Income is only part of the contribution
Dependents can include children, a spouse, parents or someone whose care you provide. Unpaid care has a replacement cost too. List the years of support, essential expenses, outstanding debts and unfinished goals. Decide which needs must be funded and which resources are genuinely available to those people.
A protection-gap estimate
Fictional household example. A simplified no-growth, no-inflation estimate, not an insurance quotation. Needs and resources must not be counted twice.
| Item | Amount |
|---|---|
| Family support: ₱25,000 × 12 × 8 years | ₱2,400,000 |
| Debts to settle | ₱500,000 |
| Education goal not included above | ₱600,000 |
| Total estimated responsibilities | ₱3,500,000 |
| Dedicated accessible resources | −₱300,000 |
| Existing eligible life coverage | −₱1,000,000 |
| Estimated unfunded responsibility | ₱2,200,000 |
The ₱2.2 million gap is a discussion starting point. Inflation, benefit restrictions, changing expenses, survivor income and how long support is required may change it. Do not automatically include the home as available cash if the family needs to live in it. Do not count a goal fund twice as both emergency savings and dedicated education money.
The X-Curve: a direction to examine
In an illustrative X-Curve, responsibilities may be high while accumulated resources are still small. As resources grow and some responsibilities end, the protection gap may shrink. But real households do not all follow that shape: late dependents, illness, debt and interrupted work can increase needs at any age.
Review protection at major changes. A product is one implementation option after the responsibility and gap are understood. Check term, exclusions, riders, beneficiaries and renewal conditions against the actual proposal.
Protection responsibility worksheet
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Next steps
Educational information. Examples use explicitly stated assumptions; actual costs, returns, benefits and personal circumstances vary.