What if growth is lower?
This mathematical comparison keeps the same illustration’s premiums, five contributions and scheduled education/retirement withdrawals, but changes only the hypothetical growth rate. It does not quote an actual credited rate or promise renewal/benefits.
| Hypothetical annual growth | First cash-flow issue | Projected PDF at illustrated age 64 |
|---|---|---|
| 0% | Year 19, illustrated age 40; additional ₱120,649 needed before that year’s growth | Not reached under unchanged cash flows |
| 4% | Year 20, illustrated age 41; additional ₱125,676 needed before that year’s growth | Not reached under unchanged cash flows |
| 8% | Year 22, illustrated age 43; additional ₱3,243 needed before that year’s growth | Not reached under unchanged cash flows |
| 12% | Funds remain sufficient for these modeled cash flows | ₱6,988,225 |
The model applies contributions, premiums and withdrawals at the start of each illustrated policy year, then grows and rounds the remaining PDF to the nearest peso at year-end. Year 1’s ₱7,431 includes the illustrated fee. Premiums remain exactly those in the artwork; no additional taxes or charges are assumed. Age labels follow the source’s age column.
A shortfall means the unchanged schedule needs new money or changed withdrawals before continuing; it does not show a negative fund continuing to grow. No automatic continuation of coverage is assumed if a premium cannot be funded. The 12% row reproduces the artwork’s age-64 PDF and age-75 PDF of ₱11,786,346. Actual timing, credited rates, fees, renewal and rider conditions can change the outcome. A fixed withdrawal amount is not a guaranteed lifetime pension.
Use the separate retirement worksheet to model your own spending, pension and contributions →
At 22, you have more than one dream.
You have a newborn. You want to give your child a good education. Someday, you also want to travel, start a small business, and retire with money of your own.
But there's another question: "Paano ang pamilya ko kung mawala ako nang maaga?"
You tell your financial advisor about all these goals. One possible approach is MOST 18: term life insurance for protection, with a Premium Deposit Fund, or PDF, for building money for future needs.
Your goals do not have to stay the same forever. College may come first. Retirement may come later. Along the way, a new dream may take its place.
CHAPTER 01 • YEARS 1–18 • AGES 22–39
Protect your family.
Prepare for their future.
Suppose you earn ₱20,000 a month at age 22. You set aside ₱46,273 a year for five years—about ₱3,856 a month, or 19.3% of your monthly income. That fits within a 20% allocation for preparing for the future, provided your household budget can support it.
You are making a total personal contribution of ₱231,365. Part pays for insurance. The balance goes into the PDF.
| Period | Contribution | Insurance premium / fee | Added to PDF |
|---|---|---|---|
| Year 1 | ₱46,273 | ₱7,431* | ₱38,842 |
| Each of Years 2–5 | ₱46,273 | ₱6,931 | ₱39,342 |
*Includes the one-time ₱500 policy fee. The monthly figure is a budgeting equivalent of the annual contribution, not a quoted monthly payment option.
Protection starts while the dreams are still taking shape.
For the illustrated ₱1 million basic life coverage, the protection package includes the following, subject to the issued policy and covered events:
Benefits have their own definitions, exclusions, eligibility and age limits. Do not assume every rider continues unchanged through age 75. An earlier accelerated death benefit also changes the eventual death payout.
Two jobs. One strategy.
Think of this as BTID: Buy Term and Invest the Difference. MOST 18 provides the term protection—the "BT." The PDF provides a place for the money allocated to future goals—the "ID." Other BTID strategies use separate mutual funds, UITFs or other investments.
In this arrangement, there is an initial required PDF deposit of ₱6,000, already covered by the first year's illustrated deposit. Subsequent PDF contributions are optional. If your priorities change, you can choose to pay the insurance premium and invest elsewhere, subject to the policy's terms.
The PDF earns interest at a variable rate. A positive interest rate is different from a guaranteed 12% return. For this story, we use the supplied 12% illustration to see how the strategy could unfold.
After Year 5, the projected PDF is ₱279,044. You stop adding new money. From Year 6 onward, the PDF pays the annual insurance premiums in this illustration. The premiums continue; their source changes.
If you die while the coverage is in force at that point, the illustrated basic life benefit plus PDF would be ₱1,279,044, before any applicable claim adjustments.
Then your newborn reaches college age.
In Year 18, you withdraw ₱100,000 for your child's first year of college. After that withdrawal, the premium payment and the year's assumed growth, the projected PDF still holds:
Your child is just beginning college. Your preparation has another chapter ahead.
View the complete illustration · Years 1–18
CHAPTER 02 • YEARS 19–36 • AGES 40–57
The child graduates.
The money keeps working.
At age 40, you begin a second 18-year MOST 18 term, using the ₱888,023 from the first PDF as the starting fund. The illustrated annual premium is now ₱11,756. The fund pays it. You add no new out-of-pocket money.
College expenses continue. The illustration allows roughly 15% more each year:
| College year | Journey year | Withdrawal |
|---|---|---|
| First | 18 | ₱100,000 |
| Second | 19 | ₱115,000 |
| Third | 20 | ₱131,999 |
| Fourth | 21 | ₱152,000 |
| Total education withdrawals | ₱498,999 | |
Amounts reproduce the supplied illustration. These are planned withdrawals, not a guarantee that future tuition and living costs will be fully covered.
That's about ₱499,000 for four years of college—more than twice your original ₱231,365 contribution. After the final college withdrawal, the projected PDF is still ₱705,793.
Tapos na ang college. May natitira pang pondo.
No further withdrawals are shown during this second term. The PDF keeps paying the insurance premiums, while the remaining fund earns the assumed interest.
The education goal has been served. Now the focus can shift toward your own future.
View the complete illustration · Years 19–36
CHAPTER 03 • YEARS 37–54 • AGES 58–75
Now it's your turn.
At age 58, the strategy continues into a third 18-year MOST 18 term. The previous PDF balance funds the new term, and the illustrated annual premium rises to ₱41,325. Again, you add no fresh money.
Along the way, you may want to "kurot" for dream travel or a small business. A withdrawal would reduce the fund and its future growth. This particular illustration leaves those optional dreams unfunded so we can follow the retirement goal.
At age 64, just before the illustrated retirement withdrawals begin, the projected PDF reaches ₱6,988,225.
What could illustrative yearly retirement withdrawals look like?
Starting at age 65, you withdraw ₱500,000 a year. The illustration shows 11 withdrawals, through age 75:
Under the assumed 12% annual growth, the fund earns enough to cover both those withdrawals and the illustrated premiums, while continuing to grow.
This is a retirement withdrawal strategy, not a guaranteed lifetime pension. A lower actual interest rate or higher withdrawals could reduce the fund. And ₱500,000 decades from now will have different purchasing power from ₱500,000 today.
After the 11 retirement withdrawals, the projected PDF at age 75 is still:
If death occurs while the ₱1 million basic coverage remains in force, the table illustrates a combined basic death benefit and PDF of ₱12,786,346, assuming no earlier claim has reduced that benefit. The term's expiry date matters: coverage does not continue merely because a PDF balance remains.
View the complete illustration · Years 37–54
One beginning.
Different needs along the way.
The remaining fund is separate from amounts already withdrawn. This hypothetical scenario is not a forecast of actual returns.
But the most meaningful part of this story is the preparation behind the numbers.
You started while your family was young. You made room in your budget. You protected against an early loss, prepared for college, and gave your retirement fund time to grow.
Hindi kailangang sabay-sabay matupad ang lahat ng pangarap. Pero puwedeng simulan ang paghahanda ngayon.
Your circumstances will change. Your goals will change. Review your plan with your advisor so your contributions, protection and withdrawals continue to fit your life.
What would your own journey look like?
Your age, budget, family needs and goals may be different. Let's explore a plan built around those details, including more conservative growth assumptions.
Message me. #AskCoachBobet
How to read the illustrations
Year 1 is labeled age 22; Year 18 is labeled age 39, leading into age 40. The next terms start at ages 40 and 58. Three 18-year periods total 54 policy years, with the final row labeled age 75. College withdrawals occur in journey Years 18–21.
The scenario assumes continuation into successive terms, the illustrated premiums, sufficient PDF balances to pay premiums, and no benefit claim affecting the cash-flow path. Renewal, transfers, fund limits, fees, withdrawals and rider eligibility remain governed by the issued contract and insurer's rules. Check these before implementing the strategy.