Traditional life insurance vs VUL

[bebeloo]

backread ako this weekend..baka di ko maabsorb to ngayon..hehe

balak ko sana bumili ng insurance and another MF.. kaso sabi kasi ng asawa ng sis ko which is an agent, parang talo ka daw sa VUL kasi yung gains mo sa huli eh parang hati (and not yung best na pwede mong makuha) between insurance and MF.. ewan ko ba..icclear ko pa 'to..pero sabi niya, alamin mo na lang talaga kung ano ba gusto mo, kung insurance ba talaga o MF.. ayun...nalimutan ko explanation niya eh..popost ko na lang once magets ko na..

[sachism]

Thanks dear please keep us posted

[betty]

^sum assured ba ay equal sa face amount?

yes

[betty]

sa Prulife sa pagkakaintindi ko pagexplain sakin. Sum Assured+ Death/Accident Benefits (kung meron)  + Fund Value at that time na namatay ka, Fund Value ay nakadepende sa Unit price. Ito ang makukuha ng benefeciary mo

Sum Assured is the Insurance that you pay for na kasama sa ammortization mo.

Tama ba?

are you a policy holder?

are you a policy holder? theres a booklet that explains what your beneficiaries get when you die.

[blooming]

backread ako this weekend..baka di ko maabsorb to ngayon..hehe

balak ko sana bumili ng insurance and another MF.. kaso sabi kasi ng asawa ng sis ko which is an agent, parang talo ka daw sa VUL kasi yung gains mo sa huli eh parang hati (and not yung best na pwede mong makuha) between insurance and MF.. ewan ko ba..icclear ko pa 'to..pero sabi niya, alamin mo na lang talaga kung ano ba gusto mo, kung insurance ba talaga o MF.. ayun...nalimutan ko explanation niya eh..popost ko na lang once magets ko na..

sis, may nakapagsabi narin nyan sakin.  ang insurance, insurance. pero if you want an investment, then go for an investment.  kasi nga daw nagiging mahal ang insurance mo if it is being combined with investment, parang ganun.

[betty]

As for your insurance coverage, the premium for this (or the insurance charge) is deducted monthly from your account value through the cancellation of units. Since the account value of your VUL policy is lower than its value a year ago (due to the decline in the net asset value per share of the Sun Flexilink Equity Fund), more units have to be canceled to cover for the insurance charge (which is actually a fixed amount monthly). If the account value of your VUL policy is not sufficient to cover for the insurance charge, you will be asked to pay additional premium to keep your policy in-force. The benefit of keeping your policy in-force is that, regardless of market conditions or how your chosen fund is doing, you are guaranteed to be covered with life insurance equal to 5x your regular premium. It also affords you the opportunity to invest in blue-chip securities, high-grade government bonds and other instruments that are otherwise accessible only to investors with a large sum of money. quoted from ms.rain

will elaborate tomorrow, naka mobile lang ako

[snowyice]

para sa akin if you want more money sa VUL do top ups rather than having a high premium para kapag bigla kang nagipit hindi ka kawawa pero siyempre lower ang insurance coverage.

[swit_squiggle]

inistudyuhan kong mabuti kung saan ba ako makakmura. just to clarify things out, ang VUL is a term insurance + mutual funds. marami ang charges during the 1-5 years andyan ang premium charges, monthly periodic charges at habang tumatagal pababa ng pababa hanggang sa 11th year, insurance charge na lang ang namaminus. i then compare on the 11 year na insurance charge if nag term ako mas malaki ang babayan ko ng 2-3x pero sa VUL hindi ganun. so?in the long run? mas tipid pa rin ang VUL sa insurance. and on the 10 year and every 5 years meron pang 2% na loyalty bonus ng average monthly fund mo. kung may 10M ka na in average fund? edi may 200k ka na loyalty bonus?parang hindi mo na rin binayaran ang insurance charges mo. sa MF walang ganyan.

tama rin na kung gusto mo ng investment talaga edi mag mutual fund ka. pero? yun nga in between pag may nangyari sa yo, subject to 20% estate tax iyon.

[blooming]

^ sis, how about VUL compared to a traditional insurance policy/endowment ng Sunlife/Philam?

[betty]

just to clarify things out, ang VUL is a term insurance + mutual funds. 

thanks for clarifying that pero baket nakalink sya sa number of shares ng MF?

[swit_squiggle]

good aftie blooming and mga ka sis. VUL in comparison to traditional products naman, the returns are guaranteed unlike VUL which depends on the market, stocks, bonds. pag sinabing guaranteed edi makukuha mo talaga iyon, pag nagpromise ang company sa traditional with endowment ng 60K every 2 years until 100 ibibigay talaga sa iyo yun mapadown o up man ang market and cash values as seen on the proposal are also guaranteed kung anong inilagay, yun ang makukuha for that year. dividends lang ang hindi guaranteed doon. because it would depend sa kita ng company that year. kaya maganda ring isaalang alang ang stability ng company at track record kung talagang walang palya silang nagbibigay ng dibedendo every year. kaya doon nagkakaiba ang mga company sa premium bakit daw mas mahal yung kabila kaysa sa isa, bakit mas mura, kasi tinutumbasan ng company ng magandang serbisyo at for the long term sinisiguradong mapapakinabangan dahil hindi nawawala ang purchasing power ng pera. hehe. may kamahalan sya kung hindi kaya ng budget. pero? sa may kaya, coins hehe.                                                                                                                       

actually may sarili pong navps ang VUL at may sarili ding NAVPS ang mutual fund. but it works the same sa mutual fund sis betty. i dont know if I properly addressed your question. hehe

[betty]

i mean why po nagdedepend ang insurance from VUL sa "investment"? eh diba nga po term life nag naka attach dun? so meaning to say hiwalay na product fused into one?
hehe gulo ko ata.

[swit_squiggle]

dapat po talagang linawin ang lahat kasi kinabukasan po ng pamilya nyo ang nakadepende dito. I congratulate everybody that made their step in preparing for the future of their family. karamihan dito kumuha ng mga 10 year paying period na VUL's and the likes. VUL works this way, lets say 10 years paying period, it was stipulated in the proposal that you have a a premium holiday but 10 years of paying the policy is not a guarantee that the company will no longer be requiring another payment. which means, it is only assumed that after 10 years, your investment funds has accumulated enough money to pay for the insurance charges until you reach the maturity age. all will still depend sa finacial goal ng policy owner, if he get the policy soley for protection then 10 years will be enough to cover for the charges. pero? kung retirement fund, then, top ups, is encourage. Maganda po ang pagkakagawa sa VUL if the owner fully understand the potential of this policy to earn and maximize its benefits. huwag po tayong malito, isang produkto lang po ito, linagyan lang ng twist. ang VUL kasi dahil may insurance component it is regulated by the IC, unlike mutual funds that is purely investment, it is under SEC na po.

[snowyice]

@betty sis VUL products based on prulife policies ha gives you the freedom to diversify your money meaning to say, you can tell the agent my budget is 50k but I want my insurance to be at 3M and the rest in investment something like that.  As per my prulife agent VUL insures upto 99 years old so thats not bad at all....ako ayoko mabuhay until 99 hehe...
nilagyan ng insurance ang VUL para maprotektahan ang beneficiaries sa tax. but as per our sis said VUL can be good at good times and bad at bad times kasi nga depende talaga siya sa market.  Like yung mother ng friend ko naglagay ng 1.5M eh bumagsak ang market natakot  kinuha ang pera 1.2M talo! Yung isa ko namang kakilala kumuha nung bagsak ang market at 0.40cents per unit ngayon nasa 1.5php na eh di GAIN siya. 

[betty]

swit_squiggle sa pru life kase for life ka magpay para di maapektuhan nga yung fund pero pwede mo nga din stop.

snowyice, sa sunlife ba hindi ganon?

[betty]

question pa pala, kelan mo malalaman yung number of shares na katumbas ng plan mo?
kase sa 1st year, dun sa mga premium payment natin, wala pa dun napupunta sa investment right?

[swit_squiggle]

sis snowyice kahit saang insurance company naman kasi yun ang pwede mong sabihin. gusto mo ng 2M insurance and the rest of the money you put in will go to investment and all company offers diversified funds mapa sunlife phil-am  axa o prulife o kung ano pa man. yun lang naman ang mga sikat e. hehe.

sis betty totoo na for life ang bayaran sa VUL's product IF you put in money more on the insurance and a portion only in the investment. but if you put more top-ups, more on the investment side, its possible na hindi ka na for life magbabayad kasi enough na ang fund ng investment to pay for the insurance, kasi doon iyon binabawas e. In the proposal it is mentioned that on the first year you are charge a number of __% for the premium charges and so on, and same with the next few years. and the remaining will go to your investment. meron na pong napupunta sa investment first year pa lang hindi nga lang kalakihan, pero?pwede mong palakihin sa pamamagitan ng pagdagdag ng excess premium. actually pwede mo iyan ihingi ng computation of charges sa company, kasi transparent naman sila dyan.

if you're reason for getting VUL is to protect your love ones and give you a peace of mind, by all means lakihan mo ang insurance BUT if your primary goal in investing in VUL is for your retirement and to protect the investment from estate tax incase of premature death, like what most wise americans do, a cautionary plan, what they do is they get the lowest possible insurance coverage and nilalakihan nila ang investment component. another secret in life insurance and investment. hehe.

[betty]

thanks sis! muah

[snowyice]

^good kung ganun I asked agents from other companies hindi ganun ang binigay sa akin eh. 

[betty]

sa traditional naman tayo, yung walang endownment.
baket mas mahal sya considering wala namang "cash benefit" every so years