Zurich (Futura) Life Insurance and Friends Provident Savings Investment Plan… is it safe to invest on a US$ based plans?

July 9, 2012 | By Fitz | Filed in: Investing.

hello Fitz,

By following advices i found in sites like yours, i have now “diversified” my portfolio with the following:

1.  Real estate – condominiums (for renta purposes) [still paying though…]

2.  FAMI SALEF

3.  Government Bonds (foreign currency equivalent to PHP 60000)

4.  Fixed Deposits

Now, since ive realized im not protected yet, i just got a life insurance for myself and my husband from Zurich (under a product name Futura).

We’re paying in US$. The cover for each is US$ 100,000.00 in time of death. And there’s a rider for permanent diability and accidental death for another US$ 100,000 for each applicant.  We can also get the full cover anytime after 6 mos in case of critical illness (God forbid) like cancer, stroke, blindness, (there are 18 types)… but the policy stops after that.

I just also started a Savings/Investment plan (similar to Mutual Funds) which is buying units from International Portfolio like latin America, Emerging Markets like India & Asia, Black Rock, Templeton etc. the plan is termed for 5 years.

The question here in, how practical or intelligent to invest in International portfolios like the above which in US$ based.  What is my gain on this strategy?

If the peso becomes so much stronger in the next 20-30 years against dollar, should i consider a lost in the above especially the life insurance?

many thanks in advance for your sound advise.




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2 Responses to “Zurich (Futura) Life Insurance and Friends Provident Savings Investment Plan… is it safe to invest on a US$ based plans?”

  1. KCOM says:

    fitz is quiet familiar with Philippine setting but he can tap various resources to clear this out.

    as a lurker, im curious with the 20-30yrs of projection, its difficult to see the impact of the US/europe ahead of that given period. what happens in these areas may somehow reflect us after some months or so, but right now we have a robust growth its youg and slow but looking like a good leaf to harness (Philippine setting.) very feasible to ask rather are the templetons and blackrocks about their palns and contingecies. if i have that amount i will try my bet to build communication with them how they are handling the investments and then go from there.

    i also have curiosity if the insurance company will answer claims outside US, USD100k is looking like a gamble, but its better thatn nothing. i also eager to know if this external insurance have caluses of boundaries and countries. It also raises questions whether diversification means having investment products availed and filed under one country is a sort of diversification or having all these investment products be availed to different countries is a diversification – to minimize risk.

    Why is there a loss if the peso grows over the dollar? Are there plans to be based in the philippines? im curious about this inquiry. i would like to echo the ‘gain strategy’ when diversifying the investments elsewhere? is it currently gainig right now or just plain sleeping? i wonder how that works, and how can it be avoided.

  2. PinoyFinancialCoaching says:

    I’m working here in Dubai and both of these are offered by these above institutions.
    Don’t get these Futura and PFI Savings/Investment plan. They maybe similar to Mutual Funds, superficially, but examining them closer you will find they are different.

    First, these funds being offered to you are really “mirror funds”. They have double sales load and double management fees because they mimic another fund. They have quarterly charges of X% cancellation of units investments,etc.

    Our Phil MF like FAMI have straightforward fees structure.

    Second, there’s a minimum period you should subscribe for your investments, typically 18mos to 24mos. If you wont complete that (ex. due to layoffs), you will forfeit your investments.

    Third, for diversification, either take a direct mutual fund or ETF or Index fund, if you wanna maintain some of your money in USD. Me, personally I have a PHP:USD investment in 85%:15% ratio. Keeping a small $ portfolio for my future expenses denominated in $ currency.

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