"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.
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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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Preparing for College/Retirement
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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
Loan Calculator
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.
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The Complete Pinoy Guide to
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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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*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
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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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te (declining balance)
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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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Pre-Need Effective Yield (on uneven annual premiums and payouts)
Note: Input first premium
payment in period "0".
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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
Loan Calculator
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ete Pinoy Guide to
onal Finance
Yield
6.16% per year
Loan Calculator
