Traditional life insurance vs VUL

[sachism]

May lola is 90+ years old na at malakas pa

[freelancer_babe]

^parang mas maganda ang whole life vs vul...? Sa ngayon ba, may nabubuhay pa up to 88yrs? Paano Kung kukuha ako ng vul then tumagal pa ako ng 89yrs...?

Juan Ponce Enrile or "Manong Johnny" just turned 88 this V-day.

[mameejhy]

Oh wow! I should get 1 whole life & 1 vul for my husband, then! Lol

On hindsight, my Lolo died when he was around 85yrs...

[leelou]

^ lola (paternal) ko rin 92 years old na. sumasama pa sa amin sa enchanted kingdom i have a lolo din, mother side naman, 80 years old and malakas pa rin. nagjo-jogging pa every morning at nakakapagsibak pa ng kahoy  hoping we'll reach their age as well! yun ganun edad na pero malakas pa rin

[sachism]

Oh wow! I should get 1 whole life & 1 vul for my husband, then! Lol

On hindsight, my Lolo died when he was around 85yrs...

I think magkaiba ang age coverage namin sa Sun at  Pru. Nalimutan ko lang. I have to check our plans.

Interesting thougt sis! hehe

[singidsnoel]

Regular pay VULs are whole life policies. Most policies cover until age 100. Since it can be fully withdrawn anytime, it also works as an endowment.

The common reason to have an insurance policy at ages later than 85 is for either estate protection or late age medical care. When you reach this age, it is already prudent to start the succession of your assets to your descendants. You can start enjoying the proceeds of your matured policy for paying fees in transferring your estate, late age medical care, or spend it any way you like.

[sachism]

nabasa ko sa Sunlife hanggang 88 nga lang so kung nabuhay ka lagpas 88 ang ibabalik lang sayo ang yung fund value mo. wala na sa insured amount.

sa prulife nnaman hanggang 100 yo, pero ganun din.

wala pala akong plan na magbibigay pa din ng sum assured pag nabuhay ka lagpas sa maturity date. parang lugi sila doon kasi mamatay ka or mabuhay ka, magbabayad sila. hehe

[swit_squiggle]

Kasi sis kahit forward payment ang ginagawa sa VUL, charges increase yearly, by age 70-100 naku ang laki na ng binabayaran mong premium nyan sa insurance charge alone, although hindi mo pansin dahil nga sa lumaki na din ang fund amount.

[singidsnoel]

The insurance charge associated with late age insurance is minimized if your VUL is DB2. Kung lampas na ang fund value sa face amount, corridor nalang ang usually may insurance charge. Corridor is typically equivalent to one annual premium.

Pwede mo tingnan ang DB1 as investment na may Term Rider. Ang DB2 naman ay whole life / permanent na kita mo ang components.

Di malulugi ang insurance company with VULs cause ang pinaka-revenue is ang management fee ng fund. Di mo na to ma-feel dahil ang NAVPU ay net of management fees na. Aside dito, add mo pa ang insurance charges.

Ang difference lang sa VUL at Traditional ay ang pag-guarantee ng returns. Lugi ang insurance company sa Traditional kapag ang guaranteed na amount ay mas malaki pa kesa kikitain ng investments na pinaglalagyan ng premiums na binayaran mo. Pero, ang guaranteed part din naman ay di kasinlaki ang tubo compared sa potential na tubo ng VUL.

At the end of the day, ang mantra na "Higher risk equals higher returns" parin ang masusunod.

[pie12]

hi i got a Sun Flexilink 85 basic here are the details:
Face Amount   :   PS 500,000.00
Issue Date   :    March 26, 2012
Amount of Premium   :   PS 5,000.00
Regularly Billed Excess Premium   :   PS 500.00
Mode of Payment   :   SEMI-ANNUAL


Fund Value as of Issue Date   :   PS 773.02
Fund Value as of July 20, 2012   :    PS 635.90
Cash Surrender Value as of July 20, 2012   :   PS 635.90
Effective Date   Activity Type   Total Premium Received   Net Amount   Transfer Charges
June 26, 2012    Administration charge    (PS 52.08)    (PS 52.08)    PS 0.00
May 26, 2012    Administration charge    (PS 52.08)    (PS 52.08)    PS 0.00
April 26, 2012    Administration charge    (PS 52.08)    (PS 52.08)    PS 0.00
March 26, 2012    Administration charge    (PS 52.08)    (PS 52.08)    PS 0.00
March 26, 2012    Deposit    PS 5,500.00    PS 825.00    PS 4,675.00

there are a lot of figures here that i dont understand. pls enlighten me regarding the computations stated above.

[manang02]

sa mga merong VUL questions po:

1.) me effect ba sa fund value kung quarterly ang payment ng premium vs pag annual?
2.) pag 0 na fund value ng VUL, ma-lalapse ba yung insurance?
3.) Tama ba itong equation ko? premium - charges (premium, periodic, insurance charges,etc) = amount to be invested
4. Pwede din mag "top-up" dun sa investment portion?

TIA!

[swit_squiggle]

sa mga merong VUL questions po:

1.) me effect ba sa fund value kung quarterly ang payment ng premium vs pag annual?

Paying on a quarterly basis you are buying different NAVPS thus affecting kung magkano ang nabibili mong value ng asset consequently affecting your fund value

2.) pag 0 na fund value ng VUL, ma-lalapse ba yung insurance?

Innate in a VUL ang insurance charge, so, kung 0 na ang fund value talagang maglalapse ang iyong policy.

3.) Tama ba itong equation ko? premium - charges (premium, periodic, insurance charges,etc) = amount to be invested

Minus all the charges, what is left ay napupunta sa investment.

4. Pwede din mag "top-up" dun sa investment portion?

after paying the annual premium anything na sobra ay nagiging top-up. pero kahit top up meron pa rin yung one time charge depending on the company which ranges from 2-5% premium charge.

HTH

[mxherr5]

@pie, what do you need explanation on?

If you're just asking about the figures,
they seem pretty self explanatory.

@manang,

everything swit said is correct but we can
expound on #3 further.

Amount to be Invested = Premium - Premium Charge
Fund Value = Fund Value + Amount to be Invested

Every monthsary

Fund Value = Fund Value - (Periodic Charge +
Insurance Charge)

[mameejhy]

@swit_squiggle - Anong advantage/disadvantage ng quarterly vs semi annual payment? Ang iniisip ko mas mura premium kapag semi annual pero may chance na mababa ang navps kapag quarterly.   

Thanks!

[swit_squiggle]

POV ko lang po ito mameejhy ha.

Advantage of paying semiannually is that you're money is invested earlier therefore time essence you are buying lower NAVPU, mas marami ang nabibili mo, mas malaki ang tsansa na lalaki ang fund value mo, the same advantage could also be your disadvantage if the trend is pababa naman, could be na nabili mo sya at a higher rate. e di kabaligtaran naman ang nangyari. With quarterly payment naman, naprapractice mo ang pag cocost average. Volatile kasi ang VUL's unless you chose Bonds. hehe. We only hope for potential gain and a better Philippine economy. hehe. But in the long haul, tataas lang yan ng tataas. . The key? Give it time.

mura premium kapag semi annual pero may chance na mababa ang navps kapag quarterly.

Actually mameejhy, either you pay semi annual or quarterly the same lang ang premium nila. Hindi sya katulad sa traditional insurance na nagkakaroon ng premium difference if you divide the payment.

Personal experience ko lang ito, after buying VUL's for me and hub. I don't follow the traditional quarterly or semi-annually payment. after my first quarter payment, I do it monthly or anytime na meron kaming extra money, thus parang nag cocost average ang labas, so I purchase different NAVPU. iba-iba sya. But one thing that I have observed. Mas mababa ang NAVPU na nabili ko when I had my first payment. I bought it at 2.6--- at ngayon nasa 3.1--- na ang per share.

1 year pa lang naman kami nagstastart sa VUL ni hub. so I have more personal observations pa sa future. theory pa lang lahat na natutunan ko, iba kasi pag ikaw mismo ang nakakaexperience. hehe

[mameejhy]

^Hmm so ganito example, kukuha ako ng semi annual payment after a year pwede ng quarterly payment?

Iniisip ko kasi semi annual para mura ang premium eh pareho lang pala hahaha

[Venessapaula]

Hi!Can anybody help me?  I have an AXA Honey in 2006.  I chose the easy 5 year. Actually di naiexplain sa akin ito kasi pinagbigyan ko lang ang agent ko kasi ang kulit.  After 5 years, I thought I should stop paying na but an agent frient (si original agent ko nagdisappear na parang bula with some collections  unremitted daw) told me naextend daw ng another 5 years ang payment.  When I called up Axa, ang sabi, continous daw akong magbabayad.  I have two AXA agents na close friends na top earners, they even went to the US and China for trainings, but di rin nag eexplain sa akin.  Orphan account daw ako and if they service me, lugi sila, walang commission. duh.  What I want to know is, since variable life insurance ang honey, may portion ito na ininvest, right?  If  tama ako and may investment portion ito, can I claim my returns ba or something? Nakakainis lang kasi I emailed AXA and wala namang sagot.  Yung 2 friends ko ang sagot lang "check ko ang value" tapos wala nang further follow uo.

[swit_squiggle]

@mameejhy: first quarter payment lang naman ang required, then you can opt to do it daily, monthly or any payment date you want, no matter kung magkano ang halaga ng premium mo basta not less than 1000 lang. Huwag naman ezero ang fund value bago magdecide na magbayad. hehe. That's with VUL's mga sissies ha. OOoops..this is with Sunlife ha. My VUL provider, I don't know with other insurance companies.

@venessapaula: magpasuyo ka na lang sa dalawa mong friend sis na eexplain sa iyo. after all, hindi naman commission base ang friendship nyo siguro. A good financial advisor will always put the interest of other people on top whether they are a client, a friend, or a stranger before his/her personal interest.

Since the company requires you to pay for additional premium, I assume na the charges will eat your fund value so di malayong, maglalapse sya if you don't do the payment.

[manang02]

Paying on a quarterly basis you are buying different NAVPS thus affecting kung magkano ang nabibili mong value ng asset consequently affecting your fund value

OK sis, so pwede ko pala i-apply ang peso cost averaging pag quarterly ang payment.

@manang,

everything swit said is correct but we can
expound on #3 further.

Amount to be Invested = Premium - Premium Charge
Fund Value = Fund Value + Amount to be Invested

Every monthsary

Fund Value = Fund Value - (Periodic Charge +
Insurance Charge)

Bale po monthly ang pagkuha ng charges? Irregardless of your payment mode?
I'm actually referring to Sunlife VULs.
Thanks sis! 

[mxherr5]

@swit, actually as per my agent when I first got
this VUL, it can even be as low as 1 petot lol

I normally pay only 500 per week to take advantage
of my BDO Rewards Points

@ manang, yup exactly. Periodic and Insurance
charges are deduct monthly by cancelling the appropriate
units from your fund.

The only charges that apply at the time of payment/investment
is premium charges and top up charges if any