Traditional life insurance vs VUL

[pinkcoyote]

I'm 31 / F / non-smoker/ married with 1 child..

whats the best insurance for me kaya? i want the one that gives endowment after 10yrs for my son's schooling.

thanks in advance

My daughter's insurance in Sunlife gives endowment at the 4th year and every 2 years thereafter, 6% of the face amount we don't withdraw the endowment kasi pang-college nya din yun

[mameejhy]

^ok ba ang endowment? Hindi ba parang bata pa naman sya para magka life insurance? I mean, wala naman syang dependents...

[freelancer_babe]

^ Not only that.

I have few reasons why I am against getting any life insurances for kids.
1) They do not earn any income. Primary purpose of a life insurance policy is income replacement of breadwinner.
2) These kids could pay for their life insurances themselves when they get older. Some jobs even provide life insurances that are paid by their employers.

I don't buy the argument that kids must have life insurances while they are younger and while premiums are cheaper. Sila (the kids) na dapat ang gumastos ng life insurance policies nila when they become breadwinners themselves, not us parents. Dagdag na gastusin lang kasi. I'd better put that money on their dreams, education and those co-curricular activities that they want on the side.

[mameejhy]

^tama! Except na lang siguro kung artista o models sila na may income hehe 

[freelancer_babe]

^ Yes, that's one good reason to get them life insurances. But I still think na kahit child stars sila, it can be optional unless the parent had given up his/her job for the kid.

[aisteru1028]

I am 28 F, single, birthday is oct. 28, 1983. What life insurance is best for me, vul or traditional? Baka may ma-irerecommned kayo agent na masipag mag-explain at mabait, yun talagang ipapaliwanag lahat lahat bago ko mag-avail, mas maganda kung malapit sa marikina, taga marikina kasi ako.

gusto ko po kasi malinawan sa product na ito ng sunlife, ito kasi ang mga product na umaagaw sa atensyon ko, gusto ko lang maintindihan, at kung posible po sana Accidental Death, Dismemberment and Disability ang rider:

Sun SmartStarter 8
Sun Flexilink
Sun Maxilink Prime

Btw, kaya lang ng budget ko a monthis 1k-1.5k.

[kriztina]

^ Yes, that's one good reason to get them life insurances. But I still think na kahit child stars sila, it can be optional unless the parent had given up his/her job for the kid.

Inputs lang kung sino yun dapat na iinsure. If you're getting life insurance to cover for your child's educational fund, it is best na ang ilagay nyo insured is yung parents usually un breadwinner. In case anything happens to the breadwinner and hindi pa naka accumulate ng enough fund, the death benefit can serve as funding for child's eductaion.
Reason why some people insure their small children is just to cover for final expenses (hospital, funeral etc.). Mabigat din kase financially para sa family un final expenses pag nawalan tayo ng kahit sinong family members. Ganun din for housewives/househusbands. That way, the only reason for the family's mourning is just the loss of a loved one and not the financial burden cause by their loss.
Yung iba, iniinsure yun child kung ang main reason is just for savings. Mas mura kase un insurance cost pag ang insured ay bata. Compared kase sa bank mas better un growth potential ng money especially with VUL.

[freelancer_babe]

Many people tend to forget that the life insurance should be huge enough to cover income loss, estate taxes, and this includes children's education. This should also cover those "last expenses" as well, pero pwede rin naman na manggaling sa emergency fund (financially-wise, this should already be established before getting that life insurance).

It doesn't make much sense kasi kung insured na ang parent, and then insured pa ang kid... you could have put the money into other investments. If a parent feels inadequate na ang insurance nya, he/she could just get another, or just put more sa mutual fund ng existing VUL insurance nya.

The chances also of having losing life at a younger age is much lesser than those ones who are adults. It's always the insurance company who's winning at this one. But of course there are a few cases where loss of life and limb do happen.

Yung reasons rin for saving for the kid - while it's true that bank accounts don't earn much interest, you could have opened an mutual fund account na lang instead of a VUL in that insurance company. Pwedeng ITF ang arrangement since that is for the kid. Magastos ang VUL - you pay the insurance + investment fees while in a mutual fund, investment fees lang ang binabayaran.

[mameejhy]

^Yeah, yun iba they have more than 3 life insurances (between couple) to cover for the insufficient savings/ retirement/ educ plan/ life insurance. Ako gusto ko may tig 1 kami ni hubby na life insurance with vul at health plan like insular's I-heal.

[cherubin]

sisses,is this a good proposal
sun-smarter plus - non smoker
face amount: 1,000,000
annual premium 49,760
living benefit ridet/accidental death/dismemberment/and disablement benefit
totsl disability benefit (waiver of premium): 1,000,000

[swit_squiggle]

sun smart starter plus is an endowment plan with growing dividends and cash values. Its a lifetime payment with an option to stop paying sis once ang policy mo ay nakaipon na ng enough fund pra mag self pay ang plan. Be sure lang na gusto mo ang long paying plan or find other option, marami ka namang pagpipilian, 

[cherubin]

sis, sabi ng agent i can stop paying if i want,say i reach age 51,pwede na daw ako mag stop
then i can get the total living benefit that correspond to that age/year.

[swit_squiggle]

@ cherubin, so meron kang plan estop ang pagbabayad? ano ba sis ang target mo at gusto mo kumuha ng ganyang plan?

@mameejhy and freelancer_babe, tama kayo sis. sole purpose ng insurances is for protection of a valuable person at hindi lamang ang breadwinner. Insurances can also be a gift, an inheritance, a payment for tax, pang-augment sa business, pang vacation at marami pang iba. whatever the purpose and reason behind getting such policy, kanya-kanya yan, huwag lang sanang parang bebeng bulag na kukuha na lang basta basta.

Hindi ako against getting insurance for a child, dahil kung marami naman akong pera, bakit hindi ko kukunan ang aking hehe. kaso, hindi ko priority yan. Kung ako man ay matanda na at maraming naipon at ari-arian, bakit hindi ko kunan ang apo ko? its my inheritance for her/him at sa magiging apo nya kung humaba man ang buhay nya. It's my legacy. So over all, we can't question the person buying it, as long well-informed siya.

[freelancer_babe]

... huwag lang sanang parang bebeng bulag na kukuha na lang basta basta.

Unfortunately, marami ang bulag na kumukuha ng insurance. Kasi makukulit rin naman kasi ang ibang agents - desperado ba to sell? And yes, they could come up with a lot of reasons to get insurance to be able to sell.

Hindi ako against getting insurance for a child, dahil kung marami naman akong pera, bakit hindi ko kukunan ang aking hehe. kaso, hindi ko priority yan. Kung ako man ay matanda na at maraming naipon at ari-arian, bakit hindi ko kunan ang apo ko? its my inheritance for her/him at sa magiging apo nya kung humaba man ang buhay nya. It's my legacy. So over all, we can't question the person buying it, as long well-informed siya.

If we are not to question, then discussions via this forum would be nothing. I think it's healthier to bring out issues in the open (without personally attacking the person) rather than keeping one's thoughts to oneself. That's what forums are for.

To me, outrightly an insurance for a child is just a waste of money at panalo lang dito ang life insurance companies because they are collecting money over long term. A lot of financial advisors had mentioned this along with other types of insurance that are plainly unnecessary.

Inheritance? I have other assets naman na pwede kong ipamana; I'd rather buy a house or a lot, or just invest the money in a business na pwede kong ipamana and even those high-yielding stocks and mutual funds. Mas gusto ko pa rin matuto ang bata on how she could earn her own money and grow her own richer, rather than relying on a life insurance that I've setup for her when time comes.

[swit_squiggle]

marami na akong naencounter na agents na ganyan..sobrang kulit. hindi ako ganyan ka persistent unlike others, but I learned my lesson the hard way. Pero sis alam nyo ba, it pays sometimes na maging kulit. true story ito ha, it happened to me?

I have a neighbor, and told him that I'm connected with this company now. If he wants to get a policy just tell me. He said, hindi ko kailangan yan, gusto ko ng health insurance (referring to HMO). yun ang kukunin ko. I left without explaining the importance of it. (Kasi the idea of death, ayaw naman talagang pag-usapan ng karamihan, hindi din ako mapilit. Kung ayaw edi huwag.) After 3 weeks, he died of a heart attack at a tender age of 36. I cried because I lost a friend and more than that, I cried because hindi ko natulungan ang mag-ina sa panahong mas kailangan nila ng malaking pera pambayad sa utang at mga expenses gawa ng pagkamatay ng haligi ng tahanan. siguro? Kung naging makulit ako, i helped in such a way.

[freelancer_babe]

^ Yup, it pays nga rin to be makulit. Tactic ito doon sa dati kong work - it pays to follow up on things. Else people will think you are not interested anymore in your request.

That's a sad story of a friend of yours, sorry to hear about it. A life insurance policy might have been a better option for him than the HMO the way things turned out. But who could have predicted his death due to a heart attack? Kahit yung friend mo mismo hindi nya nakita yun. He was interested on an HMO because alam nya na he has problems with his health.

Pero sayang, sana pala kumuhan na siya ng life insurance policy na rin nya. It could really have paid a lot of things after his death. It's just sad reality na maraming mga working class people ang wala, and very few companies are offering this benefit. Pwede na rin ang HMO benefit pero that's just not enough and not all companies are offering it (that includes my previous employers).

[mameejhy]

Inheritance? I have other assets naman na pwede kong ipamana; I'd rather buy a house or a lot, or just invest the money in a business na pwede kong ipamana and even those high-yielding stocks and mutual funds. Mas gusto ko pa rin matuto ang bata on how she could earn her own money and grow her own richer, rather than relying on a life insurance that I've setup for her when time comes.

Ako rin - gusto ko house & lot or business na pamana ko para matuto sila magsipag/ magtyaga mag work! Lumaki ako sa "business environment", alam ko paano makipag usap sa customers, employees at suppliers, kaya gusto ko ganun rin mga kids ko. OFW ako ngayon (not by choice; pinasunod lang ako ni hubby sa kanya) pero lagi ko sinasabihan kids ko na magbusiness sila paglaki para sila ang manager hehe OT na but my point is - gusto ko matuto sila tumayo sa sarili nilang mga paa.

After 3 weeks, he died of a heart attack at a tender age of 36. I cried because I lost a friend and more than that, I cried because hindi ko natulungan ang mag-ina sa panahong mas kailangan nila ng malaking pera pambayad sa utang at mga expenses gawa ng pagkamatay ng haligi ng tahanan.

Nakakalungkot naman to... 36yrs old na rin si hubby this year Wala pa syang life insurance kasi inuna namin ang educational plan (PhilamLife) ng eldest namin. Pero, matatapos na yun bayaran sa July kaya kukuha na kami ng life insurance (at Healthplan na hindi HMO)

Pero sayang, sana pala kumuhan na siya ng life insurance policy na rin nya. It could really have paid a lot of things after his death. It's just sad reality na maraming mga working class people ang wala, and very few companies are offering this benefit. Pwede na rin ang HMO benefit pero that's just not enough and not all companies are offering it (that includes my previous employers).

I think, they got afraid because of the pre-need/education plans' companies (CAP, etc)...

[freelancer_babe]

^ Yun nga lang life insurance is a lot different from those pre-need. Mas safe pa rin ang life insurance than any pre-need.

But, damay ang mga life insurance companies pag may bumagsak na pre-need. Like that of Prudential Plans. Damay tuloy ang Prudential Life Insurance na ok pa naman. Even other insurance companies are also affected; nagkakaroon ng negative stigma.

Much like some people would choose not to keep their money with any bank anymore because of those bank runs. In reality rural banks lang naman ang affected. Keeping money in stable banks are still pretty much safe.

[cherubin]

@swit_squiggle i wanna get insurance primarily because i wanna have something when i grow old at the same time if ever i die unexpectedly hindi na rin mahihirapan family ko sa expenses tapos may maiiwan pa sa kanila,but if i live up to the golden years atleast i have money from the insurance.

btw sis thanks for the insight,because of that i asked the agent if there are still other plan available
and i was offered sun safe 20- non smoker.any advice? tia

[swit_squiggle]

Risk averse ka ba sis? may idea ka about mutual funds or UITF's? ask your agent for VUL plans, mamaximize mo ang returns at insurance coverage and at the same time its a flexible plan. May mga times na hard-up ka, hindi ka pipiliting magbayad, kapag nakaluwag, you can add more.

Uhmm..start building your retirement fund sis by investing in MF's as a start. You can open as low as 5000 pesos and each month (anytime na makaluwag) you may or may not add top-up of not less than 1000. 

Until Feb 29 na lang sis ang offering ng Sun Safe20. Kasi a new and better product is out in the market. endowment product sya, may kamahalan parang elite plan sya, kasi most clients who get this are the chinese and the affluent. In the 20th year, lahat ng earnings ng policy ay balik lahat sa owner incase walang may mangyari which means, after the 20th year, wala ka ng insurance unless you opt to change it into a whole life plan.