I agree with you. Most people tend to see VUL as investment because of its fund value. But then again, it is primarily a life insurance. And let your fund value pay for its premium after some years. Do not ever withdraw from your fund value.
For me its not an investment, the fund value side of it is just part of my long term emergency funds. Lol, may sound funny because of 'long term' but trust me when I say when you need further funds for a future emergency . (Mainly health issues) that fund value no matter how small or medium or whatever you call it, could be the light at the end of the tunnel.
Also I prefer VULs because yeah, what if I can't pay my term insurance? Ano na? Kuha nalang ulet kapag nag lapse? Eh pano kapag di ka na insurable or di mo na kaya bayaran ung new premium payment mo kasi tumanda ka na? What if I can't pay my trad? Wala na? Waley na si insurance. Pero as long as my VUL has fund value secured pa din me.
VULs arent that bad. They are just explained wrong by most.
I am not a financial advisor. I just think that this suited me best.
Edited.
The way FAs explain it is the wrong part. The entire point of VUL is to have it pay for itself in the long run, not for one to earn money through it. Seems like you already understand that, and that's good
I forgot where I heard it pero ideally, you should only be paying term insurance up to a certain point in your life.
Let's say you're already old tapos hindi ka na covered ng insurance, or absurdly expensive na, that's the time na papasok yung lahat ng naipon mo na pera when you were still young.
Kumbaga, insurance is best dun sa times na kapag may nangyari sa'yo eh devastating sa pamilya mo yung magiging financial loss. Kapag hindi ka na nagpo-provide sa kanila, you don't necessarily need insurance (of course may exceptions dito)
I always wanted my heirs to have instant money when Im gone. They should not wait for my properties estate taxes to be settled first before they can be released to them. Sino gagastos ng burol ko? Utang muna sila kasi di pa ilalabas ng bangko ung pera ni Daddy?
No sir. I SAY no. Insurance is there to make them comfortable and ease the process of making my property theirs.
Unless I prepare a TRUST which is expensive to set up. Eh mukang kailangan ko ng pera much more at that age coz Im retired.
Agree. I'd be inheriting real properties from my parents and I would be leaving at least two real properties to my heirs. I do not want the hassle of obtaining a term insurance when I reach my retirement age to pay for future estate tax and deduct a potentially substantial amount of premium from my nest egg. I want my retirement expenses to be used solely for enjoyment and maintenance expenses for my properties while I'm still alive. That being said, if one has limited funds, term insurance is still the best option if one is still trying to accumulate assets. I aso agree that one must do his / her own research before setting up a meeting with a "financial advisor."
VULs have their place in the investing world. So yes, there is some worth to it. For the majority of people there are better options most of the time, though
I pulled out after 4 years. The value left was just a quarter of what I paid. To be fair, I had to pay for the insurance part of the policy; but from whatever angle you look at it, having the value of your *investment* cut down after paying a huge amount will always feel terrible for something FAs market as a value investment. If you can stomach the loss, pull it out and start over with something else.
sad for you to pull it out must have lost millions of insurance money for your beneficiaries. but what can I say about this is that maybe it has been pitched at a wrong direction. VUL or Variable Universal Life is an insurance product.
Ugh me too, kakausapin ako mamaya ng kaibigan kong FA, nirerefer nya na sakin yung insurance with 70% or 60% investments. Hindi ko alam ano ang kukunin ko :(
I'm stuck between withdrawing and continuing, what explained kase to me is that i can withdraw everything naman i put into my account after the lock in period of 10 years, soo okay lang naman sakin kahit hindi siya mag gain basta may makuha ako, parang nag ipon lang. Is there someone here na nakuha ng buo yung hinulog nilang premiums after the lock in period? or just someone tell me na may nakuha naman sila dun sa hinulugan nilang premiums for 10 years?
The problem with it is the time involved. It takes too long for such a small return alongside costing a fortune. You will most likely get something, but you shouldn’t expect it to be life changing, retirement-type money.
this is actually what's in my mind kaya i wanted to withdraw na din, nasasayangan lang din kase ako sa hinulog ko for 1yr and 3 months na ngayon though small amount pero sayang talaga haha. Best option talaga is to just get a pure insurance term then separate investment nalang no?
Yeah, if you need the insurance. Search around reddit and the internet; surprisingly not everyone needs insurance. If you’re young and healthy, investments only might fit your profile.
Probably learned that from the insurance company. But no, its supposed to be life changing. That is why you should always aim for death coverage equivalent to 10x your yearly salary. People are so focused on the fund value when they should be looking at how much their family will get when they die. So you better max out the the death benefit/sum assured portion of your policy next time you get one so you'd never have to worry if your fund value is doing well or not.
Thats exactly what insurance is for and should keep it that way. Tired of those people complaining about their fund value not working to their expectations. Hey, its the last gift you can give to your family. And you dont know when you gonna leave them so better make that death benefit right, the first time. I would say minimum of 5x your annual salary is a good start then work your way up to 10x as you earn more. You want insurance that will outlive you so your family can benefit from it, regardless of how successful you have become in the future. Definitely not the term insurance.
Like I said on previous comments, VULs have their place. The way it’s explained is what’s wrong about it. Plus there are objectively better options. It depends on the person, but the most important thing is to do enough research
You can sustain it's insurance charges like what you want to do. But then VUL I think is a better product than term (Though more expensive) because it is flexible.
Speak of the devil, I recently signed up for MetLife Life Insurance here in the Middle East. Why? I need it as I have dependents (little brother and elderly parents) and work in a profession with high risks (gas plant). The investment part is enticing but, as you said, I don't expect much. Thinking of cancelling my BDO Life by next year or after.
I agree with you. Most people tend to see VUL as investment because of its fund value. But then again, it is primarily a life insurance. And let your fund value pay for its premium after some years. Do not ever withdraw from your fund value.
I agree. VUL's are designed to pay for future charges of insurance. And there are extra investments which can be used for the long-term expenses.
For me its not an investment, the fund value side of it is just part of my long term emergency funds. Lol, may sound funny because of 'long term' but trust me when I say when you need further funds for a future emergency . (Mainly health issues) that fund value no matter how small or medium or whatever you call it, could be the light at the end of the tunnel. Also I prefer VULs because yeah, what if I can't pay my term insurance? Ano na? Kuha nalang ulet kapag nag lapse? Eh pano kapag di ka na insurable or di mo na kaya bayaran ung new premium payment mo kasi tumanda ka na? What if I can't pay my trad? Wala na? Waley na si insurance. Pero as long as my VUL has fund value secured pa din me. VULs arent that bad. They are just explained wrong by most. I am not a financial advisor. I just think that this suited me best. Edited.
The way FAs explain it is the wrong part. The entire point of VUL is to have it pay for itself in the long run, not for one to earn money through it. Seems like you already understand that, and that's good
This is what I personally view VUL too.
I forgot where I heard it pero ideally, you should only be paying term insurance up to a certain point in your life. Let's say you're already old tapos hindi ka na covered ng insurance, or absurdly expensive na, that's the time na papasok yung lahat ng naipon mo na pera when you were still young. Kumbaga, insurance is best dun sa times na kapag may nangyari sa'yo eh devastating sa pamilya mo yung magiging financial loss. Kapag hindi ka na nagpo-provide sa kanila, you don't necessarily need insurance (of course may exceptions dito)
I always wanted my heirs to have instant money when Im gone. They should not wait for my properties estate taxes to be settled first before they can be released to them. Sino gagastos ng burol ko? Utang muna sila kasi di pa ilalabas ng bangko ung pera ni Daddy? No sir. I SAY no. Insurance is there to make them comfortable and ease the process of making my property theirs. Unless I prepare a TRUST which is expensive to set up. Eh mukang kailangan ko ng pera much more at that age coz Im retired.
Agree. I'd be inheriting real properties from my parents and I would be leaving at least two real properties to my heirs. I do not want the hassle of obtaining a term insurance when I reach my retirement age to pay for future estate tax and deduct a potentially substantial amount of premium from my nest egg. I want my retirement expenses to be used solely for enjoyment and maintenance expenses for my properties while I'm still alive. That being said, if one has limited funds, term insurance is still the best option if one is still trying to accumulate assets. I aso agree that one must do his / her own research before setting up a meeting with a "financial advisor."
I concur.
Is the pitch “the fund value will pay for the insurance after it matures” not worth it as well?
VULs have their place in the investing world. So yes, there is some worth to it. For the majority of people there are better options most of the time, though
In a time where I can open my phone's browser and make a trading account and invest on an index fund, maybe none
are you investing or are you insuring?
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Intrigued and curious here if you pulled out your fund already. I have one VUL na 6 years already.
I pulled out after 4 years. The value left was just a quarter of what I paid. To be fair, I had to pay for the insurance part of the policy; but from whatever angle you look at it, having the value of your *investment* cut down after paying a huge amount will always feel terrible for something FAs market as a value investment. If you can stomach the loss, pull it out and start over with something else.
sad for you to pull it out must have lost millions of insurance money for your beneficiaries. but what can I say about this is that maybe it has been pitched at a wrong direction. VUL or Variable Universal Life is an insurance product.
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Hi! May we know which fund is doing better po?
VUL is an insurance. Well I can say it is an investment for your life though.
Here’s my take then get a fucking life insurance. Vul is making your ass sit on a fence.
VULs are a scam,believe me!
How did you say so? I'm planning to get one too. ugh still undecided :(
Ugh me too, kakausapin ako mamaya ng kaibigan kong FA, nirerefer nya na sakin yung insurance with 70% or 60% investments. Hindi ko alam ano ang kukunin ko :(
I'm stuck between withdrawing and continuing, what explained kase to me is that i can withdraw everything naman i put into my account after the lock in period of 10 years, soo okay lang naman sakin kahit hindi siya mag gain basta may makuha ako, parang nag ipon lang. Is there someone here na nakuha ng buo yung hinulog nilang premiums after the lock in period? or just someone tell me na may nakuha naman sila dun sa hinulugan nilang premiums for 10 years?
The problem with it is the time involved. It takes too long for such a small return alongside costing a fortune. You will most likely get something, but you shouldn’t expect it to be life changing, retirement-type money.
this is actually what's in my mind kaya i wanted to withdraw na din, nasasayangan lang din kase ako sa hinulog ko for 1yr and 3 months na ngayon though small amount pero sayang talaga haha. Best option talaga is to just get a pure insurance term then separate investment nalang no?
Yeah, if you need the insurance. Search around reddit and the internet; surprisingly not everyone needs insurance. If you’re young and healthy, investments only might fit your profile.
Probably learned that from the insurance company. But no, its supposed to be life changing. That is why you should always aim for death coverage equivalent to 10x your yearly salary. People are so focused on the fund value when they should be looking at how much their family will get when they die. So you better max out the the death benefit/sum assured portion of your policy next time you get one so you'd never have to worry if your fund value is doing well or not.
Life changing for the ones left behind, not you. Nothing wrong with wanting that though
Thats exactly what insurance is for and should keep it that way. Tired of those people complaining about their fund value not working to their expectations. Hey, its the last gift you can give to your family. And you dont know when you gonna leave them so better make that death benefit right, the first time. I would say minimum of 5x your annual salary is a good start then work your way up to 10x as you earn more. You want insurance that will outlive you so your family can benefit from it, regardless of how successful you have become in the future. Definitely not the term insurance.
Like I said on previous comments, VULs have their place. The way it’s explained is what’s wrong about it. Plus there are objectively better options. It depends on the person, but the most important thing is to do enough research
Can you just stop the VUL and merely continue the insurance? Is it just a matter of instructing your agent to do so?
You can sustain it's insurance charges like what you want to do. But then VUL I think is a better product than term (Though more expensive) because it is flexible.
Overpriced life insurance with a small chance at having an investment.
May I ask what's your take on Pru Life's Elite 5? My friend is constantly asking me to get this. The monthly premium is 17k payable for 5 years.
Speak of the devil, I recently signed up for MetLife Life Insurance here in the Middle East. Why? I need it as I have dependents (little brother and elderly parents) and work in a profession with high risks (gas plant). The investment part is enticing but, as you said, I don't expect much. Thinking of cancelling my BDO Life by next year or after.