CPMCebuPropertyManREAL REVIEWS. REAL RETURNS.
MORTGAGE PROTECTION TOOLS

Protect your mortgage.
Then test the legacy.

Test a life policy assigned during the loan and retained afterward. Compare debt settlement, retirement access and inheritance against MRI plus separately invested savings.

Read the guide to the break-even point →
Original editorial illustration of a house, a protection shield and cash-value blocks for a Philippine mortgage insurance comparison
PROTECT THE LOAN. THEN TEST THE LEGACY.

Mortgage protection now; retirement or heirs later

Test debt settlement if death occurs during the loan, inheritance if death occurs after payoff, or retirement access while the policy continues. The main comparison keeps the policy after mortgage repayment.

1 · Loan and policy start

The primary default starts and assigns the policy in year 1. You can start it in year 1 but substitute MRI in year 2; both first-year premiums are then counted. BDO reference rates are ₱4.75 per ₱1,000 below age 50 and ₱6.50 at ages 50–69, checked 12 October 2026. They are not a market average or personalized offer.

2 · Death or retirement timeline

All events occur at the selected year’s end. A 20-year mortgage and one year after payoff means death / review in loan year 21. The property value is a common assumption; no appreciation is forecast. Death claims are assumed valid, admitted and paid under in-force policies. The MRI benchmark assumes full settlement of modeled principal. Exclusions, claim denials, accrued charges and settlement delays are not modeled.

3 · Retained policy quotations

Enter zero only when confirmed; blanks remain unknown. A death-claim figure must be the total payable under the contract, including fund value only if contractually payable. It should already reflect withdrawals and policy debt; the calculator deducts remaining assigned mortgage principal. Retirement cash must reflect prior withdrawals and charges. Extra top-ups must not duplicate premiums already counted. Ending scheduled VUL premiums does not necessarily end charges.

Traditional life / whole life

Use the total claim provided by the contract, separating guaranteed values from dividends.

VUL / variable life

Use the actual contractual total payout formula. Do not add fund value to a payout that already includes it. Future fund values and continued cover depend on funding and charges.

4 · Fair benchmark and matrix

Each policy is compared with MRI using the same annual funding budget. Unused premium money is invested separately at your chosen return. Both strategies fund the same retirement spending; consumed withdrawals are excluded from inherited assets. The matrix uses hypothetical endpoint benefits without separate term cover.

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Methods, boundaries and why the scenarios are conditional

Mortgage principal amortizes monthly. Costs and premiums are paid at each insurance year’s start. The retained policy is not surrendered automatically at mortgage payoff. Its annual premium schedule can end earlier, while explicit post-loan top-ups continue to the chosen event.

Every year, the funding budget equals the larger of the two strategies’ insurance/setup costs. Each strategy saves its unused budget at the chosen annual return. After payoff, an entered retirement withdrawal funds the same consumption for both strategies: the policy supplies it from its values; the benchmark supplies it from separate savings. In a death case, no withdrawal is counted in the death year.

Inheritance = property equity after claim + outside-policy savings + net death proceeds to beneficiaries. An assigned death claim first pays the modeled outstanding principal. An insufficient claim leaves a mortgage on the property. After full payoff, there is no modeled bank debt deduction. A VUL claim already incorporating fund value is counted once.

Premium ceiling equates the present value of the policy’s net benefits with MRI and separately invested premium differences, including remaining debt, any separate-term benchmark, top-ups and assignment fees. Property value cancels if both debts are settled. A chosen death year is a conditional scenario, not an expected return or actuarial valuation. Test later death ages and poor fund outcomes; an early-death advantage does not prove lifetime superiority.

The retirement view credits net recoverable cash at the review year without adding a future death claim. Keeping cover thereafter requires further funding and policy review. To examine retirement followed by inheritance, use a death scenario with annual retirement withdrawals and a death quotation reflecting those withdrawals.

No fund growth, policy charges, death-benefit formula, insurability or continued cover is invented. Those are quotation inputs. Mortgage repricing, surrender before the event, death probability, inflation, claim timing and taxes are outside this model. Inputs stay in the current page and are not saved or sent by the calculator.

Secondary scenario: surrender / cash out at mortgage payoff

This separate test ends at mortgage repayment. It excludes the later inheritance benefit and should not be used as the main test of a retained policy.

INTERACTIVE COST COMPARISON

Test your mortgage protection costs

Enter your loan assumptions and actual insurer quotations. Compare survival-to-payoff costs, then check the required cover and approvals separately.

1 · Loan and MRI assumptions

Initial loan, interest, age and opportunity-cost values are examples. BDO’s standard reference is ₱4.75 per ₱1,000 below age 50 and ₱6.50 at ages 50–69, checked 12 October 2026. This is one bank’s reference, not a Philippine market average or a personal quote. Your custom constant rate must cover the whole modeled period. Year 2 is a switch scenario, not a universal bank rule.

2 · Your policy quotations

Blank means unknown. Enter zero only when confirmed. Include required riders and any planned top-ups in the annual total. This model assumes a level premium during the selected payment years; a quote with changing renewal premiums needs an annual cash-flow review. Cash means net surrender / recoverable value after charges, policy loans and other deductions—not the face amount or death benefit.

Term life

Protection-only comparison. Terminal cash is fixed at zero. Use a level premium that lasts through the remaining loan term.

Traditional whole life

Use the net surrender value at mortgage payoff. Keep guaranteed cash separate from projected dividends.

Variable life (VUL)

Enter net recoverable cash under a conservative illustration. Fund value can fall, charges continue, and cover depends on the policy staying in force.

3 · Break-even matrix settings

The matrix uses a common cash percentage and payment duration across every loan amount and term. Quote comparisons above use each policy’s own entered figures. A short-term cell is not evidence that a real policy can build the assumed cash value that quickly.

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How the calculator works

The mortgage is amortized monthly at a fixed nominal annual rate divided by 12. Annual required cover is estimated from opening principal. MRI premiums and replacement premiums are paid at the start of each insurance year. Terminal cash is received at the end of the mortgage.

Premium ceiling = (present value of MRI avoided + present value of net terminal cash − present value of assignment cost) ÷ discounted premium-payment factor. Extra annual premium justified = (net cash PV − assignment cost PV) ÷ that factor. Cash needed at payoff = the positive difference between alternative premium/setup PV and avoided MRI PV, compounded to payoff.

The opportunity-cost input accounts for the time value of money and the alternative use of premium differences. It is an assumed comparison rate, not a promised investment return. For cash-out at payoff, premiums are capped at payoff. Later policy charges, continuing cover and retirement withdrawals require a separate review.

Results are conditional on surviving to payoff, maintaining cover and recovering the entered cash. The tool does not model death timing, lapse, future mortgage repricing, arrears, prepayments, taxes, early surrender, inflation or insurer underwriting. It does not fetch insurer quotes or verify bank acceptance. Inputs stay in the current page and are not saved or submitted by this calculator.

Reference sources: BDO Home Loan and BDO Life FAQs. Use your lender’s current written quotation and policy contract.