Income Continuation


Is your family’s future secure if you suddenly run out of time?

As breadwinners, our families depend on us and our income.
If only it was possible, then we would generate all the financial support our family will ever need in their lifetime.
But the challenge for most of us breadwinners is this … what if we run out of time? What if something happens to us? You see, death is something that we cannot predict nor control. To a breadwinner, it’s like we’re racing against time.




Secure your family’s future with life insurance. The only wealth accumulation tool in which time is not a factor

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So how can we address the challenge of time to a breadwinner? The bright choice is to secure your family’s income through life insurance. It is such a unique product since it is the only wealth accumulation tool in which time is not a factor. Let me explain how it works.

Illustration 1 (Man Without Life Insurance):

Let’s look at a typical scenario where a breadwinner works hard in order to accumulate wealth for the family. This is also known as man-at-work. However, in the event of untimely death, the family will rely on what the breadwinner has accumulated to date. If it’s not enough, then the family will have no choice but to reduce their cost of living. The consequences may be minimal to drastic. Children will need to transfer to a more affordable school, some children won’t be able to finish their studies anymore, the family will need to move in with some relatives, properties will need to be sold, etc.

Illustration 2 (Man With Life Insurance):

Now let’s take the 2nd scenario where the breadwinner made the bright choice of purchasing a life insurance policy. This breadwinner works hard to accumulate wealth. However, in the event of untimely death, a predetermined amount of money is created, also known as the face amount or insurance coverage, and the money is delivered to the surviving family. The insurance proceeds therefore “steps in, when the man steps out”. This is why it’s called Money-at-Work. Life insurance “fills the gap” between the breadwinner’s existing wealth vs the required funds needed to support his family.


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Perhaps you’re wondering how much insurance you really need. Or if you already have an existing coverage, would you like to know if it is actually enough?

Let me run a simple calculator for you to determine the right amount to provide continuing income for your family. I have a sample here for a household spending 50k per month. This breadwinner requires 15Mil in protection fund. Why 15Mil? Because if the surviving dependents received the 15Mil proceeds, and invested it in a 4% bearing instrument, then it will generate 600,000 in interest income per year – which then continues the annual household expenses of the family. That’s why we call life insurance as an “income continuation” tool.


Aside from the family income needs, this breadwinner also provided for one- time expenses. By setting aside 3 Mil for liabilities, the family will not be burdened by outstanding loans not covered by a collateral/ MRI, contingencies, and final expenses, such as medical bills, funeral expenses, and estate tax.

However, we must deduct any existing cash assets & insurance coverage of the breadwinner. In this example, there is still a shortfall of 2Mil. This amount is now the “insurance gap” that we will try to address using any of our Sun Life solutions.

A bit complicated? We can determine your life insurance needs for you: CONTACT US OR REQUEST FOR AN APPOINTMENT

Let me share with you some sample solutions that I’ve designed for my breadwinner-clients.

Solution #1: Pure Life Insurance

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We have our “plain vanilla” income continuation plan that provides for a fixed death benefit of 2Mil in exchange for an annual premium of 85,370 that’s payable for 10 years. I tell my clients that by taking care of a small obligation of 85k, then Sun Life will assume the bigger obligation of 2Mil. Which would you rather assume – the smaller or the bigger obligation?

Solution #2: Life Insurance + Investment Fund

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This next sample is a 2-in-1 plan since I’m able to offer my client Income Continuation + Fund Accumulation. For an annual premium of 62,440 payable for 10 years, he gets a 2 Mil coverage which is meant for the surviving family; and then there’s a projected “side fund” of 1.4Mil by end of year 20/ age 55. This is best used for Income Continuation plus Funding for either college education or retirement.

Solution #3: Life Insurance + Investment + Critical Illness Benefit

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And lastly, I have the same 2-in-1 plan here, but this time my client can have a more comprehensive protection. By setting aside 56,000 to 69,000 for 20 years, he gets 2 Mil coverage meant for the surviving family and 1 Mil cash benefit to help him get back on his feet after an unforeseen illness. The good news is that aside from having peace of mind, my client still has that projected “side fund” of 1.6 Mil at age 55, which he could use for future spending, such as retirement.

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We can determine your life insurance needs for you: CONTACT US OR REQUEST FOR AN APPOINTMENT.

Depending on your budget, we can compute how much your family would need to sustain their basic expenses if the financial provider of the family was suddenly taken out of the picture. These are the steps that we will go through:


  • We will identify and prioritize your insurance needs and shortfall
  • We will compute how much those will cost in the future and adjust based on your financial situation
  • We will develop a financial plan customized to your goals and budget

IMPLEMENT– We will choose the appropriate product solutions for your life goals
REVIEW– We will track your progress in achieving your life goals

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