Term Life Insurance

[msals2007]

Sis what policy ang halos same ang premium ng term insurance at VUL. Interested ako. Lahat kasi ng proposal sa akin for VUL ang lalaki ng premium

[ikaela]

I find it painful paying yearly for term insurance too, but when I get updates from our VULs showing all the charges they're deducting, I snap right back. Holy mother -- apart from the 2%-6% p.a. charges deducted every month, they take as much as 90% (!!!!!!) off the top right at the start of the policy. 90%@#$%@!#%!!! We have no choice but to hold it for a reaaallly loooong time in order to get that money back.

For context, the purpose of the VUL I mentioned is for inheritance and estate planning. I still would not recommend a VUL for someone who plainly and simply wants to grow their money.

[bluish_mommy]

^^^ of course nothing is free  ... magkano coverage ng P3k mo? my premium for my TLI was almost P11k, the VUL I got was almost P13k, both annually.

[mxherr5]

3k for 1M of life insurance
9k total for 1M life insurance, 1M comprehensive accident
and disablement coverage, 1M critical illness

My Sunlife VUL is around 20+k for 1M life insurance

What's the features on your TLI?
Is your VUL from Pru? They're the only ones I know of
that have VUL products that go below 20k.

Surely there are differences in the coverage between
your term and VUL?

[bluish_mommy]

^mine includes both life insurance + comprehensive accident + critical illness + disability... so di rin nagkakalayo ang premium ng TLI natin pala..

got my VUL from Sunlife for just 500k coverage... this is an Equity MF... I got this merely for investment, I am not after much for the coverage. I opted for VUL instead,  of course, for Estate Tax protection.

I have a separate life + retirement coverage for 4M, at ito ang ginamit ko for the MRI ng naka-mortgage kong bahay.

honestly I was surprised as well to know that Sunlife can offer that low premium for the VUL. Kung hindi pa ako nagtanong, hindi pa sasabihin na meron palang ganung product. Some agents will not really tell you, kasi syempre the bigger the availed premium of the client, the bigger commission 

by the way, Insular also has a corresponding VUL that has almost the same premium as my Sunlife VUL, I plan to get one for my husband.

[mxherr5]

Ahh so considerably less coverage pala.

Yeah, back when I got my VUL only Prulife
offered ones with premiums of less than 20k.

Either they changed the rules or like you said,
the agents just neglected to tell me about the
lower premiums lol.

[ikaela]

I feel like I should write this, so others are not confused by what bluish_mommy said about the premiums of term insurance and VUL being the same:

The 11k-13k premium mentioned can get you either:

In term insurance:
1M life insurance
1M comprehensive accident and disability coverage
1M critical illness coverage

In a VUL:
500k life insurance
An equity fund investment

At that premium, the insurance coverage is definitely better in the term insurance. If you need the insurance, it's most definitely advised that you get that first. But if you already have coverage and just want a way to grow your money or want to diversify, then get an investment.

[msals2007]

Sa Philam merong proposal sa kin na VUL nasa 16k lang at 1.4M coverage, yun lang lifetime ang bayad ng premium...forgot what age, 79 ata or 80. Im 38 right now. Mas magaan ang premium compared to other VUL products pero for lifetime  ka namang magbabayad. Saka mas malaki ang percentage na napupunta sa insurance coverage compared sa investment.

[mrs]

3k for 1M of life insurance
9k total for 1M life insurance, 1M comprehensive accident
and disablement coverage, 1M critical illness

My Sunlife VUL is around 20+k for 1M life insurance

What's the features on your TLI?
Is your VUL from Pru? They're the only ones I know of
that have VUL products that go below 20k.

Surely there are differences in the coverage between
your term and VUL?

hi sis! san yang term insurance mo? gusto ko din kasi sana kumpleto na may critical illness, comprehensive accident and disablement coverage and hospital benefit if possible

VUL  din inoffer samen ni hubby kaso talagang nabibigatan ako isipin na payable siya up to 88 y/o tsaka ayun na nga gusto ko BTID. newlywed kami so madami pa kami magiging gastos pagdating ng panahon at dami din knoconsider. so purely protection lang gusto ko sana for us. may idea kayo kung how much sa sunlife? philam? manulife?

[j.adore]

Correct me if I'm wrong, di ba VULs usually have you pay for 10 years but after that they get from your fund earnings? So technically, binabayaran pa din as long as the policy is active. Also, if your fund performance is not that good, you will end up paying pa din to sustain the policy.

16k also becomes peanuts when you age (cost of insurance gets higher for older persons then you have inflation).

BTW, is it Philam or BPI-Philam? Parang ganyan din ang proposal sa akin. Seems affordable but the fees stated in the fine print are just too much.

[msals2007]

Mine is Philam Family Secure. Up to age 80 pala yung payment ng premium. So assuming i'll be fortunate enough to live more than 80 yrs old, 42 yrs pala akong maghuhulog ng premium. Dun sa iba na example ten years to pay meron ngang clause dun na it is not the guaranteed paying period. One may be required to pay even after ten years if the value of the fund is not enough to cover the insurance. Tinanong ko nga yun sa agent ko what's the possibility na mag zero yung fund value para kelangan ko pang magbayad uli or mangutang sa policy ko to pay the premium, very extreme cases naman daw yun nagbigay siya ng example like war, nuclear radiation, mga ganun scenario.

Ang gusto ko naman sa proposal nila magaan sa bulsa. As compared to the usual proposal sa akin  na 45k to 50k annual premium same coverage pero 10 years to pay lang, mas kakayanin ko yung 16k annual premium. Never mind na matagal akong magbabayad. Ang importante I'm insured as long as nababayaran ko yung premium ko. In 20 years time that my dependents can support themselves already, pwede ko na lang bawasan yung part ng insurance, lakihan yung investment, later on iwithdraw ko or iterminate yung policy if talagang kakailanganin.

Not yet decided as of now. Pero kumuha muna ko ng term insurance para covered na agad. Might get the family secure also kung kakayanin ng budget.

[m_lim]

mxherr5, anong age mo nakuha ang VUL mo sa Sunlife?

1M coverage rin kasi yung isang plan ko pero 30t+ annually. 26 ako that time.

[marssie]

^same question for Mxherr, mine is 30K/annum for 500FA sa Sunlife, was 32 then..

[bluish_mommy]

Either they changed the rules or like you said,
the agents just neglected to tell me about the
lower premiums lol.

i didn't know that as well, yung agent ko laging ang tanong lang "magkano ang kaya mong i-save monthly?" then from there magco-compute sya magkano kalalabasan ng coverage ko, then yun ang binibigay nyang proposal sa akin.

then the next time na  bumalik sya sa akin (after few years), sabi ko kanya gusto ko kumuha ng VUL, pero sabi ko may extra akong P1k monthly, pero gusto ko kumita with protection din syempre... ayun nag-come up sya VUL with P12,4++ annual premium.

kaya next time na may lalapit sa inyo na agent, ganito gawin nyong strategy haha

[anjcam]

mxherr5, anong age mo nakuha ang VUL mo sa Sunlife?

1M coverage rin kasi yung isang plan ko pero 30t+ annually. 26 ako that time.

Saan ka kumuha? sa sunlife, at age 25, around 21k annually, may VUL ka na. So maliit lang difference for 26. thats without any rider sis.

[m_lim]

^ Sunlife. may mga riders kasi yung akin kaya siguro umabot ng 30t

[mxherr5]

@ mrs,

Manulife. I was very particular about disability coverage
and the other offers couldn't match Manulife's on that
aspect kaya I ended up with Manulife.

If I remember correctly, Insular was cheaper but the clauses
on their critical illness and accident and disability insurance
wasn't good enough for me. Things might have changed now.

I know they recently changed their critical illness rider.



@ m_lim and marssie, I was 21 at that time. Yeah, its probably
the riders kasi as far as I know, hundreds lang ang dagdag sa age.

[moohlan]

Hi mga sis. I'm interested in getting critical illness stand alone insurance. Ano pong alam nyo pinaka ok? Parang okay yung Manulife Critical Care and BPI Philam Life Protect health but no idea pa po about their annual premium. Meron po ba ditong naka avail na ng plans na ito?

[j.adore]

Do you mean life extreme protect? It's affordable but seems to have so much charges in the fine print.

[ikaela]

I had myself quoted before for term critical illness insurance from Sun Life (the Life Assure product) and BPI-Philam (the Life Protect Health). Although not exact, I adjusted the figures so the comparison is equal. Both products give you the face amount upon diagnosis of critical illness or upon death, whichever is first. This is for a 31-year-old female, non-smoker:

Sun Life Life Assure:
-Plain term insurance with level premium for 5 years, then increases again
-500k critical illness/death insurance
-P4,195 annual premium for 1st 5 years, then P4,685 the next 5 years

BPI-Philam Life Protect Health:
-Gives back 50% of premiums paid if no claims within the 10-year coverage
-500k critical illness/death insurance
-P13,507.94 annual premium

Again, since this is the term insurance thread, I'm going to give figures if you invest the difference instead of giving it to an insurance company.

If you get the plain term insurance instead of the one with cash back, then invest the difference (P9,312.94 per year for the first 5 years, then P8,822.94 the next 5)  in let's say Philequity Fund with a 10-year average historical return of 18% per year, you would end up with P284,774.01 after 10 years. That's already nearly 60% of the 500k insurance coverage you bought in the first place. It's self-insurance money for a personal health fund that won't disappear/expire with a 10-year-contract.

If you get the one with cash back, sure, you'll get half of what you paid, but its value would also be halved due to inflation pegged at 3-4% per year. The extra P67,539.70 you would've paid and would get back would only be worth around P20k+ after 10 years.

So which one do you want, the one where you "throw away money" for term insurance then end up with 284k, or the one where it's "not tapon pera" and you "get cash back" but its value is P20k?