What kind of policy is recommended for Mr. Juan dela Cruz given his earnings, age, savings, and risk tolerance?

The recommendation for a variable life policy for Mr. Juan dela Cruz takes into consideration several important factors, such as his earnings, age, savings, and risk tolerance.

Variable life insurance is particularly advantageous for individuals who have a moderate to high risk tolerance and are looking for growth potential in their investments. This type of policy not only provides a death benefit but also includes an investment component that allows the policyholder to allocate a portion of the premium payments into various investment options, such as stocks, bonds, or mutual funds. Given Mr. dela Cruz's scenario, it is likely that he is seeking a policy that can offer both a protective element (insurance) and the opportunity for cash value accumulation aligned with his investment goals.

Additionally, variable life policies can adapt to changes in the policyholder's life circumstances. For someone with a stable income and the capacity to engage in investing, a variable life policy allows for greater flexibility and the potential for higher returns compared to more traditional policies that may offer fixed returns. This structure resonates well with individuals looking to balance protection with growth, especially as they seek to build savings for future needs.

Overall, recommending a variable life policy indicates a strategy that aligns with Mr. dela Cruz's financial aspirations and attitudes towards investment