Life Insurance or Retirement fund? (Thread 2)

[loveann]

Sis, im a bit worried na sana hindi naman matulad ang ibang Insurance kami sa ibang insurance na nagclose kasi lugi sila. 
I have life insurance in Sunlife, kasi sayang naman un inenvest ko. Pero I inform my sun life advisor about it sabi nya mga pre-needs insurance talaga un nalulugi.

[chefron]

baket kaya ang mga agent ayaw magbigay ng quote for term insurance? mababa kase kita? LOL

[mxherr5]

Sis, im a bit worried na sana hindi naman matulad ang ibang Insurance kami sa ibang insurance na nagclose kasi lugi sila. 
I have life insurance in Sunlife, kasi sayang naman un inenvest ko. Pero I inform my sun life advisor about it sabi nya mga pre-needs insurance talaga un nalulugi.

Your agent is correct. You can rest easy knowing that no life insurance company
has closed shop yet 

[ann08]

confused lang po what is the difference between pre-needs insurance and life insurance company? aside from company yung isa? lol question got from the post below.

[mxherr5]

Well, before Pre-Need companies were regulated by the SEC while Insurance companies where under the supervision of the Insurance Comission but Pre-Need companies are now under the supervision of the Insurance Comission.

The other difference is with their products hehe

Pre-Need products are just from their name, a future
need. So basically, you know you'll need this money for
say education, burial expenses, etc. No matter what
happens, you will need the money. The pre-need company
then promises to grow the money for you so that when
you do need it, it would be what ever amount they promised. Most if not all, also have a term insurance
component from an insurance company, so if you cannot
pay due to death/injury and disability. The insurance
money would pay for your plan.

An insurance product on the other hand, is something
that is unexpected hehe. Like say, out of 10,000 cars
the insurance company issues policies on, probably
only 2 cars would encounter some accident.

Or out of 1 million people the insurance company covers, probably
only a few would die at any point in time. Thus the
premium would small compared to the potential benefit.

In other words, they can charge 1million people say 1,000
each and promise all of them that if they die, they would all
get 1million. They can do that because not all would die.
If there are less, than the expected number of deaths then
the insurance company would distribute this "excess" profit
as dividends to the policyholders

A pre-need product on the other hand would need to charge
a lot more, because they can only earn on your money. So if
you want 1.1 million after 2 years, and they expect to make 10% p.a.
then they might charge you 950,000. After 2 years, your 950,000
would grow to 1,149,500. They give you 1.1M and they keep the 49,500.

I am not 100% sure that that's how the finances on a pre need product
works but it makes sense. I mean, what else could they do. They're just
middle men for investing your money. Parang nag repack lang. They give
you investment returns and insurance coverage which they purchase from
insurance companies.

Just go with UITF and Mutual Funds and cut the middle man
 

[mameejhy]

^Sis, are you saying that we should just invest in uitf and mutual funds instead of getting a pre need plan (pension or educ plan)? 

Which uitf or mutual fund do you have?

[freelancer_babe]

^ Tama si @mxherr, cut out that middle man. He explained it well. Sayang lang ang binayad na pera to repack the plan. Those UITF and mutual funds basically do a good job. The preneed plans are indeed extra money generated by insurance companies, most probably to get a market of people who are not fond of investing.

In addition to what he said, preneed plans are unstable - here in Philippines. Life insurance companies don't easily close-up, but preneed companies do and they make it in the national news.

It will be a different situation, of course, yung mga preneed plans offered dyan place of residence mo. Baka mas stable pa.

[proudmom]

kumuha kami nang endowment plan with sunlife and lumalabas sa computation namin is mas malaki pa ang makukuha namin kung nag-TD na lang kami wih interest of 7% sa bank instead of pinasok namin sa endowment. i think you also have to weigh the risk ano. like sa bank if magsara mahirapan kang kunin ang money mo and interest. with insurance naman is kung makulangan ka nang pera madiscontinue ang bayad lahat nang pinasok mo mawawala. i wonder tuloy which is better in terms of less risk but better returns...

Endowment plan advantage is that you are insured at the same time.  If in case something happens to you, your beneficiary will still get the face amount  +  acc. dividends plus accumulated endowment, if there still is. (just make sure that you have contingent endowment beneficiary in your policy).   And it's estate tax free.  and hulugan mo siyang binabayaran.

[/quote]
with insurance naman is kung makulangan ka nang pera madiscontinue ang bayad lahat nang pinasok mo mawawala. [/quote]

Your premiums have cash value & dividends which you can use after 2 years of paying.   There are several non-forfeiture options in insurance. You can ask your insurance agent re: this.

With banks naman, your deposits are insured up to P500,000.   But if you say, you'll get 7% in TD, medyo kakabahan ka nga dyan. Interest is subjected to 20% withholding tax.  And in case something happens to you, your beneficiary will have to pay estate tax .

[loveyourlife]

Hello mga sissies! ^_^

Please give me idea naman on how much nag rarange and annual premium for pure life insurance and term insurance for a 24 yrs old turning 25 this July. Gusto ko yung may face amount na 2M.

Planning to get one. Ako kasi ang inaasahan ng Mama at little sister ko. Kapag nawala ako kawawa naman sila.

I'm thinking din kung pure life insurance or term insurance na lang since nag start na rin naman ako mag invest sa Stocks and planning to invest din sa Mutual funds. So please mga sissies!

I need idea kung magkano i budget for life insurance and/or term insurance.

Thanks in advance! :-)

[chefron]

sis better get term insurance sis you'll be investing in stocks naman.

[loveyourlife]

sis better get term insurance sis you'll be investing in stocks naman.

Hello Sis Chefron! oo nga eh. How much kaya ang magiging annual premium ko kung kuha ako ng term insurance. yung may 2M na face amount.

Mga Sis na agent ng Sunlife or Philam, pa PM naman sakin. hi hi ^_^

[mxherr5]

@loveyourlife,
it wasn't clear if you knew the difference, or lack thereof between
pure life insurance and term insurance.

On one hand, you said pure life insurance and term insurance
implying you think they're different products but then in your
next sentence you said or..

Anyways, term insurance IS pure life insurance. There is
no savings or investment component. Its just insurance,
unlike a whole life or VUL insurance.

And there's level premium to age xx normally 65 term insurance
a yearly renewable term insurance, 10 year or 20 year term insurance.

The shorter the duration the lower the premium payments.

When I was looking for an insurance plan for my wife, an age 24
female would have to pay 4-6k per year until age 65 for a 1M face amount.

Those figures are from Philam Guardian if I'm not mistaken and Insular's I-Insure.

I also looked at other companies' offerings but it must have not been good.. Hindi
tumatak sa utak ko eh hehe

[miksha]

If i am going to look for a pension plan/retirement plan what are the things that i should look for? like kung for example bibili ako nang bahay so syempre location, bahain ba, materials sa construction, builder, amortization, etc... sa pension plan/retirement ano dapat maliban pa sa trusted/matatag na company?

[luranski]

@miksha

Check first if your company has a retirement plan, some company offers a match to your contribution, parang 401k sa US. Maximize that if meron. Or sana, ma approve ng yung PERA sa Pilipinas. parang IRA ng US. =)

[loveyourlife]

Hello mxherr5! Thank you for replying to my post. Sorry medyo magulo yung pagtatanong ko.. hehe.. Yes correct ka term is pure life insurance. What I mean was term vs. whole life pla dpat.. hi hi :-)

Natuloy ba yung pagkuha mo ng term insurance sa wife mo? Which one did you get, Philam Guardian o Inular I Insure?

"4-6k per year until age 65 " meaning magbabayad ako ng 4-6k a year for 41 years?? tama ba?

Thank you ulit! :-)
 

@loveyourlife,
it wasn't clear if you knew the difference, or lack thereof between
pure life insurance and term insurance.

On one hand, you said pure life insurance and term insurance
implying you think they're different products but then in your
next sentence you said or..

Anyways, term insurance IS pure life insurance. There is
no savings or investment component. Its just insurance,
unlike a whole life or VUL insurance.

And there's level premium to age xx normally 65 term insurance
a yearly renewable term insurance, 10 year or 20 year term insurance.

The shorter the duration the lower the premium payments.

When I was looking for an insurance plan for my wife, an age 24
female would have to pay 4-6k per year until age 65 for a 1M face amount.

Those figures are from Philam Guardian if I'm not mistaken and Insular's I-Insure.

I also looked at other companies' offerings but it must have not been good.. Hindi
tumatak sa utak ko eh hehe

[miksha]

@miksha

Check first if your company has a retirement plan, some company offers a match to your contribution, parang 401k sa US. Maximize that if meron. Or sana, ma approve ng yung PERA sa Pilipinas. parang IRA ng US. =)

sis sahm ako kaya naghahanap ako nang magandang plan. bale lumalabas voluntary pension ito kaya private company hanap ko ayoko sa sss or gsis.

[mxherr5]

@loveyourlife,

Actually, I was just trying to see if BTID(Buy Term Invest the Difference) applies
here in the Philippines. I compared the returns on term+mutual fund or UITF
and a VUL.

Out of all the VULs, Sunlife's was the best when it came to the bottomline return.

The best term at that time was Philam's Guardian.
Sunlife's VUL won out over Philam's Guardian 

Then shortly after Insular announced their term insurance product.
It was better compared to Sunlife's VUL.

Too bad it was already too late hehe.

Yes, 4-6k until magiging 65 ka. And kung hindi ka madeds,
you won't get anything back.

[mameejhy]

^Bro, which did you get - Sunlife vul?

[loveyourlife]

Hi mxherr5! Thank you so much for sharing your insights and experiences. You're a big help! ^_^
So kung Insular I-Insure is better than Sunlifes' VUL then meaning I-insure is better than Philam's Guardian?Tama ba ako? Anong kinagandahan ng Insular I-insure? may money back ba siya? I saw on Philam's website yung Philam's guardian. According dun sa product illustration nila is 10 years to pay ka magbayad ng annual premium na 6k++ then covered ka until age 65? Tama ba pagkakaintindi ko dun sir? Kasi hindi ako comfortable magbayad ng until age 65. Parang matagal tagal na bayaran yun. hehe

Again, Thanks mxherr5! :-)

@loveyourlife,

Actually, I was just trying to see if BTID(Buy Term Invest the Difference) applies
here in the Philippines. I compared the returns on term+mutual fund or UITF
and a VUL.

Out of all the VULs, Sunlife's was the best when it came to the bottomline return.

The best term at that time was Philam's Guardian.
Sunlife's VUL won out over Philam's Guardian 

Then shortly after Insular announced their term insurance product.
It was better compared to Sunlife's VUL.

Too bad it was already too late hehe.

Yes, 4-6k until magiging 65 ka. And kung hindi ka madeds,
you won't get anything back.

[chefron]

Hi mxherr5! Thank you so much for sharing your insights and experiences. You're a big help! ^_^
So kung Insular I-Insure is better than Sunlifes' VUL then meaning I-insure is better than Philam's Guardian?Tama ba ako? Anong kinagandahan ng Insular I-insure? may money back ba siya? I saw on Philam's website yung Philam's guardian. According dun sa product illustration nila is 10 years to pay ka magbayad ng annual premium na 6k++ then covered ka until age 65? Tama ba pagkakaintindi ko dun sir? Kasi hindi ako comfortable magbayad ng until age 65. Parang matagal tagal na bayaran yun. hehe

Again, Thanks mxherr5! :-)

I-Insure is a term insurance, you dont get any "money back" with this plan.its only your beneficiaries who will benefit from this. eto yung product na kailangan mo if gusto mo lang na may makukuha ang mga maiiwan mo pagnamatay ka, sa murang halaga. pwede tong 5,10,15 years coverage or until age 65 nga. premiums paid ay magbabago as you age.

VUL, is an insurance product with investment na kasama.a part of what you pay for goes to fund investment and insurance. like any other life insurance this too is long paying, as long as you live, para di maapektuhan yung investment na kasama nito.although pwede din maging self paying ang premiums mo kung malake na laman ng fund value mo.

ang insurance product ay nagiging maganda depende sa nakikita mong magiging gamit nito sayo at syempre andun na din yung kung kaya bang bayaran or imaintain.