Investment Linked Insurance Products

This is the continuation of my previous blog BANKS: The Only Option For Savings?

Investment linked products are Life Insurance tied up with an investment. This means that your investments are secured with life insurance coverage. And this has become the preferred choice of Filipinos over traditional life insurance nowadays because of its flexibility and value for money.

Investment linked products of life insurance companies caters yuppies, matured and even old people. There are also options for your risk appetite – low risk, medium risk, and high risk. Should your risk appetite change from time to time, it wouldn’t be a problem as you can switch funds or change death benefits. Your financial advisor should take care of the amount of the account and through assessment of your financial situation he should be able to recommend a plan perfect for you.

What is its feature?

• Flexible payment mode. Option of paying annually, semi-annually, and quarterly.
• Flexible payment years. You decide. Whether to pay regularly, only a few years, skip payments (premium holidays), or pay once.
• Withdrawal. Partial or whole. Just like the bank, you can withdraw.
• Deposit. If you want to deposit, you can do so. In this case it is called a top up.
• Very low cost of Life Insurance Coverage. It just takes 3 years to pay the coverage. On the 1^st year 100% of the premium goes to coverage, the 2^nd and 3^rd year only 50% goes to coverage and the other half goes to the investment. The succeeding years of payment (if any) will go to investment.
• Premium Holiday. You may opt not to pay as long as the insurance coverage will be covered by the fund.
• Death Benefit Option. You can switch anytime from level death benefit to increasing death benefit depending or back, depending on how important coverage would be in a certain situation of your life.
• Option of Funds. Balanced Fund which consists of equities around 30%, money market instruments around 10% and bonds around 60%. Equity Fund has around 10% money market instruments and the rest are equities. Bond Fund has around 5% money market instruments and the rest are bonds.
• Switching Funds. You are entitled to switch funds if you wish to do so. It’s just as simple as moving from Equity Fund to Balanced Fund.

So this is an investment? Yes an investment for your future. If you are trying to save up for the future this would probably be your best option.

This type of investment is a steal because while you are saving for the future, you are also covered. That surely beats savings in banks. When something happens to you, your family will get an amount plus the investments. In banks when something happens to you, it would be very hard to claim the account.

Think about it, from day one of your premium, you 20, 30, 40 thousand is already worth 400 thousand. Saving with this investment vehicle is the smartest thing to do right now. No matter how old you are, saving is always better to do NOW than later. And never forget that there is no such thing as instant growth of money, so before you get one, understand that this is a long term savings plan. This is an alternative to savings banks and you would be sure that your savings are protected with coverage. - DE

2nd photo: Taken from iStockPhoto, thus the watermark.

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BANKS: The Only Option For Savings?

Money is an object we as adults work hard for. It is a medium wherein we use to exchange for something that adds value to our life. Every people have different definition of what money is and what it is for – positive or negative or both. This allows us to have things that answer your basic needs and wants. The more money you have, the more you become comfortable mentally simply because you are assured that for the coming days your basic needs would be provided for. It really makes the world go round.

All our lives, rich or poor, educated or not, we work just to earn money. Poor people, as early as they can think, they are trained to make money in whatever way possible – begging, collecting and selling garbage, and sometimes committing crimes. For us educated people, we were trained for 16 years more or less from nursery to college also to make money. We specialize on a certain field which will turn out to be our career that would provide us high paying salaries or business earnings. At the end of our formal educating years, what do we do next? Yes, make money. Everyone does, except of course kids who don’t want to work because they have filthy rich parents.

Once we start earning money, we take care of our basic personal needs. Then when our salaries will eventually be bigger than our basic needs we now can afford things beyond our basic needs – shopping, travel, etc. But there will be a time, either right away or later, when you would realize that this wouldn’t go on forever. Thus, we start saving money for our future.

Before, saving money is very simple. Keep it in a safe place in your house which would make it very vulnerable or keep it in a bank. This traditional way of saving is still being used right now. Banks certainly bring a lot of convenience to us. Deposit in your account, and the bank would be the one to protect it. Need money? Withdraw using ATM or through the bank teller. This makes us love banks even more. But will your money ever grow with them? I don’t think so.

Savings account earns 1% minus tax. Time deposit earns you 3-5% minus tax depending on the amount of deposit. Our inflation rate sometimes reaches to 5%. TRANSLATION: Your money isn’t earning well in the bank or sometimes the value even depreciates. Not everybody understands this, but you should! Your hard earned money depreciates in value over time in the bank. What if 10 years or so of saving you still haven’t found an investment vehicle? Then your money just depreciated before your eyes.

Are there any other savings tools aside from banks? My answer could create different reactions: LIFE INSURANCE. How? Through investment linked products of Life Insurance. Yup Life Insurance today isn’t just about claiming a lump sum amount when somebody dies. You can use it as a savings tool that earns 6% or more.

This savings tool is a bargain because it gives you life insurance coverage for free. The moment you open an account, not only did you simply open an account, you also are covered immediately. How’s great is that for a savings account? And just like the bank, you can withdraw and deposit.

That right there is an alternative when it comes to savings. But I am not saying that you empty your bank account and move it to insurance companies. Your bank account should be for immediate cash need purposes and Life Insurance for long term savings purposes because it out grows inflation rate and earns way bigger than banks.

So my question to you is, do you just let your hard earned money depreciate like that in banks? Or do you let it grow for savings purposes until you have come up with an idea where to invest it? What’s your pick? - DE

P.S.

Do you have a better savings tool? Comment here or contact me! Should you want to know more about investment linked products of life insurance, you watch out for my coming blog about that it. It would be a simple explanation of what it is. But if you want to know about it in full details, you can contact me through email first. Cheers!

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Why Food Carts Worked

Food cart businesses boomed a couple of years back. A lot of people say how could franchisors saw it coming while we did not? Well I always hear that when we see new businesses. But why did food cart business boom in our country? And why did it happen so fast?

These businesses would usually be found in public places where foot traffic is heavy. These are small food stalls at the side of the streets, train stations, bus terminals and many more people heavy places. Two unhappy people manning the cart with the food they offer which are usually less than 10 kinds of products. Though they offer only a few items in each stall, a number of food cart side by side can be found. From siomai, to fried noodles, to quail eggs, to sisig, and to the newest I have seen which is the scramble (Filipino desert sold in the streets).

So why did this kind of business clicked?

SPECIALIZED ITEM

I say specialized item because usually a food cart revolves around one type of product like siomai. There are food carts that only sell siomai. Other stalls have added items like fried noodles or rice. This makes it easy for franchisors to sell their item to numerous people at a time and at the same time get their brand easily remembered.

PRICE

Food cart products are budget friendly. Usually priced at 50pesos or below, the price triggers the impulsiveness of people. People always think that few pesos wouldn’t hurt their budget anyway. And for a cheap price that could fill one’s stomach, it’s a sure hit in a country like ours.

FRANCHISING

Franchises have a system that clearly have worked, and a brand that already is known by public. Everything is provided for the investor – cart, use of name, equipment, access to commissary, trained employees. Since there have been increasing number of entrepreneur-wanna-bes in the country, franchising would be an easy and cheaper way of doing business. Investors just to give the money and everything would be provided to you including training how to run your own business.

CHINESE INFLUENCE

Since there are a lot of Chinese in the country, Filipinos learned to love Chinese food as well. Not only is it delicious, it’s also easy to make. Again budget friendly items especially food will surely attract Filipinos. Some of these foods that Filipinos got to love are Siopao and Siomai.

COMMISARRY

Having a commissary just saves food cart owners time, money and effort because there wouldn’t be a shortage of goods unless they screw up their own production. Having a steady stream of goods coming in with consistent quality, this gives franchisors more time to give effort on marketing and selling. This would create a huge gap to those planning to imitate a franchise business.

MARKETING STRATEGY

No matter how many franchisors are scams or just selling false promises, they get entrepreneur-wanna-bes to invest in their franchise business. Kudos to their marketing strategies! Call it well marketed or scam practices, it still worked. They make their presence felt in any media possible to get their target clients – internet, magazines, expos, and even sometimes giving fliers in public places.

POVERTY

It’s sad that the Philippines, a third world country, is rich in resources but the government just can’t seem to find a way to utilize it well in favor to our country. On the flip side, due to budget constraints, food carts somehow solve problems of poor citizens. This is a quick fix for a starving stomach.

After all those factors mentioned above, location and marketing would still be the biggest factor for any business success. For food carts, location played a very big part because these are low-cost products that would need people who suffer budget constraints. Marketing also is a big factor because this would get more investors to buy the franchise. More franchisee, the more stores in more locations there is.- DE

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SURESEATS: Cinema Tickets Online

Don’t you hate it when you go to movie theatres on premier night, only to see a barrage of people in line? Instead of everything happening as planned, it becomes a nightmare. This doesn’t not only happen on premier nights but drags all the way to its first week.

What if you can’t skip class of work to buy ticket on a weekday morning? Then you really have to rush all the way to the theatre after work. But then you just found out everybody was thinking what you’re thinking; everybody did what you did, rushed to the theatre ticket counter and wait in a very long time. This is very frustrating especially when you see Twitter and Facebook updates of friends saying the movie was the best movie ever. Doesn’t this just makes you wanna punch someone?

This always gets in my nerve, I hate waiting in a very long line without a guarantee I’d be able to buy a ticket because some cinema like Ayala Cinemas sell guaranteed seating. No more seats, no more tickets to be sold. You don’t get a ticket for the day? Better luck tomorrow. That’s how it goes.

But I wouldn’t let this thing happen over and over. I must find a solution to this. And I did! Behold SURESEATS.COM. This site allows you to check movie schedules from all Ayala Cinemas. But the best part is you can buy your ticket online for the same price minus the long queue line!

To get started, register to sureseats.com

One registered you have to purchase credits from Ayala cinema counters. I suggest you buy in thousands because the credits don’t expire until 6months. Don’t forget to get your credit code and ask for an M-Pass card.

Log on to you SURESEATS account and just load your account with the code given to you.

Then, purchase your tickets online with schedule and seat you desire!

Finally, print the ticket! It’s as good as the tickets bought in cinema counters. Present it directly to the cinema usher.

Kudos to Ayala Cinema! You’ve solved our problem! Now, guaranteed seats are just a click away!

Don’t let long lines ruin your well planned movie date! Register to SURESEATS now. - DE

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World Food Expo 2010

WHAT: World Food Expo 2010 “The Country’s Biggest & Most Effective Food Show”

WHEN: August 4-7, 2010

WHERE: SMX Convention Center & World Trade Center

Check out what ACTIVITIES to attend to.

For more information visit WOFEX 2010 Website.

Top culinary experts and scrumptious food awaits you. This would be a great show! See you there!- DE

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What You Need To Know Before Buying A Franchise

Any business franchise opportunities may seem to exciting when you first see it especially in franchise expos where franchisors need to make their business look very nice. Upon seeing how their business looks like, our emotions get high and we get excited to acquire one. However, we shouldn’t be rushing when it comes to business. Take time to know everything about the business you’re about to get in to. Rather than regretting in the end, study everything about the business you want to purchase.

Questions to ask to the franchisor directly are:

1. How long have you been in this business?
2. How long have you made your business available for franchising?
3. How many franchise stores do you have? How many of them are owned by the original franchiser?
4. Can I buy an existing corporate-owned store instead of building one from scratch?
5. Can your business be duplicated including quality and service?
6. How much is the initial franchise fee and what does it include?
7. Is the franchise brand name registered with the Intellectually Property Office of the Dept. of Trade and Industry?
8. Does the franchise have a logo a brand name, and logo-text?
9. What are the control systems that the franchise has in place? (such as a central commissary, secret ingredients and operation manual, accounting systems, etc)
10. What kind of pre-opening support do I get?
11. When the business is operating, what kind of support do I get on a continuing basis?
12. Can I spend a week observing an actual franchise operating?
13. Do I have exclusive territorial rights?
14. How much do I have to spend for my store’s construction and initial inventory?
15. Where do I buy succeeding inventory supplies?
16. Would succeeding inventory supplies be delivered? How much would it cost?
17. Do I have to buy my inventory exclusively from you (the franchiser) or can I procure them elsewhere?
18. Can I return merchandize (inventory) for credit?
19. How much do I have to pay you in royalties when my franchise is already operational?
20. Is the royalty fee based on my store’s gross sales or based on my purchases from the franchiser?
21. How much are you going to charge for joint advertising fees? What kind of advertising and marketing programs do you have?
22. In your corporate stores, how much are you making per store? Can I see your financial statements for that store’s operations?
23. Give me a list of your other franchise holders whom I can talk with about the business.
24. Has any of your franchise holders defaulted or closed shop? Who are they (names and phone numbers) and what were their reasons for their defaulting or closing?
25. Can I have a copy of your franchise agreement for my review?
26. By how much can I deviate from the franchise agreement concerning products I can sell in my store?
27. How long is the duration of franchise agreement? Is it renewable and what are the renewal rates?
28. Are there penalties if I withdraw earlier from the franchise?
29. If I decide to buy another franchise from you, do I get a discount?
30. If I recommend another franchise holder, do I get a referral fee?
31. Can I change the location of my franchise store (at my cost) if the present one is not viable? Are there any additional fees to pay for the change in location?

Once this checklist is accomplished, weigh the pros and cons. Think of what you can do to compliment the cons and how you could flourish with the pros. Sometimes a business is too good but you may not be ready for it. If you can’t see yourself doing the business with the information you gathered, it would be best to look for something else.

Franchises are presented the best way you can imagine to entice entrepreneurs to buy their business as soon as possible. It would be wise to let the emotions subside and study the business before you decide. Good luck with your venture!- DE

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The Digital Ripple

Print ads, banners, billboards, posters and traditional advertising no more! Digital Marketing culture in the Philippines is set to take off in the near future and the group that would make this happen is the Internet and Mobile Marketing Association of the Philippines (IMMAP). IMMAP is an association built to utilize the internet and mobile advertising opportunities in the country. Every individual that is into digital marketing shouldn’t miss the 4^th Internet and Mobile Marketing Summit 2010 named THE DIGITAL RIPPLE.

This will be a 2 day summit on August 19-20, 2010 at the SMX Convention Center, Mall of Asia, Manila, Philippines. Digital Entrepreneurs, executives, and highly successful bloggers would speak in this summit to share more about the booming industry – from how internet and mobile marketing works, to the trends, to the detailed techniques that would make digital marketing work for you and for clients.

The best of the best digital marketers in Southeast Asia would be here including my idol bloggerAbe Olandres (YugaTech.com) would be there in the panel discussion. This would be a perfect opportunity for engage with digital marketing experts.

This just excites me because I can’t decide whether to take Creative Media Management in Entrepreneurs School of Asia or take the Digital Marketing Diploma Program of IMMAP partnered with Ateneo. Having known that my former professor was the co-founder of IMMAP and another former professor is a faculty member of Digital Marketing Diploma Program, Ramon Duremdes and Joel Yuvienco, this just solidifies my choice for Ateneo Business School. I won’t miss this opportunity to learn and to start riding the wave of a culture on the rise.- DE

I’m going! Are you?

The Digital Ripple Website

Register Here

Speakers

Program Schedule

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