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.
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 cash value you can also expect in the future.
What are the charges?
Charges in VUL plans are 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?
You are covered until age 88 in VUL insurance plan.
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 chosen advisor.
Do you send statements of account?
Yes. You have options to receive your statement of accounts either via email or with 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.
Yes. Afterall, it’s your money. However, it is just not recommended 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. Upon application, 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 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 (ADA), 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 a higher potential of returns in the investment part of your VUL plan.
Can I pay my VUL plan using a credit card?
This option is not yet available with VUL plans. This option is available with our traditional plans like Sun Fit and Well.
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 chosen FA can assess if VUL is the right plan for you.
Ready to get a VUL plan? Fill up the form below and let’s set an appointment to further discuss the plan!
Many individuals are getting confused whether to get insurance first or investment where their money can have a sustainable return.
Let’s take a look at the picture below:
This is a financial planning pyramid which contains 3 levels that can be a guide in building our financial wealth. It’s important for us to follow a certain path so we can build a strong base, not to be confused and to avoid financial loss along the way.
This pyramid might also be the answer to your question on what to get first between insurance and investment.
Protection (Build Solid)
This level is all about protecting what you currently have. That includes your life, your health, your income, your family and any other aspects of your life that you want to protect. We manage the risk of losing money in this level so getting insurance (life, health, total disability, etc.) and saving for an emergency fund is highly recommended here.
Clearing out debts is also one way of building a strong and solid base for your financial planning pyramid will be unshakeable and firm.
Accumulation (Grow Your Money)
This level is where you find ways, other than the bank, to grow your hard-earned money and let it work for you. There are many investment vehicles that can definitely suit each of your goals. It is for you to research and study well before putting your money in an investment so as to avoid scams and to put you back again into debt.
Always remember, if someone offers you an investment that’s too good to be true, trust your guts.
Distribution (Leaving a Legacy)
This is where we make sure that all accumulated assets we have are well protected and were assured that it stays with us and our family. Proper estate planning is very important here so as to avoid legal charges if estate taxes will not be paid by heirs. Life insurance proceeds are one way of paying estate taxes.
Leaving a legacy might result in two things: either good or bad. Good in a sense that you have taken care of everything and made sure that your family would not suffer financial hardship when God calls you home today. And bad in a sense that your family might not continue the comfortable living you’ve let them experienced when you were still alive because of so much debt or estate taxes to pay.
I had friends who are very interested and eager to start investing their money without a solid financial foundation. As a result, they just opened an account, invested initial amount and until now, was not able to set aside money for investment again because of emergencies in their family like getting sick and losing a job.
This is a downside when you jumped ahead to the second level of the financial pyramid. Your finances will be very shakable and uncertain. It is best to develop a habit of saving first with an emergency fund and insurance, so investment will follow.
What if you can afford to have insurance and investment at the same time?
Single Pay Variable Universal Life (SPVUL) insurance removes the hassles of regularly paying an investment plan just to keep it in force. By paying one-time and big-time, it already gives you the guaranteed protection you ought to have when uncertain events happen.
Single pay VUL plans focus more on the growth of fund value or investment for your wealth accumulation, preservation, or transfer. It gives you the benefit of getting higher returns compared to regular savings and time deposit accounts.
Sun Flexilink1 and Sun Maxilink One are single pay VUL plans which Sun Life offers.
Sun Maxilink One
Coverage up to age 88
Coverage up to age 88
Face Amount + Single Premium + excess premium - withdrawals; or
Policy's fund value
Face Amount + Single Premium - withdrawals; or
Policy's fund value
Ages 0-70 can apply
Ages 0-80* can apply
*For ages 71-80, available for Non-smokers only
Top-ups/Excess Premiums are allowed
Top-ups/Excess Premiums are NOT allowed
P150,000 minimum single premium
P250,000 minimum single premium
Can attach riders(additional benefits)
No riders available
Regular Underwriting and GIO* are allowed
*For ages 71-80, Regular Underwriting only
*GIO - Guaranteed Insurability Offer (no underwriting)
Why opt for Single Pay VUL?
Single pay VUL are investment plans that will give you potential returns higher than inflation rates. Savings deposit and time deposit rates can no longer outpace our inflation today that ranges from 5% to 7% as of 2018.
Saving your P1,000,000 in a regular savings account will give you P1,002,500after 1 year based on a 0.25% interest.
On the other hand, putting your P1,000,000 in a time deposit account will give you 1,010,000 after 1 year based on a 1% interest which banks normally offer.
Comparing it to our inflation rate of 6.4% as of August 2018, you should have at least 1,064,000 to acquire the same things or services after 1 year.
So how are we going to address the problem?
Putting your money to other investment instruments like Sun Flexilink1 and Sun Maxilink One is just one way to outpace inflation.
If you try to put your P1,000,000 in Sun Maxilink One, your projected fund value after a year is P1,204,192 based on a 10% compounding interest.
Aside from the investment the plan offers, you are also protected with insurance coverage of 125% of your single premium which can serve as a safety net or can give your family the ease of estate transfers.
Investing in single pay VUL funds are managed professionally so that you can earn better than inflation rates. This plan, like regular pay VUL, is also appropriate for long-term goals. Since it has an investment, it also gives you risk of losing your money. This can be managed by choosing the FUND that matches your risk appetite.
At the end of the day, it is still best that you talk to a trusted Financial Advisor. In that way, they can help assess your needs and priorities when it comes to financial planning. Information that you read here is very limited. You might have other questions that need to be addressed only by a Financial Advisor.
If you want those questions to be cleared, you can fill up the form below. Let’s set an appointment and talk about how you can achieve financial security in the future.
Sun Flexilink is almost the same with our Sun Maxilink Prime and Sun Maxilink Bright. It is a Variable Unit Linked plan that provides maximum life insurance coverage, health protection in which you have the option to add, and investment component similar to a mutual fund. You can get all these three benefits in one plan with a very affordable premium.
Sun Flexilink really gives you a comprehensive plan that will be beneficial to you and your family in case an uncertain event happen. The good thing here is that, in case you live too long, it can provide you a retirement fund using the investment component of the plan
This plan is perfect for individuals who are willing to commit in paying affordable premiums for a long period of time.
Mr. Investor wants to get Sun Flexilink plan with a 1Million Face Amount.
Male | Age: 25 | Non-smoker
He’s willing to set aside P30,000 annual premium.
What can he get with Sun Flexilink with a P30,000 annual premium?
– Life insurance coverage of P1Million
– 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).
– Critical Illness Benefit > if Mr. Investor has been diagnosed, while living, to have contracted any one or more of the the 36 Critical Illnesses listed in the proposal or has undergone any of the specified surgeries, then he will receive P800,000.00.
– Hospital Income Benefit > in case Mr. Investor was confined in the Hospital, as a result of Injury or Sickness, on the recommendation of a Physician as an in-patient, he will receive ra reimbursable Ps 1,000.00 each day of confinement. (minimum of 3 days)
– Investment Benefits! Setting aside P30,000 for years, he will already have a fund value of:
-P300,000 after 10 years: P257,582
-P300,000 after 20 years: P1,035,615
-P300,000 at age 65: P8,274,089
*Assuming at 10% compounding interest.
What you need to know more about Sun Flexilink:
– The plan is payable for 88 years. The good thing here is you have the option to cease premium payment for a period, with a view to continue it later on. (Premium Holiday Option)
– You have the option to choose where your money would be invested. It could be in an equity fund, index fund, balanced fund, bond fund or combination of these funds. It really depends on your risk appetite.
– You are covered until age 88
– You can pay additional amount anytime aside from the P30,000 that can give you higher fund value.
– You can choose to pay it every quarter, semi-annual or annually whichever you are comfortable with.
– You are entitled for a 2% Loyalty Bonus starting at the end of the 10th policy year and every 5 years thereafter.
– You have the freedom to do partial withdrawals in case you need money, may it be for educational, retirement or travel fund.
– Female applicants have the option to add Female Critical Illness Benefit or Female Critical Illness and Maternity Benefit which will cover them for specific female critical illnesses
Convinced to get a plan that can secure your future and your family as well? Just fill up the form below and let’s set an appointment to further discuss the plan!
“Life insurance isn’t something you spend time thinking about, but if something happened to you, how would your family get by?” – Danica Patrick, professional race car driver and spokesperson for Life Insurance Awareness month.
Your financial advisor for life,
PS. Looking for a comprehensive health insurance? Sun Fit and Well might be the solution to your needs.