Life Insurance or Retirement fund? (Thread 2)

[caterpillar-girl]

swit squiggle: Technically anytime she can withdraw right? But there are funds na 10 years pa bago kumita yung money. Borrowing against yourself may mean may loss ka. Also, hindi ba may charge if she does that? Wala upon withdrawal but the  next time she puts in money again sa policy nya may charge na sya?  Sabi sa akin ng agent ko 5%. Is that right?

My understanding is, if you need to be liquid, baka VULs are not the best vehicle for you since ideally pang long-term investment horizon sya. 

[swit_squiggle]

^ hi sis, yung "Fund value as of current date" info that we see on Sunlink Online, yun ba ang available fund that you can withdraw?

Actually sis, ang nag aappear sa sunlink mo is the NAVPS reading 12 noon the other day until 12 noon yesterday.So unless you make a withdrawal, dun mo lang talaga malalaman kung magkano ang value ng money mo. kaya nga, clients like you are advise to wait at least 3 days bago makuha ang money to a maximum of 7 banking days.

swit squiggle: Technically anytime she can withdraw right? But there are funds na 10 years pa bago kumita yung money. Borrowing against yourself may mean may loss ka. Also, hindi ba may charge if she does that? Wala upon withdrawal but the  next time she puts in money again sa policy nya may charge na sya?  Sabi sa akin ng agent ko 5%. Is that right?

My understanding is, if you need to be liquid, baka VULs are not the best vehicle for you since ideally pang long-term investment horizon sya. 

Yes, you can withdraw anytime. Free one time withdrawal each year ang VUL's but pag twice na you are charge 1%. the 5% that you are saying sis is applicable for the Top-up. e.x. Actaul premium is 10,000, any amount that exceeds dyan may 5% charge na. Since it's an insurance cum investment product, napupunta ang charges to buy additional insurance and a part of it goes to management fees.

Liquidity per se, it's very liquid kasi in just 3 days money on hand na sya unlike real estates. kaya nga, when making a decision to buy such product, goal is "give it time". 

Policy itself is a property. pwede mo syang gawing collateral, basta malaki na ang value nito. I know some people who accepts this sa kanilang mga business transaction. 

[caterpillar-girl]

Guys, may term insurance ba na level lang, meaning di tumataas for like 10 or 20 years? Pls suggest if you know of any. Level and sana may option na convertible to whole in the future, just in case. Thanks a lot!

[mxherr5]

yes. 5/10/15/20 and up to age65 ang usual term products.
and guaranteed convertability to whole life is a norm for these
products

[summer_princess]

I think mas ok for me ang life insurance with earning benefits. Dina raw uso ngayon yung long term payment. I got one payable for only 7years. Almost times 3 the annual premium yung coverage ko. I can pull that out at certain period and nageearn na rin yung binayad ko. At the same when diagnosed with terminal illness, I'd be given half of the insured amount.

[reddiamond]

I prefer life insurance kasi retirement fund na din. Yung kay hubby 60K per year for 10 years. Sa akin instead na insurance ipapasok namin a mf. Sana noon ko pa nabasa itong thread na to para mas maaga awareness. Pero at least nakapag-start na kami.

[summer_princess]

Hi sisses any inhouse agents here of philam & insular.

Need quote for my hubby, just the usual life insurance (sans the stock/dividend option)
payable for 5,7 or 10yrs. Kindly PM me so I could give the details.

Thank you.

[artificialstar]

i have life insurance but plan ko rin kumuha ng retirement fund later. parang maganda yung sa philam. so i don't have to rely sa aking mga anak in the future para sa mga gastos ng medicine, and stuff

[mxherr5]

@ red,
good plan re MF investment.

Just curious though.. what are your husband's
particulars? Lump sum ba yan when he reaches
age 60? Or yung X pesos every Y years?

[reddiamond]

^x pesos every y years kasi nagbabago fund value. the insurance is sunlife maxilink.

[Elle]

I'm really interested in getting term insurance for me and my hubby. I hope someone here refers me or sends me a PM.

Thanks

[mxherr5]

@ red, oh you have a limited pay VUL
which is really like term plus MF..
Akala ko yung traditional endowment type insurance.


Imemention ko sana about the dangers of inflation

Carry on 

[leelou]

^ what about the endowment type insurance brod? meron ako nun! 

[brandi]

What's the difference between life insurance,term,retirement?

Im planning to get an insurance 25 na ko. and im thinking of either sunlife or philam kasi isa sila sa sure akong hindi scam o ttakbuhan lang ako hehehhe.

My friend told me na for example 5yrs ka magbabayad. on the 6th yr onwards, youll be receiving a percentage monthly. just forgot her insurance company.ganon ba talaga yun?tia sa tutulong.

[chefron]

Why is it mahal ang premium ng manulife?

[mxherr5]

@brandi,

-> You should google what each one means as you
can find so much more information on google.

But to give you a quick idea, term insurance is a type
of insurance and there is no "retirement" product per
se. There are pre need pension plans and life insurance
plans designed as retirement products though.

-> No life insurance company has ever failed its
policy holders, ever. And a strong company doesn't
guarantee that you won't get scammed.

The weak link is the agent.

Unethical agents will not explain everything about
their products. Example, saying that you only have
to pay for 10 years then the dividends would take
care of your payments.

They don't say that if the dividend goes down, then
you might have to pony up more cash than you expected.

That's one example of a minor problem that might
happen to you. And of course, the insurance company
itself is sorta innocent here. Although they shouldn't
have hired the agent in the first place hehe.

Then there are cases wherein the agent doesn't remit
your payment to the insurance company. Akala mo bayad
ka pero inipit pala ng agent mo.

Then there was even a case I saw in philstar where the
client wanted to get his money out. So the insurance company
issued a check named to the client. The agent gets the check
and opens an account with a bank under the client's name
and gets the proceeds from the check. When the client followed
up with the agent, the agent said that the check is still being
processed. The theft was only discovered when the client went
straight to the insurance company.

-> That's one example of an insurance product.
Pero hindi monthly.
Normally, you get X% of the face amount every Y years.
Example, 10% of 1M every 5 years

[brandi]

Hi mxherr5 i just finished backreading this thread.

Ask ko lang,so kung kukuha ako ng insurance mas advisable kung yung whole life insurance kukunin ko? i just turned 25 last month. what can you suggest that you think is best for me?

Ladt week ko lang narealize na importante pala ang insurance kaya gusto ko na tuloy kumuha hehe. yung job ko kasi ngayon is in 1 of the largest insurance comp sa US. kaya nung diniscuss samin doon ko lang natutunan na ganun kahalaga yon.mandatory kasi sa first world countries ang pagbayad pala sa insurance di tulad dito satin na hindi tayo aware na importante ito. so yun kaya ko gusto kumuha.

May diniscuss yung 1 trainor ko na may comp kasi na halimbawa after 5 years of paying may makukuha ka na after and hindi ka na magbbayad?correct me if im wrong. di ko lang sure kung monthly ngayon o yung tulad na sinasabi mo na yearly ang bibigay na % sayo.

Ask ko na din, bakit need pa ng retirement fund kung may makukuha ka din naman from the insurance after ilang years. also, what's so important with the mutual funds?

Bakit kumukuha pa ng retirement and mutual funds kung nagiinvest ka na din naman sa insutance?

Thank you in advance!

[mhy_pie03]

^ There is what you called VUL meaning you are being protected while investing. The main reason why one has to get a life insurance is to secure your loved ones who are all relying on your monthly income. Which means, if at any point they lose you, the certain amount you have placed on that life insurance would be able to cover your medical expenses as well as provide a lump sum to sustain their needs in a span of time (so they would need to make the money rolling). As for the retirement, of course you don't want to grow old penniless. Mutual fund is the bonus part wherein apart from everything a portion of your money is being invested for it to grow instead of leaving it elsewhere which makes it devalued due to inflation.

[mxherr5]

@brandi,

Your question about Whole Life insurance would really be
best answered by an agent after doing a financial needs analysis,
or that's what they usually say =D and I'm not an agent.

But I personally have a regular pay VUL.

I saw that Philam's Leisure is designed that way.. Its a life insurance product designed
as a retirement product. It allows for a monthly payout for 10 years after maturity.
That maybe what your trainer was referring to?

Is your global company AIG by any chance? =D

Again there is no retirement per se.
There are pre need and life insurance products designed for retirement or whatever
you want to use it for.

As to your question on why people would invest in mutual funds when they would
be getting from life insurance(assuming the life insurance you got is designed to
be a retirement product. Note term insurance is pure protection, you get nothing
from it unless you die)

You just have to look at mhy_pie03's answer, its because that insurance benefit
you're going to get at age 65 would be soooo devalued by inflation that it might
not last for more than a year hehe.

Example,
1M today with an average 6% inflation rate would be worth 72k in 45years.

And contrary to mhy_pie03's answer where she said the MF is just the BONUS,
its actually the opposite. the MF is the biggest part of your portfolio! Do not rely
on insurance for your retirement needs.

Unless you have a VUL, which is basically like you getting term insurance and
investing the rest in an MF/UITF.

If its a traditional life insurance, good luck.. sa inflation pa lang, talo ka na.

[swit_squiggle]

Life insurance per se is a tool for risk management and not an investment vehicle if your looking for high returns. If you buy the right term life insurance, it does the job beautifully well. But that doesn't mean whole life doesn't have it's purpose.

So you should buy term life insurance if you are financially responsible for others for a specific period of time. But if you have plan of accumulating properties and wealth and things to pass on for your children,  you might consider buying a whole life for estate tax settlement later on. Since most people die past the age of insurability. Key in as well the funeral cost if you were to live 50 years more, a simple funeral/burial expense would cost 100,000 of todays value but after 50 years it will cost your family 500,000 pesos or more. Wow!! Then where will your family get that? Might as well, trash your body somewhere dim at least its free.

If your looking for returns,  Whole Life insurance is not the right avenue coz it will never ever be at par sa returns ng mga investment.

The bottom line is, whole life insurance is not an investment. The returns are terrible because the costs are very high. But it wonderfully does it's job when the right time comes. Ooops..there will never be a right time for dying. haha!