My 4 in 1 Investment: Kaiser

We all want to be financially secured but the question is, how do we start? When it comes to financial planning, there are two important questions that you have to ask yourself:

Q: What if I die too early? What will happen to my family?
When the breadwinner passes away, the family not only loses a loved one, it also loses a source of income to pay for food, shelter, and basic necessities.

Q: What if I live too long? Who will take care of me?
Typically, regular Filipino employees would have a healthcare plan provided by their employer. This is a basic benefit that’s certainly valuable and helpful to all regular employees and their dependents since this secures their short-term healthcare needs but what happens when a person stops working? What happens when you reach the age of retirement? Will you be able to bring your healthcare benefits with you? Sure, you have a short-term healthcare right now, but are you already prepared for the time that you might actually need it the most? Who will provide for your food, shelter, health care and other basic needs?

WHY CHOOSE KAISER?
Kaiser gives you two of the basic components one should be looking for in an investment: Protection + Growth. 

Protection: Kaiser covers not just your short-term healthcare but more importantly, it secures your long-term protection, for your healthcare needs at your old age, as well as your insurance or your family's protection in case of an unfortunate event.

Growth: Since Kaiser is invested on a Mutual Fund that earns an average rate of 7% - 10% compounded annually, if you don't get sick and live long enough without getting sick, it can be good as cash. Meaning, you can withdraw your money and use for any of your other needs and responsibilities at your old age. Now, should you decide to leave your money even after maturity, it will just continue to grow at an average rate of 7% - 10% per annum.

In essence: ​Kaiser is a HEALTHCARE, INSURANCE, INVESTMENT + EMERGENCY FUND. It's a 4 in 1 investment vehicle.

We'll get to the specifics as you read on.

HOW DOES KAISER ULTIMATE HEALTH BUILDER PLAN WORK?

​​THE 3 PHASES OF KAISER ULTIMATE HEALTH BUILDER PLAN:

Phase 1: Accumulation Period or The Paying Phase (first 7 years)

For the first 7 years you will be paying for the plan. During this time, it works like a typical HMO wherein you have an annual benefit usable for hospitalization 
expenses. There are also a couple of benefits, like:

• FREE Annual Physical Examination after one year of payment.
• FREE Dental Checkup, annual dental prophylaxis, including unlimited simple tooth extractions.
• Term Life Insurance (up to age 70) with accidental death and dismemberment riders.
• In-patient benefits in accredited hospitals except for pre-existing conditions and dreaded diseases, up to plan annual benefit limit.
• Waiver of Installment/Premium due to death/total and permanent disability.

Phase 2: Extended Period or The Growth Phase (next 13 years)

During this phase, you have completed all the payments and all you have to do is wait and let the plan reach its 20th year (maturity). At this point your plan will have a starting cash value that you can also use for your medical expenses. The money is invested in government and corporate bonds, which are expected to yield 7-10% compounded per year. 

Comparison to other providers: During this phase, the Kaiser plan is still there for your short-term healthcare needs. The money is still growing at this stage and it is at this phase when the Kaiser plan starts to step-up and be more 
competitive with the other healthcare providers. 

• Term Life Insurance (up to age 70) with accidental death and dismemberment riders.
• In-Patient and Out-Patient Hospitalization Benefits subject to remaining member accumulated fund.
• Accumulation of Unused Health Benefits/Bonus at 7-10% 

Phase 3 – The Maturity Year (20th year and beyond): 
Comparison to Other Providers: At this phase, Kaiser stands out because most healthcare providers are already too expensive by the time you reach your 40s or even 60s. On the other hand, your money with Kaiser has already accumulated and depending on the plan you chose, your Total Health Benefits would be upwards of P500,000 all the way to several millions. If left unused the cash value upon maturity is projected to earn 7-10% per year.​
​

• Long term care bonus: Return of up to 85% of premiums paid if no claim made during the accumulation period.
• Long-term care benefit.
• Accumulated unused health benefits. 

Below are sample pre-computed amounts:
PLAN K50 -  P 2,941 monthly / P 8,529 quarterly / P 15,882 semi-annually / P 29,411 annually
TERM INSURANCE BENEFIT: P225,500
TOTAL CASH VALUE ON THE 20th YEAR: P583,084

PLAN K75 - P4,412 monthly / P12,794 quarterly / P23,823 semi-annually / P44,116 annually
TERM INSURANCE BENEFIT: P337,500
TOTAL CASH VALUE ON THE 20th YEAR: P874,626

PLAN K100 - P5,582 monthly / P17,058 quarterly / P31,764 semi-annually / P58,821 annually
TERM INSURANCE BENEFIT: P450,000
​TOTAL CASH VALUE ON THE 20th YEAR: P1,166,168.

PLAN K125 - P7,353 monthly / P21,323 quarterly / P39,704 semi-annually / P73,527 annually
TERM INSURANCE BENEFIT: P562,500
TOTAL CASH VALUE ON THE 20th YEAR: P1,457,710.

FREQUENTLY ASKED QUESTIONS:

Q. How can we be sure Kaiser will still be there in the long term? Can we trust Kaiser to fulfill its commitments? 
A: 1. The Kaiser Ultimate Health Builder is a product of two actuarial studies made by an American and a Filipino actuarial, respectively. 2. The company and the products offered have passed the regulatory requirements of the gov't thru the Securities and Exchange Commission and the Dept. of Health. 3. At least 51% of payments made by the plan holders automatically goes to a trust fund, as required by the government. KAISER cannot touch the trust fund. It is reserved for the future claims by the plan holders. 4. Kaiser trust fund is managed by two reputable international banks namely: 1.) ING BANK (based in the Netherlands) and 2.) DEUTSCHE BANK (based in Europe)
    
Q. I just bought a K45 plan and would want to have a bigger coverage. Can I upgrade or buy another plan?
A: Yes, a plan holder or member may upgrade his plan within 30 days from the member's effectivity date. The member may buy another plan only upon full payment of his policy which is on the 6th year.

Q: I just bought a K100 plan. Can I now avail of the Annual Physical and Dental Examination?
A: The member can avail of these two outpatient benefits after paying fully paying the first year's premium. E.g. If his mode of payment is annual, then he can avail immediately after receiving his member's kit containing his ID, benefit and dental card, provider directory, guide book and your schedule of benefits with the contract provisions.

Q: I have a K50 plan which I'd like to transfer to my daughter because I'm migrating to the U.SA. How do I go about transferring it?
A: The member shall be required to sign an amendment form and the daughter signs a new application for membership form and submit it to his IMG representative/offices or to Kaiser office located at King's Court I Building along 2129 Chino Roces Avenue in Makati City.

Q: If a member dies, is his K100 plan transferable to any of his beneficiaries? How much will his beneficiary get?
A: If the plan has approved term insurance coverage, the plan is transferable to the primary beneficiary. Kaiser shall pay the principal amount of the term insurance equivalent to the member's long-term care benefit Php 100,000. If the cause of death is an accident, another Php 100,000 shall be paid.

Q: What if I invested on a K50 plan and during the paying period (first 7 years) I used my Kaiser plan for in-patient hospitalization?
A: Instead of getting the full amount of P583,084 you will only get P408,084. Still more than 100% of what you've invested.
 
Q: What if I just leave my funds even after the 20th year?
A: It just continues to grow at a rate of 10% compounded annually. This is exactly the reason why the earlier that you start, the more funds you can accumulate. 
 
Q: Am I still covered with insurance beyond the 20 years?
A: YES, as long as your account is still funded. Your total fund beyond the 20th year serves as your insurance. E.g. If you invested on a K-50 plan and didn't use/withdraw any amount from your fund, your total insurance coverage on the 20th year is P583,084

Q: What if I don't get sick? Can I use my money for something else?
A: YES, because it’s an investment. Meaning you can use it for anyone, anything, and anywhere.