Traditional life insurance vs VUL

[Bel_84]

Hello sisses. Nag eenjoy ako sa thread na to to the point I printed the discussions already. Im interested in getting vul..my hubby works abroad and I work naman in a State Univ, permanent status. La pa kaming baby so I recently started investing in mf's..till I stumbled in one entry saying, we should invest first in protecting ourselves. Ayaw ko naman forever pag trabahuhin sa abroad si hubby, 1 year pa lang kame married and we talked na 3 years more pa, uwi na sya after makaipon to start business. Any advice re: getting vul? Any suggestions sisses?

[swit_squiggle]

congratulations sa mga future millionaires. I believe that the GT's sa thread na ito kung hindi man mayaman na e doon na ang papunta. whether you get VUL's or term alone and invest the difference, its a step forward of becoming a responsible parent and a loving wife.

This financial products are miracle products. you pay for centavo's you get pesos in return. its also self completing. Hindi mo man bilhin for yourself somebody will buy it for you (without life insurance and you die your family will pay for the funeral costs). in the end, binili mo pa rin.

[Bel_84]

^sent pm na ulit sayo sis swit_squiggle..thanks:)

Sa email mo na pala ko nag reply

[Onatopp73]

Para sa akin vul kasi me cash value kaagad and nagpaparticipate sya sa stock market, although magastos dahil sa monthly fees na binabawasan sa cv, but you can put money anytime pag gusto mo unlike yung traditional lifedi ka pwede mag-top-ups basta-basta.

[freelancer_babe]

If I would turn back time,

I would have chosen pala term life insurance over VUL. The earning potential is bigger with using term life insurance + mutual funds, than putting all the premiums in a VUL on the same face value.

[TrueWealth]

That really depends.

* term is great since it buys a lot of insurance, but as its name implies, it's temporary
* VUL's performance depends on the fund
* if you look at the rates, a lot of UITFs fare better than a lot of mutual funds
* traditional insurance is still better for the protection.
why? because it has a longer lifespan, one where you'll surely need the insurance to cover estate taxes.

If you're term insurance is used (usually you can only renew until 60-65 years old), you don't have any insurance any more.

Most people look at the investment side. I think UITFs do better, but you still need traditional insurance to cover your life.

[sachism]

Really sis? How did you compare?

[mxherr5]

I'm curious myself.. If I remember right.. I asked you the same question on another
forum.. I guess you missed it. 

Back when I was looking for an insurance policy for my wife, I also tried
comparing Philam's Guardian Level Term to Age 65 with Sun Life's,
Insular Life's and Pru Life's VULs.. I only compared these 3 because
they were the only 3 who gave out the CoI(Cost of Insurance Tables)

The COI btw is the missing part of the equation when you're trying
to recreate their illustration, you have the premium charges, policy
charges, etc but most only list the 1st year COI.

Plus, with Insular Life and Prulife, you can actually specify how much
premium you want with how much coverage you want unlike Sunlife
and other VULs where there's  a set premium for a certain face amount

So really, this was an apples to apples comparison.
Straight up, Annual premium 20.9k Face Amount 1M

Anyway, I assumed 10% returns and compared the final investment/cash value
at age 65 and Sunlife's VUL came out ahead of Philam's Term. Term Insurance
came out ahead of both Insular and Pru's VUL though.

I assume you also made a comparison using a level term to age 65 product
and not a yearly renewable term or 10 year renewable term, etc to make it
a fair comparison?

[sachism]

With this comparison? Walang kahit anong rider? Does this mean OK ang sunlife VUL compared with Prulife's?

[blooming]

sabi naman ng financial planner ko - if possible not to purchase insurance cum investments. parang instead na pure investments lang, mas bumababa ang returns kung ihahalo sa insurance. so for him, ang suggestion nya sakin before was pag insurance, insurance lang, pero sige kung gusto mo may halong investments - pero be clear on your objective na insurance lang. then for other funds na for wealth generation - dapat investments nalang at hindi na haluan ng insurance kasi nga bumababa ang kita.  pero for instances naman like TDs na very conservative - ang ayoko kasi sa TDs is the 20% tax. pag hinahaluan kasi ng insurance (VULs) para na-w-waive ang tax kasi.

just sharing, but at the end of the day, i am still unsure nga which approach is the best one. So ang gawa ko, i just maintained the insurance policies I have on hand. other funds, investments nalang talaga.

[swit_squiggle]

that's because in the first place it's not the insurance that you want but rather the investment sis. depende din kasi sa kung anong gusto mong mangyari sa finance mo e. if you want to maximize the full potential earnings without paying for the insurance part edi magstocks or mutual fund. if you want it naman na maprotect from estate tax, just in case of untimely demise, but capital appreciation pa rin ang hanap, mag VUL ka, if your too conservative to loose a portion of what you earned, edi mag bonds ka, TD, or another instrument is whole life insurances.

Mas magiging may katuturan kasi ang pagpaplano kung sa simula pa lang alam mo na kung ano ang objective at kung para saan ang pera mo. 

[mxherr5]

@sachism,

Yes, just the regular coverage, no riders... Cost wise,
mas ok ang sunlife compared to prulife

But then, pru life has better fund performance on average
and pru life also has a disability coverage already included
for free.

I would like to think that someday Sun life would hire
a better fund manager a few years down the road hehe
Yung charges kasi, andyan na yan eh.. can't be changed
except for the COI.

[sachism]

i agree on better fund performance ng pru with their new pro active fund.

[kisses1417]

i took Prulife 10 year VUL 2500 a month ko sya babayaran in 10 years. withdrawable din sya in the future and kung wala ako pambayad, kapag kumita na money ko let say 6 years from now, pwede yung kita ang ipambayad. pag di  ko ginalaw yung money ko, kapag 60 nako, im a millionaire na. hehe bukod pa dun insured ka, kung magkasakit man ako or maaksidente, wag naman sana, who knows diba, atleast di na ko burden ng mga anak ko ( single pa ako) pero im thinking of the future na. i think this is the best decision i made. kesa puro damit shoes at etc pa mga gastos ko

[sachism]

Congrats sis. It's a wise investment 

[kisses1417]

soooo happy!!

[lhanny_07]

Ako din super wise investment ang VUL for me and my hubby. At least after 10 or more years I can withdraw mine for my child's education and yung sa hubby ko for our retirement naman. I cannot save money sa ngayon kasi we are paying our downpay sa new house namin, at least may forced savings at insurance kami di na lang puro sa dp at home improvement. But maybe, this May 2012 (that time tapos na DP namin) I will have pure MF or Sun SmartStarter 8 naman.

[sachism]

what is SUn Starter 8 sis?

[lhanny_07]

sun smartstarter sis, nagkamali ako ng lagay, eto yung may endowment na 3% of face amount every 3 years. the payment is 8 years guaranteed.

[mameejhy]

if you want to maximize the full potential earnings without paying for the insurance part edi magstocks or mutual fund. if you want it naman na maprotect from estate tax, just in case of untimely demise, but capital appreciation pa rin ang hanap, mag VUL ka, if your too conservative to loose a portion of what you earned, edi mag bonds ka, TD, or another instrument is whole life insurances.

Mas magiging may katuturan kasi ang pagpaplano kung sa simula pa lang alam mo na kung ano ang objective at kung para saan ang pera mo. 

Tama...