In less than a month, nakuha na ng family nya lahat ng death benefits in all of those companies plus fund value kung magkano na tinubo ng money nya. And you already have an equity fund, so you are investing.
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Insurance charge to pay for the insurance coverage. Term insurances I guess also have premium charges they still have to pay agents commissions after all , but maybe it is not as large as in VULs, especially because for term insurances, there is a definite number of payment terms ex.
In VULs however, it depends on the person. They have what they call premium holiday, so you need to pay for at least 10 years. Afterwards you have an option not to pay anymore, or pay as long as they want. Admin charge is something unique for VULs. I checked my VUL insurance, and it states that it is the fee of the insurance company for "coodinating" with the mutual fund companies. Hopefully an insurance agent reading your blog can correct me if I am wrong.
Insurance charge is something common for both VUL and term. I do not agree with some people saying that: VULs also have similar insurance charges. For 20 year term insurances, the insurance charge is just averaged down.
Lastly, fund management charge is common for both UITF and mutual funds. I think the only advantage of VUL is for estate planning. I know you have already mentioned that you get a term insurance to pay for that, and that's correct.
However, if you accumulated a lot of assets, it is great to have a portion of them as insurance so you can lower the estate tax more. Also with VULs, you can get "self-insured" progressively. You start with 30K premium annually, with a K insurance coverage since you don't need much insurance coverage yet 2.
After 10 years, investment grew to K. Your insurance need shoots up to P1million. You can ask for an increase of insurance coverage to K. After 20 years, investment grew to P2million. Your insurance need is also P2million.
Another option is to get a term insurance, let's say for 10 years, invest the difference, and reassess your insurance need after 10 years.
If the person wants to get a VUL, I suggest he invest as long as possible so that premium charges can be averaged down. So for example the person got a VUL from age If he pays until age 60 or for 38 years it average to 4.
Other mutual funds have the sales load on the same range. For example, Philequity has a 3. By the way, I do not want to exaggerate about estate planning and estate taxes. There are ways to lower the estate. For example, education funds, hobbies and vacations, etc. Then again, if the person plans well financially they can accumulate a lot. This is especially true for those working abroad, for entrepreneurs, or are just really good investors.
So it pays to be prepared and do estate planning early on. Again, VUL is not the only option, but I think is convenient for some. If the person does not foresee their estate going as much let's be realistic, some people have low salaries or have multiple children or relatives to assist and will have bigger financial responsibilities, therefore will eat up on their estate.
They say that insurance charge is lower for VULs than term over time. I am not sure of their credibility, but they did post the proposals they created as proof. Of course, their are other charges to consider especially the premium charges , but like I said earlier, as you pay longer, you are averaging down. Also, with the option to lower your insurance coverage as your VUL investment grows, you can also save on the insurance charge.
Hi Carlos, Just want to comment on the following: Think about it how else can stocks generate income in a pooled fund?
Even if it has dividends, they are re-invested. However, it is not really as high as others may think. To continue enjoying the insurance coverage of the VUL, you will need to pay for the insurance charge. The insurance charge depends on the insurance coverage and are deducted monthly. I requested a quotation for Insularlife, for example, for a P1.
Insurance charge is P90 per month or P1, per year. Of course, the cost is painful especially in the first 3 to 5 years, with the premium charges. However afterwards, the only monthly charges deducted to you is the insurance charge P90 per month , and admin charge P per month. Hi Sir Carlos, Thank you for the informative post. I have a VUL from Manulife. I would like to ask if you know if such policy can be converted to an investment plan solely?
Hi Anonymous, Thanks for dropping by. I would not know for sure. But I'm relatively sure that isn't possible. However, it doesn't hurt to ask. If the choice is VUL or a savings account Well, it's better to have an investment than none at all Hello Carlos, Thanks for all your post and being a good adviser.
Can you share as well how to have account in COL? I'm assuming you're an OFW? If so, you can check out Burn's guide to opening a COL account: Sorry for not giving an "original" detailed answer, I just thought you'd appreciate a quick response more. If you have further questions or need any other help, don;t hesitate to contact me.
Hello Carlos, Good morning.. I already download all the application form and now I already started to reading how to start in stocks thru COL. Again thank you and have a wonderful day ahead.
Without any knowledge for the sake of "makaipon" i enrolled myself serves as my retirement money. Now i'm investing an annual premium of k php. They have a projectile amount for 15 years i'll be accumulating 2. Is that value good enough? I'm planning to extend it up to 25 years or should i withdraw it after 10 years of maturity and invest in mutual fund or at COL financial peso cost averaging method?
Please help I'm confused i want to have a high return and less risk. Hi Anonymous, There's a lot to tackle in your questions, so let's take them one at a time: You're a seaman, so you definitely don't have a lot of time or access to things. What you need is a pooled fund - something you can invest in and be assured that a professional is handling it for you. That includes uitfs, mutual funds, and VULs. Your goal was to save. Congrats, you are saving!
You want high returns. Unfortunately very few know what those large future returns are for. Some assume large amounts of money are all they need. But that is mostly wrong. Sit down, maybe even close your eyes, if there's no threat of falling asleep , and just envision the future you want.
Just keep imagining your future. What are you going to do in that house? What does it look like? What's the car for, where are you going in that? Keep imagining and questioning every detail until you figure out what you really want for your future, until it practically looks like the real thing. Then list them down. There might be a million things, that's ok. You can prioritize them according to importance or urgency later. Invest for your goals. Keep learning and evaluating.
Invest in something that you know, have deemed to be safe, and has the potential returns that could meet your goals. You want less risk. There are two sides to this. One; high returns usually necessitates taking high risks. But you can negate that. In your case, investing in a pooled fund VUL should be enough - it's diversified, and I'm assuming you are investing long-term. Two; you can take steps to pro-actively protect yourself. The biggest risk to your dreams is if something happens to your ability to earn.
Part of the answer is life insurance if you're leaving people behind. But the other answers are taking care of your health and having an emergency fund. That way you can keep earning and not have to withdraw your investment prematurely a big risk in investing. Only you can really answer that.
Do step 3 above. If you have 2. If not, how close is it? Will you be happy in that future? No one gets everything that they want. So it's ok to leave some of those for later, or even drop the more frivolous ones. Just be sure the really important ones are considered. Obviously I'm biased against VULs. And obviously insurance salesmen are biased in favor of VULs. But fortunately you can decide this one for yourself. Will the returns in your VUL be sufficient to achieve your goals?
If yes, then stay. If not, start looking for something else. Some unsolicited, but hopefully helpful thoughts to consider: The investments that give the highest returns are: You have no time for a business and your away at sea, so you can really manage it either. Trading forex and stocks will take experience built over time. As well as require that you at least focus on them for a bit while trading. You can buy real estate and re-sell it or have it rented out. However, there's considerable cost taxes, upkeep, keeping squatters out, etc.
If you have a large capital, you can take this on. You'll need patience though as it can sometimes take a while before you can sell. You may also need help if you are going to rent out a property. In your case the best option for high returns really is a pooled fund invested in stocks. You already have one You're VUL is invested in equities, right? So the toughest part is over. Just keep earning and investing; maybe even get a sideline if there's a good opportunity.
And every once in a while every 6 months or one year evaluate your goals and your investments. Thank you very much Carlos for your very fast, informative and detailed answer to my queries. Your a big help for OFW seaman like me who wants to earn but lacks knowledge. I will re-evaluate my goals as you said but im pretty much interested in MF That invest in equity. Which bank do you prefer for me opening MF investment? I want to add a vehicle for the last time hehehe!
When I retire I will collect all my investments and construct an apartment? More knowledge and wisdom God Bless! Hi Anonymous, I agree you should examine if your portfolio i. Typically you want different funds for different goals, but usually just one fund for one goal. What you have those 3 VUL funds is not a bad mix. But your investments should really be "goal-driven". They do have rather big sales loads and fees. But earn well over the long run. I'm also assuming you are interested in Equity Funds in general.
BPI is usually described as mediocre disclosure: I invest in BPI; it's ok but not tell-your-friends-great. PNB I have no experience with but I heard is not that great but to be fair, I'm not sure if my "source" is reliable. UITFs tend to have lower fees but you should ask and compare to make sure.
I did a quick, "spot-check" study the performance of those three were close enough. So I would really recommend choosing the one that: Lastly, an apartment business sounds nice. Location and target market are the primary concerns.
For example, it could be near a "rich" school. In that case a nice-looking, safe apartment with a price point suitable for students would be ideal. But most likely the "if you build it, they will come" strategy won't work. If that is truly your goal, good luck and start researching. There's lots to learn when it comes to real estate and being a landlord. But it can also be very profitable. Good luck and happy investing! I've learned a lot from you Carlos and thanks a lot!
In order to be covered by my insurance I have to continue paying annually so my option are 1. To withdraw all my money and close my VUL after maturity 2. Continue paying my premium annually and be covered by insurance. If you were in my shoes what would be your best choice? Yet, I have learned that I can profit more investing in uitf or mf via equity fund If I continue paying my premiums does my bancassurance agent profit annually to?
One thing is clear for me and that is to invest for long term. Hi Anonymous, Thanks for the kind words. As to your question, it really depends. The "easy" thing to do is ask your financial adviser, if the VUL proceeds can pay for the insurance, since that's their usual sales pitch. Tackling it in more detail though: It would be hard to evaluate this now, since we don't know how much that future term insurance would cost.
Also, I'm not sure if your VUL will have the same cost of insurance as now or rise in cost proportionately with term insurance 2. You've already got it anyway. You could ask for the projected costs you'd have to pay. Approach 1 has the advantage of probably earning more. Assuming both investments are in equity funds, with 1 you aren't selling off shares to pay off your insurance.
That's good because keeping "old" shares and their relatively low price helps maximize your profit. Approach 2 has the advantage of cash flow. Each approach has it's advantage and could be good for you, depending on your goals.
So in 10 years, where do you see yourself? If you're still working, and life is relatively the same, or still have good cashflow regardless of the changes in your life, then approach 1 might be the better deal. So again, it really depends on you and your goals. For your other question: Everyone profits from you.
And aside from the cost of insurance, you'd be paying - even if indirectly - the fund manager handling your VUL's fund. There's always someone in charge of the fund, and they're always paid a fee. Recently, one of my colleagues who is also a new financial advisor of Manulife offered me a VUL. I understand that I am still currently covered by my employer however, since I am nearly graduating I am planning to resign so I can focus on my studies and especially for the bar examination review.
I thought it would be great to be insured for the first 5 yrs of my law career where I might or might not have an employer and at the same time, be able to get an 'additional fund' after such period for a trip to Paris.
Hihi I am not sure if I am making the right decisions but I am fully aware that there are risks. Anyway, since I made the decision to invest in UITF, I already have this mindset that there are risks in everything that we do and that nothing in life is really certain except death perhaps.
But if you have better suggestion for me and my silly plans I'd really appreciate it. I'm so glad to have found this thread. Thank you and God bless! Hi Anonymous, You're young, but you also have dependents. So you do need insurance. Especially if you are going to stop working to focus on your studies; you won't be covered by your employer then. The only part I'm not sure about is you're just getting a VUL, and yet you're "nearly" graduating and hence resigning.
VULs typically have a large premium, which can be hard to pay if you are not employed. A cheaper term would be easier to pay off, however you may still need to set aside a large amount to cover payments fora 5-year period. Insurance is a good step though, and if you've already figured out how to pay it while not employed then both options are good. My premium annually is , payable for 5years. Right now, I ask my financial advisor to change from balance to equity. Assuming na makaka earn ako na mas malaki, nag top up ako nang k yesterday.
Hindi na explain nang advisor to sakin and my mistake is hindi ko binasa ung policy ko dahil Im working abroad. Btw Im 27 years old non smoker. Worth it ba na nag top up ako? Or pwede ko pa siya I pull out then invest ko sa dynamic fund nila. Hope na maka reply ka asap because I deposited the fund yesterday and na stress talaga ako sa charge na 40k.
Hi Anonymous, First off, congrats! Not only are you investing, but you're investing a large amount. So don't stress too much, the hardest part is pretty much done. Your financial should be responsible for explaining everything and making sure you understand. That's why they are termed as "advisers" instead of simply being called agents or salesmen. Unfortunately some do act like mere salesmen. AS long as they get you to sign and get their commissions, it's ok in their books.
Assess careful if you really have an adviser or an agent. Is the top up done and irreversible? After all, a balanced fund also contains stocks, and nowadays contain mostly stocks and only a little bonds.
Maybe you can wait until you're eligible for that? However, if it's done and irreversible, don't fret too much. Was your top up worth it? I think in the end, it will be worth it. Or at the very worst, it won't really matter that much. Personally speaking, I would have advised against investing in a VUL, as I think it's not the optimum solution. But in practice, as long as you're investing, the hardest part is over.
You can monitor and switch to a different investment as you see fit, but you're basically juts fine-tuning. Also I think if you pullout of the VUL entirely, you lose at least part of what you've already paid. In these cases, where you've already gotten the policy, it's usually best to just continue. Let me know if you still have questions.
Hi Carlos, I talked to my advisor just yesterday and she said its not possible to reverse the transaction because they already bought the units. Sunlife allows you to switched 4x a year if I'm not mistaken, I am not sure. She was very sorry that she didn't realize as it was her first time to receive a top up with that amount. But anyway I will just think of the bright side. Sabi ko na lang sa advisor na if ever bumaba per unit eh I email nya ako para makapag invest ako sa MF nila.
Thank you so much Carlo. Hi Anonymous, Glad to hear na nabawasan ang stress mo. Congrats again and thanks for dropping by to let us know what happoened! Hello Carlos, I want to invest in uitf and term insurance my financial adviser in Manulife sent a message by email regarding investing in VUL and it sounds good in the end: I'm not a biased person and i want to hear your insights regarding this matter before my final pick of investment. Below is the email message of my financial adviser Thanks in advance Carlos.
That premium load is not going to the insurance. Now it all depends on your time horizon of investment. Now for long terms investments VUL are better than the other 2 simply because it is tax deferred. These products when regularly topped up leaves every other common investments in the dust.
Anyway, here are my thoughts: It's really funny how your email message is word-for-word a copy of a comment from another site: I'm not sure why MFs were singled out as less risky and gains least. Well, that sounds like an advantage. But are they making good on that advantage? They say it can let the fund grow more over time, so let's just compare the returns over time. I've always heard agents say the VUL is a great long-term investment.
Usually they site the insurance, but this is the first time I read it's because of tax deferment and better gains. It should be relatively easy to check on your part. Ask for the historical returns of their VUL last 10 years or more if possible; the last 5 are big "boom" years for stocks, so everyone will have fantastic data , then just go to http: You can also compare against UITFs by going to their bank's website and looking up the historical returns.
However, since equities typically rely on price appreciation, the strategy of buying in bulk at the start usually fares best when investing in any equity fund. Simply look up the sites I mentioned above and compare with the single-pay VUL.
Those returns are always assuming a lump-sum payment at the start. According to Manulife's data http: Assuming the agent's ideal scenario of going long-term, I'm not sure their single-pay VUL will leave this "least-gaining" MF in the dust. BDO is harder to compare, but the data is here: Knowing which is the "better" investment is up to you.
You should pause and consider carefully your goals and think of the best way to achieve them. I'm not out to discourage everyone from VULs, it' just that agents keep holding it up as the "best" and preying on people's emotions to make sales and get commissions without really educating the public. Your agent may be different, but I wouldn't know. So just carefully consider all factors and decide for yourself. Hello Carlos, I was surprise when i checked the link above no.
And about your reply, very well said Carlos. Now i've done my home works and came to final decision, I will invest in UITF and get insurance from maxi care and philamlife. Correct me if i'm wrong, does it mean i will gain more in BPI because i can buy more units in equity due to its cheaper value?
How about the estate tax? Does it only apply in my capital gains in UITF? How does estate tax affect my investment in uitf? A lots of question from newbie like me: Hi anonymous, Yeah, that copy paste was weird.
Maybe your financial adviser was the one who left the comment about a year ago? Anyways, for your other questions: In general though, what you really want is better returns, regardless of how affordable the current NAVPU is. But strategically, it's advantageous that the units are low so you can buy more.
Because eventually, when the price appreciates you have a bigger "base" to build on. In practice though, when it comes to pooled funds uitf, mf, vul what you really should look out for a re historical returns.
After that, maybe "beta" or "volatility" how wild the swings are. However, that's after the various exemptions read my post on estate taxes here: A VUL is more tax efficient if you die without redeeming the fund.
If you plan on using the investment while alive, there's no efficiency advantage. If you have more questions, feel free to ask anytime. Hello Carlos, Now I have learned with your blog that it is the best to get a term insurance and invest the difference. Can you please advise me which can give more ROI?
Will i join the Bo Sanchez truly rich club and follow his advises on where to buy and sell stock market share or invest monthly in UITF in big banks equity fund? Which is easier and more profitable And thanks a lot now i know VUL is not the best option to invest..
Hi Anonymous, My personal choice, especially if you don't have a lot of knowledge yet or don't have a lot of spare time is to invest in a Mutual Fund of UITF. Their stock recommendations are a subset of COL's stock picks.
Basically, they look at COL's list and then chooses which ones their members invest in. And for that service plus the god whispers email Bro. Bo sends you you pay around per month. COL's picks are free if you are a COL client; and their recommendations are alos usually freely available elsewhere - like my blog: Whether or not the profit you get is worth the 7, expense is totally up to you.
Bu it's not an unfair price if you are new to stock investing and need help. Carlos, ask ko lang if pwede ko ba sila I question about my concern. Kasi pag ka check ko if how much nila binile yung per share nang equity fund ko sa policy ko through their website is 4. Pero pag chineck mo ung daily unit price nang equity nila sep.
Take note, my transfer date is sep 29, Hindi ko alam kung san nila nakuha yung figure na 4. Hi Anonymous, Definitely you should ask them. Pero may possible explanations din: Baka magka-ibang fund yung tinitignan mo at iniivestan ng policy mo? Baka naman yung nakita mong 4. Baka naman sept 29 yung order mo, pero ibang date much later nila na process and complete?
Posibleng "system error" lang yan, and nabili mo talaga ng 4. Baka naman naka "price in" na yung charge sayo? Anyway, better ask them, it's best to know for sure what is happening. Hello Carlos, Very informative blog and indeed a good read for newbie investor like me.. And now after doing my research I prefer to invest in uitf equity funds from a big bank like bdo and bpi. In opening an account for uitf do I need a TIN number? I'm an ofw seaman and I don't a have a tin number because ofw is tax exempted due to our monthly remittance.
And as I read other blogs I noticed that the only way to invest by uitf is by lumpsome and monthly terms.. Correct me if im wrong, if I have an existing uitf investment and option to invest in my own way for example when NAVPU's are low or I have extra money to invest anytime is it possible?
And what will happen to my uitf account with automatic debit arrangement if I don't have a fund in my account if short comings scenario will arrive? Does my uitf investment will be for close?
Sa March pa kasi vacation ko sir Or you could come up with your own hybrid strategy of any or all of those three. You can invest more anytime you want - even after office hours or holidays, though it will be processed the next banking day. You can subscribe to the Regular investment plan or easy investment plan, where an amount you specify is deducted from your savings account and invested in your chosen fund.
If your savings account does not have enough money, the amount will not be deducted form you and your investment just proceeds as normal. However, if you close your savings account, I'm not sure what happens to your investment. Most likely it will just keep going, since that is a trust product, not a deposit product. Though there may be some hassle in starting another account from which to fund your account. I suggest maintain the minimum, to keep things very convenient. You can both setup the account and make transactions online great for OFWs.
The difference is that with BDO, each top-up is a "chunk" and you can redeem only in "chunks". With BPI, you can invest 10k, then 5k. And then redeem any portion assuming you redeem after the holding period; and if I'm correct - as long as it is over 1k. If you have other questions, let me know. If you want short term protection, go for BTID. If you want long term protection, go for VUL.
When we say long term, we mean over 20 years protection. Term insurance premiums increase as we age. For example, premiums for a year renewable term you get at age 21 will change when you turn By then it will be based on 36 y.
After another 15 years, price will be based on 51y. Depending on the insurance company, life insurance coverage for term ends at 60 to 65 so you're on your own after then.
VUL life insurance covers up to age That's yet another example of a sales pitch that preys on people's fears and hardly does anything to educate them. For one, Term Insurance does increase yearly. But VUL is already much, much more expensive than Term. You could pay double, triple, maybe even quadruple of what you would otherwise need to pay. And everyone pushes the need for lifetime coverage as if it was a no-brainer. If by 65, you have no more children to send to school and your house is paid for, there's very little need for protection.
You'd like to pay for your own funeral expenses. But those are stuff your investment can pay for, no need to die just to get money. And you'd also want to provide for your daily needs. Again, that's something you want from your investment.
At that age, what you need is your own business or a large passive-income investment. Insurance doesn't resolve that. Hi Sir Carlos, Your blog is very informative specially to those person like who want's to put some investment. I am OFW and I need your some tips and advice what is best investment for me I am 40 years old already.
My plan is long term,hope you give me some advice and tips. Hi Anonymous, Thanks for the kind words! I agree with your friends that you should get one of the three. To know which one is the right one, you need to set your goals first.
You probably want to get life insurance, if you have dependents. At the same time, build up your emergency fund. I'm not sure how long your overseas contract is, or how much longer you want to work abroad. But being able to come home eventually is also a long-term goal.
You'll need to either setup income streams here, or build up your savings or both. Anyway, even at 40, you've still got a lot of time left; 20 or more years before you retire.
Any of those three can work for you, just take into account the "price" of your goal, and check which investment returns enough for you to meet that price. Hi Anonymous, Unfortunately, the policy most likely be void in this case. I'm not sure what the correct term is, but coverage will probbaly stop and I'm not sure how much if any of your money will be refunded.
It's best to ask your agent. Or even find another pru life agent and ask this as a "hypothetical". Spent my whole day back reading and looking up the terms i encounter. Im a newbie and would like to seek tour guidance as to the current status of my portfolio and plans to invest. I have a laundry business and im already on my 4th policy year of philamlife abundance plus. Its 50k annual,45 goes to equity and 5k to life insurance. Charges from fund mangement are until the 3rd yr only. Is this as bad as the vuls mentioned above?
Im planning to add mf and utif to my portfolio. Will be working abroad in a years time so i am looking options where to put my money. Hoping you can help me. Hi Anonymous, My advice, simply stated: Keep up the good work. You've got a rags-to-slightly-comfortable life story, and you have your own laundry business. And you've got insurance; and since you have one already it doesn't matter much if it's VUL or not. Thanks for back reading, I appreciate the time you spent here. Spent my whole day backreading and looking up terms i encounter.
I am a complete newbie so im begging for a little patience. Hoping you can enlighted me more about my current portfolio,as u did with the others. Here is my profile: I already have a laundry business and already in the 4th policy years of philamlife abundance plus. I pay 50 k annual,45 k goes to investment and 5k goes to life insurance.
Management charges are only up to the 3rd year already past it so im expecting funds to start growing by then. From what i also understand from the policy,will get the life insurance benefit until 65 years old as long as i complete the 10th policy year. Is this is bad as the other vuls from above? Im planning to add mf and utif in my portfolio at the start of the year. Noted down your recommendations.
Will be working abroad in a few months time so im in a hurry to find productive measures to protect and make money grow. If you can recommend classes to attend regsrding mf and utif,please let me know. Thanks and more power. Will refer my friends to this blog!
Hi Anonymous, You look like you're in good shape. Unless your cash flow is tightening up, I wouldn't be worried if I were in your shoes. You can try IMG if you want, as the first two classes are free I'm not a member btw, but I've heard there good info there Thanks for dropping by - and referring friends! Thanks for your very informative post!
I'm in my late 20's, single, no dependents, no plan to have a family of my own but also open to having one. I already have set up my emergency fund and been religiously setting aside money for savings. My goal now is to have at least 2M for my future medical needs which can cover expenses for critical illness as well as hospitalization when HMOs will not cover for this anymore.
What strategy would you recommend? Does this sound like the best plan? Thanks and more power! So yes, I think that's a good strategy. But whether it's the "best" is something only you can decide. But You look like you're in good financial shape, so I wouldn't be worried. Sunlife flexilink vul is okay if it is for medical and life. Just dont be lured on the bpi-philam vul products.
Im saying this base on experience. I really regreted very much and really dont what decision to do. I already have sunlife flexilink. But still I have some money aside from my emergency which I planned to put it to uitf at bpi.
However when I asked the customer service staff he advice me about the bpi-philam which is a little of an insurance but more of an investment.
However, I had reviewed the policy after a month because of the holiday. To summarize, I will only have 10k recovered amount from my k if i will surrender the policy.
What will I do, will I push it thru of will I surrender the polycy and just forget the 90K loss? I also reviewed the projected account value and even on the 10th year of the policy i'm still at loss of 2. Please help me decide Hi Anonymous, I'm really sorry to hear that. But my advice, when it comes to VUL, is to choose something else if you don't have one, and stick with it if you have one already.
As you see, the price tag of getting out is very steep. Objectively speaking, you can move to a better investment, but that would mean an investment where your 10k can grow to more than k in a relatively short time. And those types of gains can't be found even in direct stock investments - at least not usually and not without some "help" , Better to just stick with your investment, as the investment can still grow, and the premium charges are at least for insurance right? And thanks for sharing your experience.
It's always good to talk about investments in "real" terms rather than in the "hypothetical" most sales agents use. Hi sir, no sir the premium charge is mostly for the agents commission, admin fee.
I as stated on the policy if ever I die, my beneficiary will get the higher of the face amount or invesment acount value. And that is really weird. Di ba dapat the benificiary will get the face amount plus the investment value? But what is stated in the policy is different. Whichever is higher lang ung makukuha.
It is really better to get a term and invedt the difference. Since your beneficiary will get both account when you die. Definitely, that's very weird! I've always read and heard the sales pitches anyway that you get both. Or at least that's always the impression they get. If that's what is in your policy, that's a very bad VUL, However, the option of forgoing that 90k is equally onerous. That's just a bad set of choices.
I suggest really clarifying this with your agent. Maybe that only happens in certain situations? Also clarify how much of the premium it is paid yearly? That way you know if pushing through with it is really practical. For me, even just thinking of letting that 90k go is painful. So if the face amount alone is enough for your beneficiaries in case something unfortunate happens, it's not so bad to stick with the policy.
Eventually the investment will grow. But yeah, in this case, Buy Term and Invest the Difference is the clear best option. But it's largely up to you if you can let that 90k go, or how you can deal with it emotionally anyway.
Im also having a nightmare thinking that my 90k would just go. That is a 5month salary net. Thank you very much. I have come to a decision to stick with it and charge it to experience as you have said. I am currently reading the article and the comments of you sir Carlo and the others.
I'm starting to learn about VULs in a policy holder's perspective: Hi, thanks for the advice. I blamed myself for being lured in this however it was not my original plan to have a bpi-philam but bpi uitf since i already have yhe sunlife. I just dont understand why some agents only thinks of their commissions and not on both client and customers perspective Well, in this case let's just be gracious and think that maybe they have families in great need.
We can always make more money and learn from our actions or sometimes, inaction. I'm reading this and i get really worried. In vuls if you die,you dont get the face amount and the invesment account, only the higher amount of both account.
I know agents are saying differently on what is written on the policy. If you are a risk taker go for VUL.. So basically the choice is whole life or VUL? The other Anonymous provided some good points. Although, in a VUL, you can choose a "risk-free" money market or "low-risk" bonds investment as well as high-risk ones equity fund, balanced fund. So you could be risk-averse and still get a VUL. Whole life could be much cheaper though, if all you want is lifetime insurance.
So decide what the real goal is, because both have strong selling points. It's easy to make a sub-optimal choice if you aren't clear in your objective. Thank you for this! My main goal as of now is to get insurance that will last until maybe 80 y.
In the near future, I will be investing in MF for retirement funds. Thinking of stocks for short term investment after I study everything. I read that although term insurance is affordable now, it could go up as I age so in the end, VUL still has more value for money in the long run?
Well, you're doing research and that's the most important step. Whichever is best for you isn't for me or pretty much anyone else to say.
I would like to caution you against using stocks as a short term investment. Do it only if you have time to monitor your stocks. Or if by short term you mean shorter than your retirement investment but still around 5 years or so. Definitely Term insurance will go up. You're paying just the life insurance, so you see it clearly. For VUL and whole life, it's best to watch the breakdown of the fee you are paying.
You'll notice that the large, "flat" fee has a lot of components, only one of which is the cost of insurance essentially what you are paying for term; which also goes up in other forms of life insurance.
DO we still need to paste a documentary stamp in the authenticated paper or is it already there? Man, you don't just how much weight has been lifted off my chest. Wonderful and very informative blog I have ever read. I am now about to begin to process my documents because me and my daughter will be off to Qatar soon with my husband.
Indeed this article is a big help for me. Thank you very much blogger! I need to do this for my scholarship. Your post is so helpful! THank you so much! Very informative thanks for sharing to us your blog. Actually you gave me an idea about the DFA fees. The only thing I need to know if my documents will be brought to Saudi Embassy for authentication I found this blog very informative, and kudos for the background music, really love reading all the comments while listening the music..
Thank you so much for this post! By the way, for the best lawyers in Manila, you may click here. My sister is getting married in church on December. Since she and her husband are both working abroad, I do some of the paperworks for her. One of the required documents that they have to submit on church is the NSO autheticated birth certificate. However, she found out that the name in the birth certificate is misspelled. So what we did was to produce an Affidavit of Discrepancy and then had it notarized.
But this doesn't end there. I just found out that correcting this simple erroneous thing is very tedious. Is it too much to ask for these government workers to strive for efficiency? I bet they don't know that their errors costs a lot of wasted money, time and effort on the part of the victim. Anyway, my friend's sister who I think is a lawyer told her that she needs her birth certificate to be authenticated by the Department of Foreign Affairs DFA. This authetication is referred to as "red ribbon".
This is the first time I heard it so I did a little research. I went to the site of DFA and looked for the citizen services. This is what I found out: Given the existence of a multi-state system, aforesaid Convention stipulates that, among other things, the various kind of documents sourced from particular sovereign states e.
When these acts, deeds or documents have been duly authenticated by the Department, the receiving embassies or consulates or any other foreign legal entities are, in effect assured that aforesaid documents are in order or have been legalized in accordance with proper procedure.
So what is the purpose of this procedure? The DFA authentication attest to the genuineness of the signature appearing on the attached certification for the purpose of identifying a specific document and giving credence to the official acts of the notary public or certifying officer thereon for use, if and when required, as instrument of evidence in foreign countries. Further to this, DFA states that: Foreign Embassies, Consulates and foreign legal entities may or may not require the authentication of documents sourced from the Philippines for use within their respective jurisdictions.
However, under rules of reciprocity in international relations, sovereign states normally require authentication of foreign documents to be used. The next question will be: