Life Insurance or Retirement fund? (Thread 2)

[swit_squiggle]

on that note. in totality mg mga pre needs, kailangan nating abangan ang second chapter ng Pre Needs and this time on the hands of IC. hehe.  but you can always choose from the established institution if theres a doubt.

[blooming]

1st question -kelangan pa ba ng life insurance if hubby has the following:

1. educ plan for kid#1 + life insurance for 5 yrs - Philamlife
2. residential lot + life insurance for 5yrs - Ayalalife

2nd question - ok lang kaya na kukuha si hubby ng two more educ plans + life insurance for 5yrs for our kid#2 and kid#3 at retirement fund naman ang kukunin ko?

Btw, we both have Medical Insurance from our respective companies. Actually, more than 2 years ko na yata kinakausap si Ms. Rain about getting a life insurance + VUL from Sunlife... Pero, biglaan lang yun pagkuha ng residential lot kasi hehe.

TIA!

IMO, I am not so much of a fan ng educational plans.

Kasi feeling ko kahit ano pang retirement fund, savings --> mas malaki ang ma-s-save ko kesa sa educ plans available (at least when I was inquiring mga 5 yrs ago).

For us, una namin kinuha is trad life insurance (kahit meron na sa company kasi yung sa company term lang naman), then endowment plan/life insurance, then savings/investments na.

[mameejhy]

yung educ plus life insurance, sino ang insured yung bata or yung payor? usually kase its the plan thats insured, meaning, when the payor dies the policy is paid up.

at paki linaw yung sa life insurance nung bumili kayo ng lupa, hindi mri yan? meaning the buyer is insured same as the amount of the property so that when he dies fully paid na din yun.

if parehong oo ang sagot, better get another insurance, kahit term para sainyo merong maiwang cash

Hi! Yes, the payor is insured; 1 year to go and fully paid up na sya. Yes again, the buyer is insured same amount as the property; 1st payment pa lang so 5yrs to go

So, it's better to get another insurance? Like another educ plan or life insurance with vul?

[betty]

so the insurance he has is against the property, meaning to say when he dies during the paying period you will not get anything except the lot....
if this is so, get another insurance kahit term lang.

[swit_squiggle]

yes..ganyan sa bahay at sa kotse.

[betty]

i mean depende kase, may nakita kase akong ad dati, yung sa ayala ata yun, you get a free insurance ata... we all know na pag in house financing walang MRI since hindi sya naka mortgage kundi contract to sell lang.
mameejhy, check your papers

[juicy]

i am not a fan din ng educational plan, would rather invest sa MF ng para sa education ng anak ko.

big YES din na magkaroon ng life insurance,basic yan of all investments

[swit_squiggle]

They say nga it's better to save habang di pa umuulan. so anything that is geared toward the achievements of your financial goal is applaudable. I did not avail of the educational plan din sa anak ko dahil una secure first yourself and the breadwinner of the family. hindi makakapag-aral si junior kung sakaling may mangyari sa'yo. But definitely I'll get one for my son.

[loloy102]

gusto ko na rin kukuha ng retirement fund

ano ba maganda?

[kaycee0307]

mga sis okay ba kumuha ng insurance sa phil axa?

kaso parang namamahaan ako

ang ex. nya is in 5 yrs pag nahulog ako ng 343 330 meron akong 240,990 na pera + 1,900,000 na insurance

parang lugi ata ako nun

Phil Axa Life Basix plan sya

[swit_squiggle]

hi sis. why not weigh your options. assess your need. mas kailangan mo ba ng malaking insurance o mas kailangan mo ng malaking investments in the long run. always remember that all the funds on that piece of paper are not guaranteed. They are only perceived as market trend is always fluctuating. This kind of funds  are actually for the long term so kung gusto mong lumaki sya kalimutan mong meron kang pera dyan, balikan mo na lang pagtanda mo.

[ellyn0803]

Mga sis, i inquired with PhilamLife and I'm considering of getting Longevity Plus. Monthly Premium (if I'm the payor) is P3,613 only for 10 years. Sino po ang familiar with this plan kasi I'm planning to get 1 for me and for my 3yr. old daughter.

[freelancebuddy]

I just met with a Philam Life agent a while ago and I'm considering the Guardian 65 plan he's offering me. Basic life insurance until mag 65 years old ako. P500,000 face amount. I'm 24 years old and according to his computation, I'm going to pay around 14,9++ per year for 5 years.

[TheGoat]

^^every policy may 2years contestability period

Not all.  1 year-Term Insurance don't have 2 years contestability period... only 1 year contestability period.   



When you guys buy an insurance policy, are you buying a product or are you taking a step to something that you want to have in the future?  If your insurance agent is only proposing a product with a face amount rather than finding out with you what you need and offering something to cover that need, then you need to think about looking for another agent.

[freelancer_babe]

get a life insurance first - at least a term life insurance... before a retirement fund. And yes, establish an emergency fund too.

For me, retirement fund should be invested in inflation-beating investments. Stocks, aggressive UITF and aggressive mutual funds are better places to keep these. Hindi na ok ang savings, time deposits at SDAs because these don't give returns that beat inflation.

Unless, you have decided to build retirement fund when you are at your late 40s or 50s (mas ok ang mga balanced funds, fixed income funds or bonds dito to avoid loss of capital). Switch to savings, time deposits and SDAs when you're at your 60s na.

[Onatopp73]

For me, I have 2 Sunlife VUL's, meron kasi syang mutual fund sa loob at insured pa ako at the same time. Pag nakaipon ako balak ko rin kumuha nag Sunlife money market mutual fund for emergency fund ko para di ko magalaw yung vul ko.

[swit_squiggle]

Onatopp73 just a bit of advice. Though I'm a believer of Sunlife advocacy, I also believe that emergency fund and other money matters intended for short term goals (1-2 years), you must think twice before putting it in a money market mutual fund, since there are exit fees at dahil nga sabi mo pang-emergency sya baka mas mataas pa ang fees sa kita mo. Sa mutual fund kasi parking area lang ang money market of the perceived market down and switching of funds, sa mga may ESP ito ha. hehe. It's better that you put it in SDA's. Mutual funds are from medium to long term goals 5 years and above.

[freelancer_babe]

ako rin @swit_squiggle, I don't like the idea of putting emergency funds in Sunlife VUL. I also think it's better to put emergency funds in savings, time deposits (better option) or SDA offered ng BPI (best option).

Emergency funds, should be very liquid, readily accessible and doesn't suffer capital losses (except for inflation). Doon sa Sunlife VUL, my agent says it takes around 5 days raw to get the cash value - this info alone defeats the purpose of using Sunlife VUL as emergency fund. Of course that 5 days means business days and not counting those holidays...

Tapos capital losses pa ang mutual funds. Just as they gain more than a savings or time deposit account sa bank, they also lose.

Paano kaya kung kailangan mo ng pera for hospital expenses, medicines? Any expenses that deals with life and death matters... yang mga yan, kailangan ng pera agad yan. Probably tens or hundreds of thousands of money!

Yung money market funds, sa tingin ko hindi rin maganda doon, but some use it for emergency funds. Pero tama, there could be exit fees for early withdrawal. Doon pa lang lugi na yun because money market doesn't earn much.

also, @onatopp73, one insurance that covers around 3 or more years of your annual income should be enough na. you don't need that other insurance. you should have invested it na lang into Sunlife's other product - yung pure mutual funds lang na walang insurance. If you decide to place your money doon sa pure mutual funds nila for five years or more, tax-free na ito at waive na rin nila ang exit fees.

I also have a Sunlife VUL, I have paid 5 years into it. Every month there's always a fee. Kahit lumiliit every year, may fee pa rin. Sayang ang earning potential dito. I've computed pa nga, that over the years, mas maganda pa ang separate na term life insurance ang kinuha ko (which is around 1/4 as cheap as a VUL), tapos invest ko ang natira sa mutual funds nila for long term - kung nalaman ko lang noon na walang exit fee at tax free na pala ang mutual fund product nila, if I decide to put in my money for more than 5 years. Mas malaki pala ang kikitain kung ganun.

[swit_squiggle]

computing your 5 year investment with VUL's. lugi ka pa dyan sis freelancer_babe. honest to goodness answer. kasi meron din ako at yes, mas malaki pa ang charges ko kaysa sa laman ng fund ko. kasi malalaki pa ang charges nyan sa umpisa. because what you are paying for in the 1-5 years is the privileged that you can put in money, equal to the premium without any sales load or charges on your investment portion five years thereafter until age 88. but looking for the long term you can't get wrong with that plan. because the insurance charge is lesser compare to the actual term plan. half the price. 

[freelancer_babe]

tama ka @swit_squiggle, loss pa rin.

I've made my own projections. It takes around 11 years to break-even at projected 10% average income. Mga 21 years pa nga kung lumalaki lang ng 4% ang cash value ng fund ko. Conservative projections na yan.

I've an aggressive investor. 50% is on equity funds, 40% on balanced funds and only 10% on bond funds. Kailangan talagang malaki ang kitain ng cash value over very long term (more than 20 years).

The more I learn about financial literary, the more I realize that I was wrong in using VUL for saving for retirement.

For the same amount of money, better returns are achieved using 2 separate products: term life insurance for the same face value as when taking a VUL, and the remainder of the money spent on mutual funds that don't have exit fees and are tax-free pa kung long-term ang investment (unlike VUL na may fees per month on all years throughout). Plus, sa first year pa lang kumikita na agad ang mutual fund because there aren't much fees.

Meron ang dalawang products na yan sa Sunlife.

Originally, I've had that VUL because my original intention was to build retirement funds. Ngayon, my plan is to use it simply as insurance lang with additional cash value at this time na working pa rin ako. After retirement, I could use part of the cash value for hospital expenses, another part to pay for the life insurance premiums until its maturity, and any extras to augment retirement funds.

I decided not cancel the VUL though. Tataas lang ang premium ko for a new policy. Mag-o-open na lang ako ng separate account for retirement. So far yung no back-end load na mutual funds na product ng Sunlife ang gusto kong paglagyan nito. So far this one is still the best I've seen so far.