VUL FAQS are frequently asked questions about VUL that will surely help you get to know more how VUL works and how it can help you achieve some of your life goals in life.
Here are the other things you need to know more about Sun Life VUL insurance plan.
VUL FAQS Part I. Basic Information
What is VUL?
VUL basically stands for Variable Universal Life. This is a kind of plan that offers insurance and gives you and your family a guaranteed amount in case of unfortunate events. At the same time, it offers a bonus of investment where a portion of your premium payments is invested into funds of your choice.
How does it differ from other insurance plans?
With VUL insurance plan, not only your beneficiaries will enjoy the benefits of it but most of all, it’s you. This is because of the cash values it offers that you can use sometime in the future either for the college fund of your child, for your future business, or your retirement.
How much does it cost?
Premium really varies depending on the client’s age, gender, and smoking habit. Generally, you can start acquiring a VUL plan with as low as P1,000 to P3,000 per month. The higher your premium is, the higher the coverage you can get & cash value you can expect in the future.
What are the charges?
Charges in VUL plans are taken on its first few years. For Sun Life VUL plans, they are:
- Premium charge – cost associated in setting up the policy
- Mortality charge – pertains to the insurance protection
- Monthly periodic charge – regular admin expenses
- Fund management charge – for the management of funds. This is already netted out from the unit prices of each fund
Up to what age am I covered in VUL?
Some VUL plans get you covered until age 88, some until age 100.
Can I also attach a health insurance with VUL?
Yes. We have these so-called ‘riders‘ that you can attach to a VUL plan at an additional cost which also gives you additional coverage. With Sun Life VUL plans, some of the riders you can attach are Critical Illness Benefit and Hospital Income Benefit that already gives you a health insurance coverage.
Will I receive any proof that I have acquired a VUL plan?
Yes. Once your application for VUL insurance plan has been approved, a policy contract will be given to you by your trusted Financial Advisor.
Do you send statements of account?
Yes. You have the option to receive your statement of accounts either via email or a printed copy.
What are the requirements on getting a VUL plan?
With Sun Life, the requirements are filled up application form, signed proposal, one primary ID or two secondary IDs, SSS or TIN number and initial payment.
Why should I get a VUL plan?
Here are my 8 reasons why you should get a VUL plan.
Can I withdraw from the plan?
Yes. Afterall, it’s your money. However, it is not recommended that you do it within the first few years of the plan because of minimal investment returns. Take note that acquiring a VUL plan is a long-term investment.
What happens when I withdraw all the fund value in my VUL plan?
The plan automatically terminates. You can do partial withdrawals to keep the policy inforced.
I’m an OFW who wants to apply for a VUL plan, am I eligible?
Yes, as long as your application will be signed here in the Philippines.
Will I still be covered even if I go out of the country?
VUL FAQS Part II. Investment Know-About
Do I have an option in VUL plan where I can choose which fund I want to invest with?
Yes. To know the different VUL funds you can choose from with Sun Life, click here.
Can I make fund switches?
Yes. In Sun Life, the policy owner can make four fund switches for FREE within a policy year.
Can I allocate my investment in more than one fund?
Yes, you can invest in more than one fund. You can allocate at least 10% to each chosen fund for a total of 100%.
VUL FAQS Part III. Payments
Where can I pay my premiums?
You can pay your premiums either OTC transactions or thru online banking. Just have your policy number with you and a bills payment form when paying over the counter. For more info, click here.
Will I receive notifications that my payment has been reflected?
Yes. While filling up the application form, you have the option to receive notifications like this either via sms, email, or printed copy.
What if I forgot to pay my premium on my due date, what will happen to my VUL plan? Am I subject to penalty charges for late payments?
The plan will not automatically lapse. The system will just deduct your premium due from the investment fund value. Because of this, there are no late fees or penalty charges for late payments. Just make sure to fill in your missed premium payments.
What are the modes of payment available in VUL plan? Can I change them from time to time?
The modes of payment available in VUL plan are monthly (Automatic Debit Arrangement), quarterly, semi-annual or annual. VUL plans offer flexibility when it comes to your payment options that’s why you can change them from time to time.
Can I pay in advance to shorten my paying period?
Yes. Paying your premium in advance gives you higher potential of returns in the investment part of your VUL plan.
Can I pay my VUL plan using a credit card?
Yes, you can pay your VUL plan using a credit card for your initial payment. If you wish to pay your succeeding premiums using a credit card, it is only available on a monthly basis and you need to arrange it as auto-charge payments.
Hope these FAQs minimize your confusion on how VUL plan works. At the end of the day, it is still best for you to meet a trustworthy Financial Advisor (FA) that can address your priorities and goals in life. In that way, your trsuted FA can assess if VUL is the right plan for you.
Want to know your options with a VUL plan?
I’ll reach you out as soon as I can! 🙂
Have a #brighter life!
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.