Traditional life insurance vs VUL

[fionaapple]

^ Thank you.

[m_lim]

sa mga pro Term insurance, ano gamit niyo for critical illness?

i'm convinced na pangit ang VUL dahil napakaraming charges.

worried lang ako paano kung kinabukasan, ma diagnosed ka ng critical illness, eh hindi pa lumalaki value ng UITF/ mutual fund/ stocks mo. so paano na? health card? paano kung cancer? usually 150t-200thou lang covered ng health card. kulang na kulang.

[D4thAngel]

sa mga pro Term insurance, ano gamit niyo for critical illness?

i'm convinced na pangit ang VUL dahil napakaraming charges.

worried lang ako paano kung kinabukasan, ma diagnosed ka ng critical illness, eh hindi pa lumalaki value ng UITF/ mutual fund/ stocks mo. so paano na? health card? paano kung cancer? usually 150t-200thou lang covered ng health card. kulang na kulang.

Sis, may mga insurance companies nago-offer ng critical illness plan na hindi VUL, it's like a standalone health plan, hindi sya dependent sa performance ng stock market, mas malaki ang coverage compared sa HMO.

[PetiksPinayInvestor]

sa mga pro Term insurance, ano gamit niyo for critical illness?

i'm convinced na pangit ang VUL dahil napakaraming charges.

worried lang ako paano kung kinabukasan, ma diagnosed ka ng critical illness, eh hindi pa lumalaki value ng UITF/ mutual fund/ stocks mo. so paano na? health card? paano kung cancer? usually 150t-200thou lang covered ng health card. kulang na kulang.

This is what I know: Sun Life Assure

Traditional insurance product siya na ang main benefit is pang critical illness. Pag na-claim mo na ang CIB, mag terminate na rin ang insurance. Kung nauna naman ang death, the beneficiaries will get the coverage.

The coverage is also equal to the CIB coverage.

Binabayaran ito as long as buhay.

Example in figures:

2M coverage on critical illness or life
with riders (TDB, ADB=2M)
30 yr old Female non-smoker

Annual premium starts at 19,080.00

Premium increases every 5 years. By age 55 ang annual premium na niya is 40,800.00 but that is 25 years from now. Hindi na rin ganun kalaki ang halaga ng 40,800.00 at that time due to inflation.

List of critical illnesses covered:

Critical Illnesses
1. Heart Attack
2. Stroke
3. Cancer
4. Kidney Failure
5. Dissecting Aortic Aneurysm
6. End Stage Lung Disease
7. Progressive Muscular Atrophy
8. Major Burns
9. Multiple Sclerosis
10. Paralysis
11. Total Blindness
12. Loss of Limbs
13. Aplastic Anaemia
14. Bacterial Meningitis
15. Benign Brain Tumour
16. Deafness
17. Encephalitis
18. Amyotrophic Lateral Sclerosis (ALS)
19. Progressive Bulbar Palsy (PBP)
20. Meningeal Tuberculosis
21. Cerebral Metastasis
22. Loss of Speech
23. Coma
24. Parkinson’s Disease
25. Terminal Illness
26. Medullary Cystic Disease
27. Alzheimer’s Disease
28. Fulminant Hepatitis
29. Major Head Trauma
30. End Stage Liver Failure
31. Motor Neurone Disease
32. Guillain-Barre Syndrome

Critical Illnesses Requiring Surgery
33. Major Organ Transplant
34. Coronary Artery Bypass Surgery
35. Surgery for Disease of the Aorta (Aortic Surgery)
36. Replacement of Heart Valve

So far ang mga products na may healthcare coverage ay pang critical illness lang:
- Life Assure for traditional
- Flexilink for VUL

May balita na by Q3 or Q4 this year, mag add pa ang Sun Life ng insurance products na pang healthcare. Inaabangan ko ito actually ang next insurance na kukunin ko ay yung pang healthcare coverage. May 3 active life insurance na kasi ako as of date.

[m_lim]

ganito yung sinasabi kong comparison between BTID and VUL.

bakit lumalabas dito, mas mura katagalan ang VUL??

http://www.thewiseliving.com/2014/05/btid-vul-but-term-invest-difference-vul.html


tingnan niyo sa 20 year protection:

sa VUL=P188,236
sa Term=251,850

so lumalabas na mas mura ang VUL sa insurance part. then yung difference nila, kung same investment ang paglalagyan, edi lalabas winner si VUL?

[mxherr5]

@m_lim, I didn't read through the whole article but if you're just looking
at the absolute peso value then you're doing it wrong.

You have to take into account the time value of your money.

VULs are front loaded, meaning the bulk of the charges are incurred
during the first year. Those monies should have already been earning
but are used for insurance instead. This definitely affects the final fund
value.

I tried to assume a yearly investment of 46k and at the end of 10 years
assuming a 10% return the BTID would have earned around 370k
whereas the VUL would have earned 344k. Go ahead and plot it out in a
spreadsheet and see for yourself.

Note, that I had taken out a VUL for myself as when I was shopping for one.
Sunlife's VUL at age 65 beat any of the BTID I tested it against at age 65.

[m_lim]

^thanks for that bro!

lalo ako na curious.. so, magpapa quote ako ng term VS. vul sa age ko ngayon.

sa figures mo above, between 370thou and 344thou, lalabas ang difference na 26thou eh ang kapalit niya ang insurance mo with VUL, tama ba?

pahabol: pano mo na compare yung Sunlife VUL? ibig sabihin ba yung ibang VUL's, hindi nila ma-beat ang BTID?

thanks in advance!

[D4thAngel]

I would suggest that when you shop for a VUL insurance, say 10-years payable VUL, try to ask how much goes to the insurance premium alone and how much will be invested in the market. There are insurance companies that would invest a higher portion of your premium as early as its first year, thereby giving you a potentially higher yield when the market is already doing good at the time you availed the VUL.

[m_lim]

eto ang hinahanap kong table of comparison:

http://2.bp.blogspot.com/-mlPJfzmcqYE/VH1MpeMb3VI/AAAAAAAADd4/RlYtZCGzc2E/s1600/BTID%2BVS%2B%2BVUL%2BCHART.png

[mxherr5]

sa figures mo above, between 370thou and 344thou, lalabas ang difference na 26thou eh ang kapalit niya ang insurance mo with VUL, tama ba?

- can you rephrase that? I didn't get it. It appeared that you were saying the BTID does not
have an insurance component.

Yes, but I had to rely on their illustration which for some reason does not have a standard
way of doing the computation. Based on their illustration, they couldn't match the fund values
at age 65 if I did BTID.

And another reason was that Sunlife was the only one who has no problems disclosing their COI
tables

Nice table, what was the VUL used?

[m_lim]

dito ko siya nakita:

http://www.moneyandopportunity.net/2014/12/insurance-vul-or-buy-term-invest.html?m=1


so totoo ba yung sinabi diyan na cheaper lang ang BTID kung less than 20years mo lang gusto ng insurance? if more than that, then mas ok ang VUL?


btw, ang ganda pala ng Single Pay Vul. bagay sa retiree.

kasi kung may 10M ka at ipapasok mo sa Single Pay VUL, 2.5M (25%) insurance mo (less coverage na need natin pag matanda na)

then kung gusto mo naman ipamana, sayo parin habang buhay ka. makuha lang ng mga papamanahan mo pag dead ka na. minimal fees pa ito.

disadvantage lang kailangan malaking pera agad meron ka. so perfect pag retired ka na at madami ka ng pang pasok.

[PetiksPinayInvestor]

btw, ang ganda pala ng Single Pay Vul. bagay sa retiree.

kasi kung may 10M ka at ipapasok mo sa Single Pay VUL, 2.5M (25%) insurance mo (less coverage na need natin pag matanda na)

then kung gusto mo naman ipamana, sayo parin habang buhay ka. makuha lang ng mga papamanahan mo pag dead ka na. minimal fees pa ito.

disadvantage lang kailangan malaking pera agad meron ka. so perfect pag retired ka na at madami ka ng pang pasok.

OK ang Single Pay VUL pang estate planning and succession.

Because at this point in time, the person has accumulated wealth na and retired na rin siya. Wealth preservation and succession na lang ang mga concerns niya siguro

Magandang timing na ayusin na ito para hindi na maging cause ng away in the future ng mga heirs. Or at least wala na magiging major problem when the time comes.

Ganun din naman, lahat tayo dadaan sa ganito and nobody can escape estate taxes while you're in Pinas, hehe

Tax reduction, pwede. Pero Tax evasion, criminal case po yun.

[Annnnnna]

In the end, VUL and Term Insurances will give your beneficiary/s a GUARANTEED amount.
Since VUL has an investment component, it is tax-free as long as the beneficiaries are irrevocable while other high-yielding investment instruments are subject to tax.
If the account owner dies, the family needs to secure clearance before they can access the investment/assets through paying the estate tax.

[ycel0612]

^ I agree with you

Worth considering ang VUL if you don't want your loved ones to go through the hassle of redeeming your investments and settling your estate in case you died.

[j.adore]

This is where estate planning comes in. The hassle will always be present as long as the deceased has other properties, investments, etc. It does help since the beneficiaries will have more cash to proceed with processes but VUL is not the answer to do away with it.

Siguro kung eto lang ang asset, then definitely VUL is better.

[ikaela]

Recently had to do estate planning and now in the process of settling estate taxes. I realize that although life insurance is nice to have, it isn't really necessary. What's important is that your family has some place to get cold hard cash from to pay off the taxes on your estate. This could be in the form of cash disbursed in accounts under their names. Of course, this entails a certain level of trust among family members, but if you can't trust your own family, you have a bigger problem than estate taxes.

[toria]

Hi girls,

I'm planning to get a life insurance but is very confused which one to get at this point.
Initially, I only wanted to get an insurance which can cover critical illness.

Which insurance do you advise for me to get if let say I have this covered:
1. Estimate payment for estate tax has been saved
2. We have memorial lot/plan
3. We have HMO for medical needs
4. Emergency fund
5. Educational funds for the kids are kept in mutual funds
6. Retirement funds are kept in stocks/mutual funds/cash savings

My parents and my future in laws are discouraging us to get an insurance.

My parents does not have insurance and we are all done with schooling.
They also have properties, retirement funds and memorial plans already.

As for my in laws, she told us that she paid for a life insurance in the span of 15yrs and was only able to get 40% of the total money she have spent.
Her advise is to save and invest instead of getting an insurance.

Your thoughts? Thanks in advance!

[mxherr5]

toria, it looks like you got everything covered.

You should get yourself a term insurance with disability
and critical illness riders.

The insurance should be enough to pay for your kid's education
unless your educational funds are already big enough to pay
for your children's education?

Critical illness and disability insurance for when major
illnesses strike or a major accident happens and you survive.

Too bad for your MIL. I don't know the details behind her
policy but she might have pre-terminated her policy. As you
may or may not know, insurance policies are front loaded meaning
you barely see any returns during the first few years as most
of the charges occur on the first years.

Term is cheap anyway. I got it for less than 2k a year with
1M coverage.

[caterpillar-girl]

We got term insurance and now we're planning to get VUL. I was against VUL, but then we found ourselves using money we intended to put in separate investments, for various things, none of which I can actually remember now. I think for some minor repairs and purchases. Plain old human nature working against us. So we're thinking of VUL, parang forced savings. Our friends who got VUL said they got it for the same exact reason, and knowing full well that you get more bang for the buck when you just put it in separate investments. 

[ayieloveszavi]

i am so interested in this!

i am 32, i got yung variable life sa Manulife.
my face amount is 4M plus 4M din na ECIR.

i pay 6,8++ monthly. okay ba ito?

my main concern is retirement. i specifically told my agent na sana by 42 pwede na ako magtravel ng bongga. hahaha!

super baguhan ako, wala pa ako masyadong alam sa investment kaya nagbabasa basa pa lang but super lito ako sa terms.

anyways, may 200k din ako na nistart na iinvest sa manulife din. antagal na nun sa passbook account ng anak ko, wala naman nangyayari so naisip ko invest ko na lang.

mas maganda ba sa 200k magtop up or may top up din ang variable life ko?