Life Insurance or Retirement fund? (Thread 2)

[mameejhy]

^Magkano ang babayaran - kunwari yun sa kukunin mo?

[punkrockprincess]

I'm planning to get Php 2 million coverage so I'll have to pay around Php 3k+ per month.

[brandi]

I was planning to get a term insurance from sunlife 18 years to pay then lifetime coverage. i was thinking about vul kasi di ba get insurance invest the difference. kaso parang parehas lang naman halos ang coverage with the vul tapos may hospitalization ka pa na rider na pwede idagdag. and maghihintay pa ko 6 years to get endowment of 40k then 2months thereafter. wherein sa vul pwede ako kumuha isang bagsak as long as may matitira pa din sa policy to compensate for the life insurance part. so now im confused. can someone please enlighten me with the pros and cons for both para makita ko talaga which is better? tia!

[mxherr5]

@brandi, I don't think that's a term insurance you got there.

Term insurance do not endow.
Term insurance is just plain insurance, meaning you pay
and pay during the "term". If you die anytime during the
term then you're beneficiary gets the insurance benefit.

If you don't die then you don't get anything.

The cheapest term insurance is the yearly renewable.
The term is just for one year then when you renew
the premium goes up.

So, its best for cases wherein you just need temporary
insurance like let's say you loaned 1M and you plan to
pay it back in 3 years. You can get a yearly renewable
term insurance.

Then there are level term insurance, 5, 10, 15, 20 years
depends on the company. And also level to age 65.
The premium remains the same for 5,10,15,20 years
or until you are age 65.

Its best for when you needed a "longer" term. Like
when you just gave birth and you want to make sure
your child can go to college if something happens to you.
You get a 20 year level term insurance.
So if something happens to you during that 20 year term
your child is secure.
After 20 years has passed, your child should have already
graduated and hence there's no need for you to extend.

If you're asking for term insurance and that's the product
the agent is offering you either your agent is incompetent
or he is maliciously misleading you. Either way, I'd just
change agents.

Go ahead and look at term insurance. You don't really
need to look at a proposal. Again term insurance is just
plain insurance. Just look at the premium and you're done.
To give you a baseline,
Age 20s Level term to age 65: Php 6,000+ per year
Age 20s Yearly renewable term: Php 3,000+ per year

So when you compare BTID(Buy Term Invest the Difference)
you get the total premium you'll be paying for your VUL, let's
say 20,000 per year then you get the term premium 6,000 or
whatever you'll be paying. Subtract and you get 14,000.

So if you'll be paying 20,000 on your VUL
on your BTID you'll be paying 6,000 for term insurance
and then investing the 14,000 in UITFs/Mutual Funds.

When I was shopping for insurance way way back.
I found that term insurance + investing in other funds
is cheaper at age 65 compared to VUL.
Except if I go with Sunlife's VUL.

[brandi]

@mxherr5 thank you! yes that's what the agent told me. i think the policy is sunlife elite peso if i am not mistaken? According to her elite policies have endowment while classics don't have that's why she offered it to me. i've seen the proposal and it was even written there that on my 6th year i will be receiving 40k endowment then every after 2 years na same amount din. it is payable in 18-20years kasi if i will shorten it tataas ang premium ko. face amount is 1m lang thhen if i die it doubles so 2m. if death would be caused by an accident, death benefit will double so beneficiaries will receive 4m. i haven't signed it yet since i am still confused. she is also offering me a vul under sunlife. with the vul, i'll be paying low premium compared with the term insurance that she's offering me tapos i will be hitting 2birds na (insurance+investment) so i am considering to get vul na lang. But i've always read nga na btid kaya naguluhan ako. so you think sunlife's vul is ok naman? btw according to her, with vul daw, i can withdraw daw unlike with term wherein i will be receiving endowment lang. as long as there'd be still something left to.compensate for the insurance part, i'm good. plus, even if i won't be able to pay agad, it won't matter if it's lapsed unlike term. do you think they're vul is ok?

[mxherr5]

ok, first off what she's offering is not term.
read that a few times and internalize it.
then quit referring to it as term insurance.. its not. 

here's the link to the product she's offering you:
http://www.sunlife.com.ph/philippines/Products+and+Services/Individual+insurance/SUN+Smarter+Life?vgnLocale=en_CA

The fact that it has cash values and dividends
(3rd in the benefits list) proves that it isn't term.

Again term insurance is just plain insurance, there
is no cash benefit unless you die.

Sunlife has 2 term products
Here:
http://www.sunlife.com.ph/philippines/Products+and+Services/Individual+insurance/Sun+Term+90?vgnLocale=en_CA
and
Here:
http://www.sunlife.com.ph/philippines/Products+and+Services/Individual+insurance/SUN+Safer+Life+-+5+Year+Renewable+and+Convertible+Term?vgnLocale=en_CA

Term insurance premiums are super duper cheap compared to VUL premiums
and traditional insurance premiums, as in malaki ang gap.

Just remember though that VUL is basically just like BTID.
Inside the VUL, you are charged insurance charges and admin charges
which can be compared to term insurance.
Then inside the VUL, there are investment funds which can be
compared to you investing in mutual funds or UITFs outside the VUL.

That's why there's a debate between VUL vs BTID because they are
pretty much the same.

Pero with BTID, you are only getting insurance
from the insurance company and investing with investment companies
or banks.

With VUL naman, you are both getting insurance and investing with
the insurance company.

It depends on your situation. I've bought 2 Sunlife Flexilink policies
because it met my needs. I also have 2 Insularlife Wealth Secure policies because it again met my needs. And I also have 2 Manulife Term policies because yes, it met my needs.


She is correct. With traditional life insurance you have cash values
which is not "withdrawable" per se. You can loan against your cash value though.

With VULs naman, you can withdraw your fund value anytime.

And yes, you can opt not to pay as long as the fund value is sufficient to absorb all monthly charges

[brandi]

^ok thanks! i guess i will just get a vul instead. may i ask mxherr5 why did you get 2 of each of the policies you said you've got? isn't it redundant na? of those policies that are the same, anong gap nila when you got the next one? For example yung flexlink mong 2, gaano katagal when you got the first one bago mo kunin yung isa pang same policy? thanks!

[chefron]

what can you say about YRT?

[mxherr5]

@brandi, years apart ang gap.

Note that the 2 policies means one for me and one for my wife

The Sunlife VUL we got when we were newly weds, I wanted insurance
covarage independent of my employer.(I had insurance thru my work
back then but my current employer does not give life insurance benefits)

The Insular VUL we got it for retirement purposes, I can choose the insurance
benefit kasi thereby controlling the amount of charges and I can also choose
the amount of premiums unlike sa Sunlife where the insurance benefit has a fixed
premium. This way I have money that is protected from estate taxes and also
just protected in general as money in insurance policies are not garnishable(as far as I know)

The Manulife term insurance was purchased when we got a home loan. They had the cheapest
product that had critical illness coverage, disability coverage due to both illnesses and/or accident.
I wanted our home loan paid for if something happend to either of us.

[brandi]

^don't you find it difficult to pay for all of those policies?how do you manage to pay all of those?and is it true na ok ang vul when.ot comes to tax matters?

[mxherr5]

No, I use my bank's online bills payment to pay for
the premiums.

Ok compared to what?
All insurance policies can be estate tax free if you
designate your beneficiary as irrevocable, is that what
you are referring to?

[mameejhy]

mxherr5 - Sir, I really admire your wisdom!

Share ko lang, here in Qatar, if you take out a personal or car loan it automatically comes with an insurance. If the person died or terminated from work, the loan is automatically paid.

Insurance being free from garnishment - parang gusto ko na mag top up ng mag top up sa Sunlife VUL ni hubby para may 'non garnishable' money kami

brandi - declare your beneficiaries as irrevocable so the money would be tax-free

[brandi]

Yes thank you!

[chefron]

which would you choose, a 2M term life coverage or a 1M VUL, lets say that they have the same premium?

[mxherr5]

Why are you choosing between different products and
with different face amounts?

Either you need 2M or you need 1M

or maybe 2M term and 1M VUL + 1M term?

[mameejhy]

which would you choose, a 2M term life coverage or a 1M VUL, lets say that they have the same premium?

It depends on your need. Do you need short or long term coverage?

[sales_lady]

I have a life insurance na... now looking for a good retirement plan... what would be the best option kaya?

[chefron]

It depends on your need. Do you need short or long term coverage?

dun nga ako medyo nag iisip, kase syempre i want to assume that i would live longer than 65 hehe, though some say that we dont need to be insured by that age since our children would be on their own na, eh ayoko naman maburden sila sa estate tax. gusto ko din naman ng malaking coverage dahil madami akong anak, of course syempre yung minimal din ang premium....magulo ba? hehe

[chefron]

good news!!!

we can avail insurance products of other countries pala! grabe so mura compared to our premiums here in pinas.

[ikaela]

^Wow, talaga? How? And from which companies? Share naman ng info