly or no longer able to pay.
Suppose you get an Ultimate Kaiser Health Builder Plan K-45.
This means you contracted to pay P2,647 premium every month for seven years. In a nutshell, this is what you get:
-- term insurance for 20 years for P202,500, with ADD
-- waiver of premium in case of death during the paying period
-- health protection for at least 20 years
-- cash maturity value of approx P525k after 20 years.
What does this mean?
What if you die too soon?
If you pass away, after making a few installments:
-- Your policy gets fully paid ( waiver of premium )
-- Your beneficiary could claim PHP 202k for natural death, or PHP 405k for accidental death
-- Your beneficiary inherits the policy and could enjoy the health benefits, or claim up to PHP525k (a little less, because beneficiary already claimed insurance benefits) on policy maturity 20 years later
-- Total benefits up to PHP 930k.
If you become totally disabled after a few installments:
-- Your policy gets fully paid ( waiver of premium )
-- You get up to PHP 202,500 as insurance proceeds.
-- You could enjoy the health benefits, or claim up to PHP525k on policy maturity 20 years later
-- Total benefits up to PHP 727k.
What if you always get sick?
-- You can avail of up to P50k per year in hospitalization expenses for the first seven years ( excluding pre-existing illnesses and dreaded disease, and net of PhilHealth )
-- You can use whatever is the balance in your health savings account, for the 8th to 20th year. ( for any purpose, including pre-existing, dreaded disease, medical consultation, medical procedures and medication)
If your plan is a K45, paying monthly premiums, a single P50k hospitalization is more than 18 months of premiums.
What if you live healthy and live too long?
-- You could enjoy the health benefits, or claim up to PHP525k on policy maturity 20 years later (for smallest K-45 plan),
-- You could keep your money with Kaiser, and it will earn 7-10% per annum. If you started at 20 years old, your plan could be worth up to P3.5MM by age 60. By that time, assuming 10% growth, you could even use the 10% ( P3.5M x 10% = P350,000 per year, or close to P30,000 per month) to augment your monthly income.
Why is this considered complete protection?
You invest your money in financial vehicles for three reasons:
-- protect your health to ensure you have provisions for unexpected medical expenses, so that you continue to be productive and in income-earning condition
-- protect your family with life insurance if the Lord takes you home early
-- protect your future with a health fund that grows ( and never shrinks in value except through withdrawal or use of benefits) in value.
-- In the first 7 years it is a hospital plan with free annual physical exam and free dental benefits.
-- In the next 13 years, it is a healthcare fund for hospitalization and outpatient care.
-- For 20 years it is life insurance protection.
-- Starting on the 8th year its fund value grows at 7-10% every year.
-- Upon maturity after 20 years, it becomes fully withdrawable, or used as emergency fund, or as a standby medical fund, or a pension fund.
Unlike plain insurance, which is normally a provision for you to leave money to your beneficiaries when you pass away, Kaiser Ultimate is something you can use for yourself, when you get sick, or in your old age.
Unlike plain insurance, Kaiser Ultimate is transferable, has zero charges and guaranteed not to decrease in value (except through withdrawal/use) after the 7-year accumulation period.
Walang talo!!! ☺☺☺
(C)R. Prudente
