Ever heard the term VUL?
If you are planning to get a life insurance or investment yet you’re curious if which of which is better and more beneficial? Let me introduce to you this so-called VUL.
VUL basically stands for Variable Unit Linked insurance. It is a combination of insurance and mutual fund which has the main purpose of securing you and your family from financial hardship, making it similar to the regular insurance people get.
What makes it better then? VUL has an additional benefit of having your money get invested into a mutual fund which can make your money grow as months or years go by.
So, what happens if you decide to get you a policy like this? Simply speaking, a portion of your premium or payment is used to pay the life insurance cost and another portion is invested into an investment fund (like a mutual fund).
But the big question here is, where will your money be invested?
It’s up to you!
There are different investment funds that can suit your risk appetite. You can choose from equity fund for aggressive investors, balanced fund for moderate investors, and bond fund for conservative investors. The good thing about investing is that, there is a greater opportunity for your money to earn more and beat bank’s interest rates.
Just keep in mind that when it comes to investing, you are like planting a tree which takes time to grow. You invest long term, and reap fruits more than what you deserve.
Here’s a video presentation from Pesos and Sense that explains what VUL means:
When you prepare ahead, it is actually YOU, being responsible to not only for yourself but for your family as well, because whatever happens, they will not suffer financial hardship.
Getting VUL with the purpose of INCOME PROTECTION wherein you as the family’s INCOME PROVIDER will be confident and secured that this plan can support your family if ever unforeseen and uncertain events take place.
Sun Maxilink Prime is one of our best solutions that we offer to people who are confused whether to get insurance or investment. It is a VUL plan of SunLife that gives you an insurance coverage plus a living benefit that you can use in the future (investment).
How does this VUL plan work?
Let’s take up this scenario:
Mr. Investor decided to get Sun Maxilink Prime at the age of 25 and wants a 1million insurance coverage.
He committed to set aside 30k per year.
That’s only P2,500 per month!
You’ll just have to set aside P1,250 every 15thor 30thday of the month or P84 per day. Not bad, right?
What will you get?
- A life insurance coverage until age 88
- Total Disability Benefit – in case Mr. Investor be totally disabled, can’t get back to work to pay premiums, SunLife will waive it for him and pay for the remaining pay period.
- Accidental Death, Dismemberment and Disablement benefit – in case Mr. Investor died due to accident, his loved ones will receive an additional amount of P500,000. However, in case he only suffered an injury from accident and resulted to the loss of function of any part of his body, he will receive a certain percentage from P500k (depends which part).
- Investment Benefits! After setting aside P30k for 10 years for a total of P300,000, he will already have:
-P300,000 after 10 years: P355,216
-P300,000 after 20 years: P897,801
-P300,000 at age 65: P5,872,961
*Assuming at 10% compounding interest.
- What about health insurance? Nothing to worry because you can add a Critical Illness benefit to the plan that can cover you for 36 Critical Illnesses such as heart attack, stroke, liver failure, lung disease, and others.
Having P5.8million when you retire is not bad because when we stop working, we have nowhere to get income and being able to prepare at an early age for retirement is great step to achieve financial security. This is something that your future self will thank you for.
Imagine? By just saving P84 per day, you get to have this amount that you can use daily upon retirement. You can also use this money for travel expenses or for medical expenses.
If your priority right now is more on educational fund, this is also a good solution especially if you get it as early as the child is born. Why? It is because after 18 years, you can already use the fund value of the plan to fund your kid’s tuition when he/she enters college.
Feeling old to get the plan?
Just like in love, age also doesn’t matter here. What is important is that you START acquiring VUL today. You decide to get insurance and investment TODAY. The only difference is that when you get it while you’re young, it is still cheaper. But again, it is never too late. Just expect it to be a little bit more expensive.
I always tell to my clients, especially those young professionals, that it is really important for them not to have that big regret on getting this plan when they reach 30 years old and burst out, “If only I decided to get this earlier! :/”
Your financial advisor for life,
PS. Looking for a shorter paying period plan? Try our Sun Maxilink Bright!
Christine Caranyagan is a Certified Investment Solicitor (CIS), Associate Wealth Planner (AWP), Estate Planner (AEPP), and Agency Leader of the Philippines (AALP). She’s a 2019-2020 Macaulay Club Awardee, and a 5x Medallion Qualifier as a Licensed Financial Advisor.
Her mission is to help fellow Filipino people achieve lifetime financial security & healthier lives.
If you want to learn more about financial planning, you can contact her thru her personal contact number 0935 7368 619, or send her a message here.