Lahat Hinggil sa VUL (Variable Universal Life Insurance)

ProvidentiaProvidentia Sun Life Advisor PExer
Can you have partial withdrawals with VULs (Sun Maxilink, Insular WealthSecure)?
«13456717

Comments

  • summit012summit012 Member PEx Influencer ⭐⭐⭐
    have u heard of this? can anybody explain this?
  • KuyaDannyKuyaDanny Moderator PEx Moderator
    Essentially, a form of life insurance where the amount of benefits is not predefined but could fluctuate (up or down) depending on the performance of the insurer's investments.
  • summit012summit012 Member PEx Influencer ⭐⭐⭐
    where can one get this kind of plan? is this better than those "mainstream" plans?
  • KuyaDannyKuyaDanny Moderator PEx Moderator
    I don't know if any variable plans are written locally. You might have to find a multinational insurer who can sell you a policy written abroad.
  • jaeganjaegan Member PExer
    kuya danny

    need ur advise re insurance

    is a yearly premium of php 15,887 payable in 5 years OK for a php125,000/- life insurance?

    i'm on my 2nd year now and can i get a lower premium next time?

    thanks
  • danica00danica00 Member PExer
    Anybody here invested in a VUL policy? Is this a good investment? What are the best plans to get? Any tips on maximizing the investment?
  • metropolitanmetropolitan the truth hurts, does it? PEx Influencer ⭐⭐⭐
    How much do you know about VULs? If you don't know much, I suggest you do some research on the internet first.
  • danica00danica00 Member PExer
    How much do you know about VULs? If you don't know much, I suggest you do some research on the internet first.

    I'm starting to know quite a bit and continously researching about different investment vehicles. I know that there are premium charges and about the risk compared to traditional insurance. However I do think this is the best initial investment for me since I currently do not have an insurance policy and I also want to start learning about investing with mutual funds, stocks and the like. It's less risky than investing purely on mutual funds, stocks or bonds since I'm also getting the added benefit of an insurance policy. Just wanna know about others' first hand experiences with their plans :)
  • lush89lush89 Member PExer
    danica00 wrote: »
    I'm starting to know quite a bit and continously researching about different investment vehicles. I know that there are premium charges and about the risk compared to traditional insurance. However I do think this is the best initial investment for me since I currently do not have an insurance policy and I also want to start learning about investing with mutual funds, stocks and the like. It's less risky than investing purely on mutual funds, stocks or bonds since I'm also getting the added benefit of an insurance policy. Just wanna know about others' first hand experiences with their plans :)

    I have a few VULs. My principle is before I add another life insurance policy, I segregate the purpose as to whether it's for protection or for investment. If I'm after protection, I get the basic whole life policy because the premium is way cheaper than those endowment or VUL plans. If it's for investment, I take into consideration that usually, the earnings are not guaranteed & are lesser than other financial investments because a portion of the premium has to pay for the life insurance cost. For VULs, I also consider when I need the money because like right now that markets are down, the surrender cash value could be negative.
  • mxherr5mxherr5 Member PEx Rookie ⭐
    I have Sunlife's Flexilink.
    So far, I don't have any regrets.. the only bad thing
    I could see about VULs in general are the monthly charges
    that are taken out of the "fund"

    See, instead of just taking paper losses during bear markets
    nagiging realized loss sya because of the charges.. :(
  • nussnuss GAU PR PEx Veteran ⭐⭐
    Philamlife's AIG Asset Builder has no premium charges whatsoever. Which means that almost all of what you pay gets invested already.

    Here's a summary... http://www.philamlife.com/Products/Savings.html

    But if you want to be technical about it, the AIG Asset Builder is only considered to be variable life and not VUL.
  • metropolitanmetropolitan the truth hurts, does it? PEx Influencer ⭐⭐⭐
    nuss wrote: »
    Philamlife's AIG Asset Builder has no premium charges whatsoever. Which means that almost all of what you pay gets invested already.

    Here's a summary... http://www.philamlife.com/Products/Savings.html

    But if you want to be technical about it, the AIG Asset Builder is only considered to be variable life and not VUL.

    So does that mean that the insurance agent does not earn a commission at all? Kindly enlighten me.
  • danica00danica00 Member PExer
    Just invested in Sunlife Flexilink, hopefully this works out well for me :) VULs are not for everyone. If you can afford getting a separate life insurance and mutual fund investment, that could work also work well (with less charges). But I think for those who'd like to be covered now with limited funds to invest in both at the same time, I think VUL is a good option. Yup there are insurance charges but at least even if the market is down (along with your VUL unit prices), you're still insured. And since life insurance is a long term proposition,
    I think it may force otherwise skittish investors to wait for an upward vcycle instead of panicking and getting out of the plan at the first sign of a downturn.
  • danica00danica00 Member PExer
    nuss wrote: »
    Philamlife's AIG Asset Builder has no premium charges whatsoever. Which means that almost all of what you pay gets invested already.

    Here's a summary... http://www.philamlife.com/Products/Savings.html

    But if you want to be technical about it, the AIG Asset Builder is only considered to be variable life and not VUL.

    What's the main difference between a VUL and a variable life plan?
  • nussnuss GAU PR PEx Veteran ⭐⭐
    metropolitan... the insurance agent gets a commission but not from the premium per se. Philamlife is willing enough to shoulder the commission to be paid to the agent.

    danica00... there's a vague difference but not much. VUL, especially with the products offered in the United States, have much more complicated terms.
  • rmelendresrmelendres the entrepreneur guy PExer
    hi there guys..

    There are 2 types of VUL products kasi 1.) Single Pay or One-time payment. 2.) yung regular payment lets say 5 or 10yrs.

    Before kasi insurance alone lang ang uso dito satin but now because of the emerging market needs nagkaron ng VUL (Variable Unit Linked)
    2-in-1 package. May insurance ka na, may investment ka pa.

    the first thing that you should ask yourself is willing ka ba na mag invest and wait for a very long period of time? If yes then VUL is the right thing for you.. BUT if you intend na after few years eh bawiin na *** investment mo eh siguradong talo ka..

    keep this in mind: "for money to grow, you need to put time"
  • rmelendresrmelendres the entrepreneur guy PExer
    nuss.. evry insurance agents has a commission per sale. Philam agents also gets commissions kasi hindi lang nakikita included na kasi sa computations. in other insurance, for them to be eligible for a commision they need to hit certain targets first. kapag hindi nila na hit yun ang tawag daw dun "thank you" for the company.
  • rmelendresrmelendres the entrepreneur guy PExer
    lets talk charges:

    some companies have one-time charge, some yearly charges.

    with AXA Phils. i think one-time charge lang sila sa single pay. sa regular pay, 1st yr -100% goes to insurance. 2nd and 3rd yr-50% goes to insurance. afterwhich lahat na is for the investment part. take note: no charges for withdrawal. iba kasi meron eh.
  • The best VUL really depends on your needs and investment capacity.
    So the best way is to look comparatively. "Window shopping" ka muna dapat.

    From what I know, the top three companies offering VULs are the following:

    Philam
    SunLife
    AXA

    There are also different configurations of VUL.
    - For some, like AXA as the post above mentioned, there's the option of single pay or regular pay. Meron din 'to sa Philam. I'm not too sure about SunLife. In any case, I would almost always suggest a regular pay option. Why? Because you benefit from dollar (or peso) cost averaging. It won't matter if the market is up or down. You tend to win 66% of the time. Talo ka sa single pay kasi tali ang number of shares mo sa panahon na nag avail ka.

    - There are companies that separate the insurance premium from the invested amount. In SunLife, I think they split, then would ask you to tap up. In AXA, it was explained above. In Philam, as nuss mentioned, 100% is invested then the insurance is based on the amount invested. So if you want a big insurance, then get from those that has independent insurance premium in their policy. Kung investment, dun ka sa malaki ang investment component.

    - How long would you keep your money invested? Kung short-term, kuha ka ng walang withdrawal charge (pero mataas ang magiging premium mo nun, I think). Kung long term, kuha ka kahit may withdrawal charge. In any case, VUL is for long-term, especially for estate planning.

    - Speaking of estate planning, that's one thing you should consider when getting a VUL. What estate planning is, is a different discussion.

    - Some of the companies I mentioned above offer "guaranteed principal" in your investment. Personally, I would get that type of plan. Anong catch? Usually offered in a very limited time only. So kung nagkataong wala kang pera pag nag offer sila, wala kang magagawa.


    I hope that helps. :)
  • danica00danica00 Member PExer
    ^^ Thanks for the info :)

Leave a Comment

BoldItalicStrikethroughOrdered listUnordered list
Emoji
Image
Align leftAlign centerAlign rightToggle HTML viewToggle full pageToggle lights
Drop image/file