All about life Insurance

[KITHE ORTIZ]

I haven't gotten insurance yet pero I'm really leaning towards getting term insurance and investing the difference in mutual funds or equity funds. I figured, oo wala ako makukuha in case I don't die before 65 years old or so, but by then I've already invested so much in my MFs or equity funds (much much more ang makukuha ko if I do it myself kesa I bundle it with a VUL package offered by an insurance company) that I wouldn't need the cash payout of the term insurance. I was really all set with going for sunlife's vul but when I found out the charges (I asked ha, at kung hindi ko pa tinanong hindi pa sakin sasabihin ng agent ko. Hay) ang daming surcharge! I'm essentially paying them astronomical fees to do something na technically ako naman dapat talaga gumagawa.

And yes, tumataas ang premiums for term. But it's minimal and the idea is that I've accumulated enough money in my own separate investments so that I can pay for the premiums of my term insurance. And sana naman by the time I'm 65, nabawasan na my need to protect my beneficiaries. Also, I figured, eh kung sa kotse nga ok lang na may binabayarang insurance kahit walang balik, sa buhay ko pa kaya.

Lastly, I'm thinking my greatest but most difficult economic years are in the 5, 10,15 years ahead of me. Eto yung time na plano ko magasawa, magka anak, magpaaral, etc. Hindi ko yata kakayanin magbayad ng sankaterbang premiums just yet. Also I need to be liquid kasi nga I foresee na sobrang daming babayaran. If I go VUL, I will be tempted to just borrow money from myself (which defeats the purpose of getting a plan that's geared towards a long term horizon naman talaga). So, for my long term needs, maybe I'll get a separate plan nalang.

Term insurance is a good plan for the purpose of protection, it has cheaper premium but the premium changes everytime you get older, but it has age limitation, only up to age 70.

If your age is 20s to 30s, premium escalation is minimal but as you get older, mas malaki na rin..

Disadvantage of Term insurance is if you forget to pay your premium, it is easy to lapse...
There is a tendency that if you happen to lapse the policy, it require a reinstatement, its okay if you are healthy, it can be reinstated and will be approved..
But what if you have illness then, by the time you reinstate the policy, it may not be approve and worst is you die, there is nothing for your dependents to get..

And what if you become toally disabled, your investment also stop, with whole life or VUL that has waiver of premium benefit, even if you become totally disabled, you will not pay any premium, the company will take care of them and you can get something for your disablement if it has disbility benefit..

Some cliens get whole life and they add term insurance for additional coverage because its cheaper..

VUL is okay, because you are insured even after you finished paying for the same amount every year... The fund can take care of the premium of your insurance.. While your fund is invested..

Insurance is not only for your dependents, it is for your self also..
If you live too long, there is available funds for your self, if you quit, you get your fund or cash surrender value, if you die, your beneficiary will get the insurance coverage plus the funds available..

Don't limit your self to term insurance, get whole life also or VUL.. For your long term needs..

[redraincoat]

^For my long term needs, I plan to invest in equity funds or balanced funds. Instead of paying so many fees and super large premiums sa VUL, I'll invest the difference nalang sa equity funds, MFs, and aggressive UITFs for my long term investment horizon. Wala nga akong cash payout sa term, but by then my investments naman have grown so large na over time so in case I get sick or disabled, then I'll still have money to cover my needs and that of my beneficiaries.

Maybe if I have extra money I'll go get myself a VUL sa Sunlife. For now kasi parang hindi ko sya nakikita na swak sa needs and sa situation ko.

[AkiFoblesia]

eto naman perspective ko sa BTID vs. VUL. next time na traditional whole life

on premiums: mas mahal ang sa vul, obviously kasi dun mo na din nilagay pondo mo for investment

on charges: rough estimates lang mga ito
- around 88% to 93% ng investment mo mapupunta sa charges sa vul sa first year. around 60% to 63% sa 2nd year. 37% sa 3rd, 20% sa 4th and 5th, then lower pa onwards

- sa term naman, mababa lang, tumataas kada taon, at mas malaki ang increase as you age

- sino ang may mas malaking charges: sa year 1 to year 3, mas malaki ang charges sa vul. year 4 onwards, mas malaki na ang binabayaran mo sa term kaysa vul. overall, mas mahal ang term kung 10 years or more ka na nagbabayad

on risks and flexibility of making choices:

VUL: ang flexibility na offer nito ay kung saan ilalagay ang pera mo: balanced, equity o bond. di mo mapipili kung saan particular stock ilalagay ni manager yung pera mo. kung kaya mong makatulog ng mahimbing, sa riskier ka (equity), etc.

BTID: mas flexible dahil yung portion mo for investment, mas madami kang pagpipilian: mf, stocks, etc. mapipili mo kung saan stock mo ilalagay, kung sa business ba, etc

on either side, high rewards, high risk. mas madami lang choices for BTID.

on why people take one or the other:

- masyadong mahal ang charges sa VUL: not really - see first 2nd point above
- i want flexibility kung saan ko iinvest pera ko kaya BTID prefer ko - valid point
- wala kong panahon maghanap ng ibang investment kaya VUL - not valid; applicable yan para sa BTID at VUL, kasi sa BTID pwede mo din naman ilagay sa MF pera mo. hulog ka lang, wala ka nang iisipin
- we need less of insurance as we get older
--- kanya kanya na to
--- kung BTID ka, pwede ka na tumigil sa pagkuha ng insurance pag matanda na dahil siguro wala ka na masyadong gastusin para sa anak mo, bayad na bahay mo, etc.
--- pero sa vul naman, pwede mo rin sabihin pagtanda mo: kunin ko na yung investments ko dahil malaki na din ang kinita, pero magtitira ako ng konti para tuloy pa din ang protection; maaaring hindi na ito kailangan ng beneficiaries ko, pero pag namatay naman ako, mas malaki pa din ang maipapabaon ko sa kanila - sayang din yung death benefit

[panggo]

Have you worked with insurances before? i know lots of people industry who are part time just like people in the real estate industry

is this something that I can do as a part time job?

i want to get 1 for myself and in the process i want to learn it as well
and i already have a target market

[panggo]

the great thing about mutual funds is that there are a lot of options for different goals depending on your time frame.. bonds are for short term goals, equity funds are for more long term ones!

[panggo]

what term insurance do you have?

[paulomark]

Hi im 39 years of age and i just avail a VUL. Is it advisable for me to have this plan. thanks and GOD bless all!

[AkiFoblesia]

^hi po

per objective of vul, pwede mo pa din makuha benefits nun - protection for your beneficiaries at growth of your investment in the long run. pero hindi ibig sabihin nito advisable na yun para sa yo, kasi maaring may better option pa depende sa madaming factors:

- magkano ang kaya mong invest
- magkano ang gusto mong protection
- financial standing mo ngayon (e.g. magkano na ang emergency fund mo, may existing life insurance ka na ba)
- status ng kalusugan mo
- gastusin mo (e.g. kung may pinapaaral ka, breadwinner ka ba)
- kelan mo kelangan kuhain yung investment mo

bottomline, bukod sa edad mo, kelangan din ng advisor mo yung objectives at health & financial standing mo para magdetermine o magcompute ang kelangan mong protection at dapat mong invest.

[paulomark]

I just invest the minimum which is 10 percent of my income. I'm single and not a breadwinner and i don't have any health ailments. No existing insurance. Hope you can give me more advise. Thanks

[redraincoat]

Sirs and maams, may nagooffer naman sakin ngayon. Insular Life I-Assure. Whole life insurance, 10 years to pay, mga 18k, coverage ay 1 million. Ok kaya yun? May sinasabi syang cash value pero di ko gano naintindihan. What are your thoughts naman po on whole life insurance? Sabi nya better daw yun ng term, kasi premiums start small nga pero pataas ng pataas. Tsaka til age 65 ka lang nun. Pag whole life, til 99 covered ka. Ano kay mas ok, whole life or VUL?

[sagoatgulaman]

any feedback on Insular Life? parang mas mura premiums nya compared sa iba.

[KuyaDanny]

Insular Life is an old and respected name in the local life insurance industry. What makes it different is that it is a mutual insurance company, meaning it has no stockholders and is "owned" by its policyholders. Some or most of the "profits" it generates are "returned" to the policyholders in the form of dividends which can be used to reduce the amount of your premiums.

"Mas mura" is a little difficult to prove because life insurance coverage has many terms, conditions, and limitations which make policies difficult to compare against each other. One company may offer P1,000,000 of coverage for P1,500.00 a year while another can quote you the same coverage for P1,650.00 but the second company might have superior coverage because it has fewer exclusions.

[redraincoat]

Guys, may alam po ba kayong level term insurance with option to convert to whole life? The term insurance plans I get are not level, nagiincrease talaga yearly. Is there such a plan na 10 years or 20 years hindi tumataas ang term premiums? Thank you guys!

[mxherr5]

cocolife,insular and philam..you can opt to have a 20 year level term insurance
i'm sure meron rin silang ibang variants.

i know for a fact na may level term up to age 65 ang insular at philam

[KuyaDanny]

Guys, may alam po ba kayong level term insurance with option to convert to whole life?

Term policies are generally convertible to whole life, as long as you convert before the term coverage expires. However, before buying check to see - the premiums for the whole life policy will be based on your age at the time you convert, not your age today. Will you be saving money that way?

It might be more appropriate to buy a whole life policy now and in the future, if you feel you don't need it, surrender it for cash value or have it converted to reduced paid-up.

[poohkyaw]

ang life insurance po ba, nag mamature pag 65 yrs old ka na?
kailan po ba mkaka kuha ng returns ang life insurance vul?

[KITHE ORTIZ]

Hi im 39 years of age and i just avail a VUL. Is it advisable for me to have this plan. thanks and GOD bless all!

Yes, you are insured and may savings ka pa.. continue mo lang ang payment mo, basta every due date pay ka ng premium mo, di mo mapapansin may naiipon ka na, pwede mo magamit ang fund pandagdag sa retirement mo..

[KITHE ORTIZ]

ang life insurance po ba, nag mamature pag 65 yrs old ka na?
kailan po ba mkaka kuha ng returns ang life insurance vul?

3 lang ang maturity ng life insurance;
1. death, your beneficiary will get the insurance benefit.
2. early maturity, if the living benefit is equal to the face amount, pwede mo na isurrender and plan mo, pwede mas maaga or pwede 65 y/o, depende sa plan na nakuha mo.
3. sa whole life ang maturity age ay age 100, sa VUL ay age 88 (sunlife).. di ko lang alam sa ibang insurance company..

Depende sa VUL plan, at sa payment terms, the shorter you pay the higher the premium, the higher of chances to accumulate faster..
sa VUL kasi flexible, kung nakabayad ka na let's say 10 years, pwede na may kita ka, depende sa fund allocation mo.
Pero pwede ka naman mag partial withdrawal, if you needed the money..

[poohkyaw]

3 lang ang maturity ng life insurance;
1. death, your beneficiary will get the insurance benefit.
2. early maturity, if the living benefit is equal to the face amount, pwede mo na isurrender and plan mo, pwede mas maaga or pwede 65 y/o, depende sa plan na nakuha mo.
3. sa whole life ang maturity age ay age 100, sa VUL ay age 88 (sunlife).. di ko lang alam sa ibang insurance company..

Depende sa VUL plan, at sa payment terms, the shorter you pay the higher the premium, the higher of chances to accumulate faster..
sa VUL kasi flexible, kung nakabayad ka na let's say 10 years, pwede na may kita ka, depende sa fund allocation mo.
Pero pwede ka naman mag partial withdrawal, if you needed the money..

Salamat ng marami sa pag sagot. Actually, ang nakuha kong life insurance eh sa SunLife nun 2007. Honestly, di ko na matandaan ang mga sinabi saken ng agent. Although, constantly naman ako ngla login sa site ng sunlife to check my insurance kung updated ang payment ko. Prang nasabi kasi saken nun agent na in due time, makaka kuha na ako ng returns. di ko alam kung tama yun pg kaka alala ko or mali lang dinig ko dati. hehe

[KITHE ORTIZ]

Salamat ng marami sa pag sagot. Actually, ang nakuha kong life insurance eh sa SunLife nun 2007. Honestly, di ko na matandaan ang mga sinabi saken ng agent. Although, constantly naman ako ngla login sa site ng sunlife to check my insurance kung updated ang payment ko. Prang nasabi kasi saken nun agent na in due time, makaka kuha na ako ng returns. di ko alam kung tama yun pg kaka alala ko or mali lang dinig ko dati. hehe

Wala ka na bba communication sa agent mo?

May return talaga pero makikita mo lang yun kung mas malaki ang fund value mo kaysa nahulog mo, pang long term kasi ang VUL, and depende kung talagang nagbabayad ka every due date, nababawasan kasi yung units mo monthly for the insurance charge.