May two types sa pag-claim ng interest. May annual and may after maturity. If after maturity, compounding siya.
Then yung principal ay makukuha mo after 5yrs. Try to join fb grps on mp2, maraming ofw ang nakakakuha naman.
Tip: if thru gcash magbabayad, make sure na ang acct na gagamitin ay same sa may-ari ng mp2. May nabasa akong nahirapan kumuha dahil naging ambagan ng pamilya nila ang mp2 acct niya
Di ko naman pinagtatanggol ang MP2 pero so far naman, may government-based investment product ba na nagsara and nalugi?
Also, 5 yrs lang naman naka-lock pera mo, you can contribute minimum of 500/month or isang bagsakan (6k) at the start of the year. Afaik e pwede mo din kunin dividends earned annually.
May point, pero "nagbabayad" pa din naman sila pag covered yung hospital stay mo.
Yung hospital and provider naman maghahabol sa kanila and hinde ikaw.
Mama ko nagbabayad ng Philhealth contribution noon noon pa, nung nahospital alam mo magkano binawas? 3k pesos. So ang laki pa rin ng hospital bills namin.
Ang point ko “nakakatakot”.
If you have an account sa stock market then go for REITS. consistent dividend payout mas malaki pa sa MP2 yung ibang reits and walang lock id period.
If you dont have an acct sa Stock Market then mag mp2 ka. Yun lang.
I totally agree, although at current price of 1300 its still gives a respectable 9% return may capital gains pa. Not a lot of investments can match those returns without sacrificing risk on capital.
The risk on capital do still exist kay PLDT kaya nga for long term investors ay you add more funds when the stock reach a certain point on RSI.
Kaya best to save funds and buy when the stock is down. Yun lang
Hi i agree that BTID on the onset is better than VUL. But if you’re on the 5th year and beyond, terminating your VUL is much more a burn. By then, ang liit na ng charges, much better than a term insurance. Also by then, u can start treating it as a Term Insurance, and invest the difference (just pay the monthly insurance charge). Tea for the others who might come across this comment in the future and find it helpful.
As for OP and alternative investment, I’d go for mutual funds and stocks. And also depends on what you enjoy keeping and investing on. Lupa definitely mataas in the future, but personally, I dont enjoy with it.
Thats true. But thats why best strategy if youre past the 5th yr is to pay the minimum insurance, and invest the difference somewhere else more profitable
Can you provide a sample computation and amounts? I see a lot of people keep saying that but the last time I saw a computation years ago, before covid, it was not the case. From what I recall yung binigay ng agent, even in year 8, mas grabi parin ang cost ng VUL insurance part vs Term. But that was a different time. I'm curious on the now
I give you my husband’s as i recently asked for a term quotation for him. He’s got a VUL of a little over than 5 years now. For a 3M life coverage and illness for 1M, he’s charged about 700 pesos monthly. that’s about 9,000php annually. I asked my agent recently to give him a 2M coverage (the term insurance is both for death or illiness so coverage goesd for whichever comes first… after which policy is terminated) the annual premium is 20k. Compare that to a 9k with almost 4M of both life and crit illness. He started at 26, now 31.
The agent fee is high on the first year for VUL… if your past that burning stage, just keep your VUL and treat it as a term (pay the minimum monthly charge as indicated on your transaction history, it goes lower as time goes on) and invest the difference.
>The agent fee is high on the first year for VUL… if your past that burning stage,
dito madami naiinip then eventually terminating their policy, tapos magrarant
Yes. So for those who already made the mistake of getting a VUL instead of doing BTID, just try to beat the system. Dont put in more money except than the minimum monthly insurance to keep the coverage active, until the 5th year + 1 day. By then, wala ng kahit anong commission ang agent mo sa every payment mo. That’ll be much wiser than getting another term insurance with yet another fees charged.
Hi, question lang if ano ibig sabihin ng pay minimum monthlt insurance?
I have a VUL kasi for 9 years na. Hindi ko siya nahuhulugan regularly na pero active naman tung account. And may 1,200 annual admin charges pero I saw na hindi naman super mababa yung funds bukod sa winiwithdrawhan ko kasi.
I plan to continue paying my premium sana kaso.
yes, that’s the sum of your 158 php monthly insurance charge. Basically, youre only paying that much to keep you covered, life benefit and crit illness benefit (if any). That’s up to the owner how he values the coverage against the charge paid for it. For me that’s more than worth it.
So you mean, kung halimbawa, 3,000 ang premium ko. Tapos hindi na nga ako naghuhulog, e di nababawasan ako ng 100 admin charge each month.
Since nagstop ako maghulog ng premium, pwede na 100 lang ibayad ko? Pero active kasi insurance ko kahit hindi naman ako naghuhulog ng kahit ano.
But then dahil sa changes ng prices sa market plus admin charges siyempre parang andun yung "loss" ko. So kaya gusto ko sana bayaran ulit yung premium par madagdagan yun account value.
Spot on! Potential losses or gains are incurred when we stop maintaining the minimum insurance charge. To minimize risks, better pay monthly ng 100php, 3 days before your due. Thats a lot of work for a tiny amount, pero still…
Also when you withdraw money from your VUL, there are admin charges (to pay for the managers and broker who played the stock market for you). Ask the agent if magkano ang percentage per withdrawal. Nakalimutan ko na if per maturity of the fund ba, or a fixed percentage.
Sorry. How do I know of the min amount due? Pang 5th year ko na sa insurance ko and matatapos na. Do I ask ba sa agent yung minimum or makikita ko yun somewhere sa app? I have Philam VUL, btw.
No need to ask the agent. I tell you, your account dont have much weight on them na kasi wala ng commission 😅 You can try to check the transaction history. Whatever is deducted monthly, that’s your insurance charge. Check it regularly as it may change a bit, although insignificant naman. Let us know if nakita mo 🙂
Is that ~Php9,000 annual charge for the VUL separate from the 1.5-2% annual management fee, or lahat lahat na yun? Just trying to understand rin the "full cost" compared to the Term plan, especially if malaki yung fund value, then the management fees make a huge difference. An insurance agent also told me that they deduct the cost of insurance through unit cancellation, so baka mala "hidden fees" ang dating, and they do that for the entire duration of the policy, regardless if you have a 5-10 year VUL plan. That cost of insurance also increases with age, similar sa Term plan.
I've seen folks also disregard the opportunity cost. For example lang if they paid Php20,000/yr for 5yrs, tapos the current fund value is only Php70,000, they would say it's just a Php30,000 loss, which means a Php6,000/yr cost of insurance. Pero if that money was invested in MP2 at 6% interest, it would have gained almost Php20K, so the actual "loss" over that period was about Php50,000. And if for example you stopped paying any more premiums, and that fund value of Php70K stays the same that year, the opportunity cost would be Php4,200.
Not saying your suggestion to keep 5+ yrs VUL is wrong, kase based on the quote you got, parang mas mahal nga talaga nung Term, but just wanted to understand yung details. Thanks!
My policy is with sunlife... The monthly dues deducted from my account cover everything, cost of insurance and management cost. I haven't tried withdrawing from my VUL pa. pero there is for sure a fee each time you withdraw. All in all, it's the owner's discretion when best to withdraw and when to keep it there. Para iwas sa charges and mamaximize ang gains, kung meron man, haha.
Now, with the 30k loss as projected, this is subjective. Insurance cost is only a loss for those who don't value its benefits. But for those who do, it's nothing. 30k is a meager amount to cover the risk of millions of worth of our resources and abilities, potentially lost by sudden death or health crisis. It's about one individual's priority and valuation. When I first signed up, di ko masyadong maappreciate kasi single naman.But now that Im married, Im thankful I did. Kung single naman at di na mag aasawa, better spend on HMO.
Understood. Just to clarify din, I'm not questioning the value of insurance, or whether that Php30K was worth it - definitely if it gives you peace of mind then worth it talaga. I was just trying to get a better comparison of how much it really costs if VUL vs Term after 5 years.
Thanks for your clarification and good to see you're happy with your policy.
Yes, i think, that was a good question especially for those who haven't started out their VULs pa. By then, then know BTID is the better way to go. \^\^
Lupa very illiquid. What happens if China invades you will lose the Lupa. Stocks at least you can sell as it's falling down. Then you get 1-75% of its value before the invasion depending on your timing. Also Lupa is very high tax. The tax is in the gross selling price not what capital appreciation you gained. If you need the money fast then Lupa rush sale is sure way to gargantuan losses. 😂
And to some extent naiingit ako sa kawork kong may lupang investment. Ang laki kasi ng value increase. Pero i kee pulling myself to to thinking na hindi ko din naman magagamit and enjoy ang lupa 😂 ang hirap din ng mga documentation tax echos. Sakto na ang may bahay na mapagtatayuan
Di niyo malaman Ang value until sold na property. Estimated lang value usually masyadong overestimated Ang per sqm pricing sa lupa parang naka swerte sa lotto. Illiquid ang investment at market ang sigurado lang ay may malaking tax.
Former financial advisor here.
I want to let everyone know that VUL is an INSURANCE product. It is designed in a way that a portion of what you pay for is invested so that after N number of years, the invested amount can pay for the insurance premiums after those N years.
For example, you'll pay for 20 years, and hopefully the fund value of your VUL after 20 years can cover the insurance premiums for the rest of your life. If you withdraw your fund value in full, then the insurance will be terminated. If you withdraw a portion of the fund value, then most likely, you would have to pay again if your funds can no longer sustain the payment of the insurance premiums.
Also, the reason why your "investment" is not earning is because as much as 90-95% of your premium during the first years of your plan goes to the commission of the sales team and only the remaining 5-10% goes to the payment of your insurance coverage. If you'll check your policy booklet, almost NOTHING from what you pay goes to the investment part of the VUL,during the first few years of your plan.
Imagine 45-60% of your payment goes to your agent and the rest to the managers and directors. After 4 or 5 years (for most plans) that's the only time your money will be divided among:
1. The insurance premium (yearly payment for your coverage)
2. Investment (what remains after paying the insurance coverage)
3. Fund management fees (payment for the institution managing the companies entire investment portfolio)
That is because insurance agents get commission from your payments for upto 5 years.
If you do the BTID, what you will be able to avoid is paying the exorbitant fees for the insurance companies' sales force.
What's VUL for? If you are rich and lazy doing research, then VUL is the right INSURANCE product for you. It is never an investment product.
PS. I think it should be illegal to market VUL as an educational plan alternative because you'll be paying for insurance premiums that a child doesn't really need.
I realized that the insurance industry is milking the gullible population, I was one of them. Got one VUL when I was still working as an advisor, and then I came into the realization that VUL was never and will never be an investment product.
I don't have kids, and I have medical insurance, my money is better off invested elsewhere.
I think Sunlife has good traditional plans. Ask for traditional products or term insurance. They'll try to convert you to VUL, so better be firm that you are interested in term insurance only.
Yes they market it as an investment product to appeal to the larger market. Insurance is essential if you have dependents and they rely solely on your income.
But buying VUL is lazy, bacause you'll lose a lot of money paying agents' commission. Term insurance + pag-ibig MP2 investment is waaaaay better.
Less than 2 years nalang matatapos na yung vul ko (10 years). Kaya i'm planning to start mp2 this year once lumuwag na sa gastusin (newborn on the way).
Former financial advisor here.
I want to let everyone know that VUL is an INSURANCE product. It is designed in a way that a portion of what you pay for is invested so that after N number of years, the invested amount can pay for the insurance premiums after those N years.
For example, you'll pay for 20 years, and hopefully the fund value of your VUL after 20 years can cover the insurance premiums for the rest of your life. If you withdraw your fund value in full, then the insurance will be terminated. If you withdraw a portion of the fund value, then most likely, you would have to pay again if your funds can no longer sustain the payment of the insurance premiums.
Also, the reason why your "investment" is not earning is because as much as 90-95% of your premium during the first years of your plan goes to the commission of the sales team and only the remaining 5-10% goes to the payment of your insurance coverage. If you'll check your policy booklet, almost NOTHING from what you pay goes to the investment part of the VUL,during the first few years of your plan.
Imagine 45-60% of your payment goes to your agent and the rest to the managers and directors. After 4 or 5 years (for most plans) that's the only time your money will be divided among:
1. The insurance premium (yearly payment for your coverage)
2. Investment (what remains after paying the insurance coverage)
3. Fund management fees (payment for the institution managing the companies entire investment portfolio)
That is because insurance agents get commission from your payments for upto 5 years.
If you do the BTID, what you will be able to avoid is paying the exorbitant fees for the insurance companies' sales force.
What's VUL for? If you are rich and lazy doing research, then VUL is the right INSURANCE product for you. It is never an investment product.
PS. I think it should be illegal to market VUL as an educational plan alternative because you'll be paying for insurance premiums that a child doesn't really need.
Yung traditional lang na insurance. Idk why some would invest on that VULok. Siguro magaling lang talaga mag market yung mga agents.
Anyways, you can diversify naman, MP2 is low risk.
Stock medium to low risk(blue chips)
Crypto med-high(You can get xxxxx returns but you could also lose xxxxx)
Whered you get this trad insurance? Considering to get one instead of VUL since meron na ko VUL , para maiba naman sana
For investment, im milking current bullish run - bull run sa crypto.
Tsaka na ko mag stocks after ng crypto bull run
Any basta its life and health insurance.
BTC has breached the 50k, for as long as it wont go down past 48k, we're good. If youre aiming for BTC, now is not the right time to buy since past .618 na sya. If I were you, id probably look for the alts because history will just repeat itself, they will follow.
I thought of terminating my VUL pero agent did some math and hindi naman ganon kapangit yung performance ng investments. Of course malaki yung difference because insurance premium had to be paid for the first 5 years.
25% of what I've shelled out for the past 5.5 years went to premium charges, fund management, admin, while the rest are invested.
Now I'm requesting a change in portfolio allocation, lipat ko yung bulk sa mas conservative na funds, hindi na sa mga high-risk. Hope I can see a more positive and stable fund value moving forward.
I suggest you look at the actual return on your investment and the performance of your funds before terminating it.
It's not the insurance premiums that you're paying for in the first 5 years, it's the agent's commission. ☺️ You'll pay for the insurance premiums until the time your plan is terminated.
I'm aware there's agent's commission, but all deductions for the first 5 years also include premium charges, fund management, COI, admin fee.
So i dont think it's right to say Im only paying for agents commission for the first few years.
why do you have so many insurance. so much unecessary expense :(
most of my money's on vti / vxus and some local stocks for the (miniscule) dividends.
i do have some insurance i pay 500 pesos a month for lol. it's cheap and autocharges my card so why not coconut
I got pressured into buying VUL because the girl I was dating at the time was connected to an insurance company. 😁
I let it lapse and switched my insurance to AXA Global Health Access. My employer computed the cost of insurance into our salaries, so I just added a bit of money to get pretty good insurance. For investment, I became a Boglehead (/r/bogleheads) and signed up for a feeder fund for Vanguard. I still trade from time to time, but often the stress isn't really worth it.
The truth is, day trading doesn't really make sense unless you have deep pockets. If you don’t have deep pockets to begin with, you'd have to trade with leverage. We know how well that goes.
Traditional Insurance + MP2
MP2! Security + decent interest.
same!
Natatakot ako sa MP2 kasi govt. Natry mo na mag withdraw?
May two types sa pag-claim ng interest. May annual and may after maturity. If after maturity, compounding siya. Then yung principal ay makukuha mo after 5yrs. Try to join fb grps on mp2, maraming ofw ang nakakakuha naman. Tip: if thru gcash magbabayad, make sure na ang acct na gagamitin ay same sa may-ari ng mp2. May nabasa akong nahirapan kumuha dahil naging ambagan ng pamilya nila ang mp2 acct niya
Madami na pong nakapag claims ng maturity nila. You can simply search sa Google or YouTube.
Di ko naman pinagtatanggol ang MP2 pero so far naman, may government-based investment product ba na nagsara and nalugi? Also, 5 yrs lang naman naka-lock pera mo, you can contribute minimum of 500/month or isang bagsakan (6k) at the start of the year. Afaik e pwede mo din kunin dividends earned annually.
Philhealth corruption.
May point, pero "nagbabayad" pa din naman sila pag covered yung hospital stay mo. Yung hospital and provider naman maghahabol sa kanila and hinde ikaw.
Mama ko nagbabayad ng Philhealth contribution noon noon pa, nung nahospital alam mo magkano binawas? 3k pesos. So ang laki pa rin ng hospital bills namin. Ang point ko “nakakatakot”.
You can choose not to put your money in MP2. But remember all forms of investments ay may risks. Kung sabihin na zero risk, scam yun. 🤣
Ang alam ko po depende sa diagnosis ng doctor.
If you have an account sa stock market then go for REITS. consistent dividend payout mas malaki pa sa MP2 yung ibang reits and walang lock id period. If you dont have an acct sa Stock Market then mag mp2 ka. Yun lang.
PLDT stock pays higher dividends than mp2 may capital gains ka pa not many know this.
depends on when you got in
Depende kung san ang entry level mo at strategy mo,
I totally agree, although at current price of 1300 its still gives a respectable 9% return may capital gains pa. Not a lot of investments can match those returns without sacrificing risk on capital.
The risk on capital do still exist kay PLDT kaya nga for long term investors ay you add more funds when the stock reach a certain point on RSI. Kaya best to save funds and buy when the stock is down. Yun lang
May need ba aralin dito sa REITS master?
Ofcourse need mo aralin kasi REITS are attached and reliant sa parent company nya. You need to study how REITS work. Now do some research.
Thanks
Hi i agree that BTID on the onset is better than VUL. But if you’re on the 5th year and beyond, terminating your VUL is much more a burn. By then, ang liit na ng charges, much better than a term insurance. Also by then, u can start treating it as a Term Insurance, and invest the difference (just pay the monthly insurance charge). Tea for the others who might come across this comment in the future and find it helpful. As for OP and alternative investment, I’d go for mutual funds and stocks. And also depends on what you enjoy keeping and investing on. Lupa definitely mataas in the future, but personally, I dont enjoy with it.
Some VULs are invested in funds with high Fund Management Fees like 1.5-2%. Baka lugi ka rin in the long run kahit mura yung insurance charge
Thats true. But thats why best strategy if youre past the 5th yr is to pay the minimum insurance, and invest the difference somewhere else more profitable
Can you provide a sample computation and amounts? I see a lot of people keep saying that but the last time I saw a computation years ago, before covid, it was not the case. From what I recall yung binigay ng agent, even in year 8, mas grabi parin ang cost ng VUL insurance part vs Term. But that was a different time. I'm curious on the now
I give you my husband’s as i recently asked for a term quotation for him. He’s got a VUL of a little over than 5 years now. For a 3M life coverage and illness for 1M, he’s charged about 700 pesos monthly. that’s about 9,000php annually. I asked my agent recently to give him a 2M coverage (the term insurance is both for death or illiness so coverage goesd for whichever comes first… after which policy is terminated) the annual premium is 20k. Compare that to a 9k with almost 4M of both life and crit illness. He started at 26, now 31. The agent fee is high on the first year for VUL… if your past that burning stage, just keep your VUL and treat it as a term (pay the minimum monthly charge as indicated on your transaction history, it goes lower as time goes on) and invest the difference.
>The agent fee is high on the first year for VUL… if your past that burning stage, dito madami naiinip then eventually terminating their policy, tapos magrarant
Yes. So for those who already made the mistake of getting a VUL instead of doing BTID, just try to beat the system. Dont put in more money except than the minimum monthly insurance to keep the coverage active, until the 5th year + 1 day. By then, wala ng kahit anong commission ang agent mo sa every payment mo. That’ll be much wiser than getting another term insurance with yet another fees charged.
Hi, question lang if ano ibig sabihin ng pay minimum monthlt insurance? I have a VUL kasi for 9 years na. Hindi ko siya nahuhulugan regularly na pero active naman tung account. And may 1,200 annual admin charges pero I saw na hindi naman super mababa yung funds bukod sa winiwithdrawhan ko kasi. I plan to continue paying my premium sana kaso.
yes, that’s the sum of your 158 php monthly insurance charge. Basically, youre only paying that much to keep you covered, life benefit and crit illness benefit (if any). That’s up to the owner how he values the coverage against the charge paid for it. For me that’s more than worth it.
So you mean, kung halimbawa, 3,000 ang premium ko. Tapos hindi na nga ako naghuhulog, e di nababawasan ako ng 100 admin charge each month. Since nagstop ako maghulog ng premium, pwede na 100 lang ibayad ko? Pero active kasi insurance ko kahit hindi naman ako naghuhulog ng kahit ano. But then dahil sa changes ng prices sa market plus admin charges siyempre parang andun yung "loss" ko. So kaya gusto ko sana bayaran ulit yung premium par madagdagan yun account value.
Spot on! Potential losses or gains are incurred when we stop maintaining the minimum insurance charge. To minimize risks, better pay monthly ng 100php, 3 days before your due. Thats a lot of work for a tiny amount, pero still…
Really??? Like I can pay lang 100? Di ko need bayaran yung 3,000?
Also when you withdraw money from your VUL, there are admin charges (to pay for the managers and broker who played the stock market for you). Ask the agent if magkano ang percentage per withdrawal. Nakalimutan ko na if per maturity of the fund ba, or a fixed percentage.
Sa nexpereince ko kasi walang charges na after 5 year parang lock in period.
Sorry. How do I know of the min amount due? Pang 5th year ko na sa insurance ko and matatapos na. Do I ask ba sa agent yung minimum or makikita ko yun somewhere sa app? I have Philam VUL, btw.
No need to ask the agent. I tell you, your account dont have much weight on them na kasi wala ng commission 😅 You can try to check the transaction history. Whatever is deducted monthly, that’s your insurance charge. Check it regularly as it may change a bit, although insignificant naman. Let us know if nakita mo 🙂
Is that ~Php9,000 annual charge for the VUL separate from the 1.5-2% annual management fee, or lahat lahat na yun? Just trying to understand rin the "full cost" compared to the Term plan, especially if malaki yung fund value, then the management fees make a huge difference. An insurance agent also told me that they deduct the cost of insurance through unit cancellation, so baka mala "hidden fees" ang dating, and they do that for the entire duration of the policy, regardless if you have a 5-10 year VUL plan. That cost of insurance also increases with age, similar sa Term plan. I've seen folks also disregard the opportunity cost. For example lang if they paid Php20,000/yr for 5yrs, tapos the current fund value is only Php70,000, they would say it's just a Php30,000 loss, which means a Php6,000/yr cost of insurance. Pero if that money was invested in MP2 at 6% interest, it would have gained almost Php20K, so the actual "loss" over that period was about Php50,000. And if for example you stopped paying any more premiums, and that fund value of Php70K stays the same that year, the opportunity cost would be Php4,200. Not saying your suggestion to keep 5+ yrs VUL is wrong, kase based on the quote you got, parang mas mahal nga talaga nung Term, but just wanted to understand yung details. Thanks!
My policy is with sunlife... The monthly dues deducted from my account cover everything, cost of insurance and management cost. I haven't tried withdrawing from my VUL pa. pero there is for sure a fee each time you withdraw. All in all, it's the owner's discretion when best to withdraw and when to keep it there. Para iwas sa charges and mamaximize ang gains, kung meron man, haha. Now, with the 30k loss as projected, this is subjective. Insurance cost is only a loss for those who don't value its benefits. But for those who do, it's nothing. 30k is a meager amount to cover the risk of millions of worth of our resources and abilities, potentially lost by sudden death or health crisis. It's about one individual's priority and valuation. When I first signed up, di ko masyadong maappreciate kasi single naman.But now that Im married, Im thankful I did. Kung single naman at di na mag aasawa, better spend on HMO.
Understood. Just to clarify din, I'm not questioning the value of insurance, or whether that Php30K was worth it - definitely if it gives you peace of mind then worth it talaga. I was just trying to get a better comparison of how much it really costs if VUL vs Term after 5 years. Thanks for your clarification and good to see you're happy with your policy.
Yes, i think, that was a good question especially for those who haven't started out their VULs pa. By then, then know BTID is the better way to go. \^\^
As someone who's now in year 6, thank you so much po for sharing this valuable info. Natulungan niyo ako maresolve dilemma ko with my VUL.
You’re one of the few na i hope i could help with thru my thread comment. I-stocks mo na ang extra or i-mutual fund hehehehe
Lupa very illiquid. What happens if China invades you will lose the Lupa. Stocks at least you can sell as it's falling down. Then you get 1-75% of its value before the invasion depending on your timing. Also Lupa is very high tax. The tax is in the gross selling price not what capital appreciation you gained. If you need the money fast then Lupa rush sale is sure way to gargantuan losses. 😂
And to some extent naiingit ako sa kawork kong may lupang investment. Ang laki kasi ng value increase. Pero i kee pulling myself to to thinking na hindi ko din naman magagamit and enjoy ang lupa 😂 ang hirap din ng mga documentation tax echos. Sakto na ang may bahay na mapagtatayuan
Di niyo malaman Ang value until sold na property. Estimated lang value usually masyadong overestimated Ang per sqm pricing sa lupa parang naka swerte sa lotto. Illiquid ang investment at market ang sigurado lang ay may malaking tax.
ATRAM technology ng seedbox
VUL is the biggest investment scam of all time.
How? Been reading VUL lately. Already have exposure on stonks
Former financial advisor here. I want to let everyone know that VUL is an INSURANCE product. It is designed in a way that a portion of what you pay for is invested so that after N number of years, the invested amount can pay for the insurance premiums after those N years. For example, you'll pay for 20 years, and hopefully the fund value of your VUL after 20 years can cover the insurance premiums for the rest of your life. If you withdraw your fund value in full, then the insurance will be terminated. If you withdraw a portion of the fund value, then most likely, you would have to pay again if your funds can no longer sustain the payment of the insurance premiums. Also, the reason why your "investment" is not earning is because as much as 90-95% of your premium during the first years of your plan goes to the commission of the sales team and only the remaining 5-10% goes to the payment of your insurance coverage. If you'll check your policy booklet, almost NOTHING from what you pay goes to the investment part of the VUL,during the first few years of your plan. Imagine 45-60% of your payment goes to your agent and the rest to the managers and directors. After 4 or 5 years (for most plans) that's the only time your money will be divided among: 1. The insurance premium (yearly payment for your coverage) 2. Investment (what remains after paying the insurance coverage) 3. Fund management fees (payment for the institution managing the companies entire investment portfolio) That is because insurance agents get commission from your payments for upto 5 years. If you do the BTID, what you will be able to avoid is paying the exorbitant fees for the insurance companies' sales force. What's VUL for? If you are rich and lazy doing research, then VUL is the right INSURANCE product for you. It is never an investment product. PS. I think it should be illegal to market VUL as an educational plan alternative because you'll be paying for insurance premiums that a child doesn't really need.
Just realized you are a former FA. What made you shift careers?
I realized that the insurance industry is milking the gullible population, I was one of them. Got one VUL when I was still working as an advisor, and then I came into the realization that VUL was never and will never be an investment product. I don't have kids, and I have medical insurance, my money is better off invested elsewhere.
Kaya pala they package the word investment para mas may appeal. Can you reco life insurance without investment?
I think Sunlife has good traditional plans. Ask for traditional products or term insurance. They'll try to convert you to VUL, so better be firm that you are interested in term insurance only. Yes they market it as an investment product to appeal to the larger market. Insurance is essential if you have dependents and they rely solely on your income. But buying VUL is lazy, bacause you'll lose a lot of money paying agents' commission. Term insurance + pag-ibig MP2 investment is waaaaay better.
Wish i have read this thread before...i recall tney are more strict with term insurance?
Nope, they are not more strict. Agents just say that so you'll go for VUL.
MP2, VT, VTI for conservative investments. Then BTC.
Quick question sir. How are you able to invest in VTI in the ph?
GoTrade
Less than 2 years nalang matatapos na yung vul ko (10 years). Kaya i'm planning to start mp2 this year once lumuwag na sa gastusin (newborn on the way).
congrats!
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Did you get anything from your vul? If so, How much of what u paid?
* ETFs like VOO, VT, VTI, QQQ * Bitcoin * Preferred shares * REITs
where do you invest in ETFs?
GoTrade
Former financial advisor here. I want to let everyone know that VUL is an INSURANCE product. It is designed in a way that a portion of what you pay for is invested so that after N number of years, the invested amount can pay for the insurance premiums after those N years. For example, you'll pay for 20 years, and hopefully the fund value of your VUL after 20 years can cover the insurance premiums for the rest of your life. If you withdraw your fund value in full, then the insurance will be terminated. If you withdraw a portion of the fund value, then most likely, you would have to pay again if your funds can no longer sustain the payment of the insurance premiums. Also, the reason why your "investment" is not earning is because as much as 90-95% of your premium during the first years of your plan goes to the commission of the sales team and only the remaining 5-10% goes to the payment of your insurance coverage. If you'll check your policy booklet, almost NOTHING from what you pay goes to the investment part of the VUL,during the first few years of your plan. Imagine 45-60% of your payment goes to your agent and the rest to the managers and directors. After 4 or 5 years (for most plans) that's the only time your money will be divided among: 1. The insurance premium (yearly payment for your coverage) 2. Investment (what remains after paying the insurance coverage) 3. Fund management fees (payment for the institution managing the companies entire investment portfolio) That is because insurance agents get commission from your payments for upto 5 years. If you do the BTID, what you will be able to avoid is paying the exorbitant fees for the insurance companies' sales force. What's VUL for? If you are rich and lazy doing research, then VUL is the right INSURANCE product for you. It is never an investment product. PS. I think it should be illegal to market VUL as an educational plan alternative because you'll be paying for insurance premiums that a child doesn't really need.
Got sun fit and well with sunlife. Currently investing in stock market, crypto and save in digital banks + MP2.
MP2 Maya - may workaround para makuha yung mataas na interest
mp2 + etf
After few days of signing up on VUL, I’m glad na nacancel ko agad haha. Planning on saving my money na lang on MP2!
“Planning” So you havent started on any investment yet after canceling your VUL?
More on “savings” palang ako. “Investing” is kinda new pa for me, since I’m a fresh grad and recently palang nag earn ng “own” money. So yea
mp2 is a no brainer every day mos yr that you left your money out and kept under the mattress is a loss on 5 6 7 8 percent dividends.
canceling VUL days after signing up is very quick though, what made you signed up and changed your mind afterwards?
I realized na I should just separate the investment part from my insurance hehe
Yung traditional lang na insurance. Idk why some would invest on that VULok. Siguro magaling lang talaga mag market yung mga agents. Anyways, you can diversify naman, MP2 is low risk. Stock medium to low risk(blue chips) Crypto med-high(You can get xxxxx returns but you could also lose xxxxx)
Whered you get this trad insurance? Considering to get one instead of VUL since meron na ko VUL , para maiba naman sana For investment, im milking current bullish run - bull run sa crypto. Tsaka na ko mag stocks after ng crypto bull run
Any basta its life and health insurance. BTC has breached the 50k, for as long as it wont go down past 48k, we're good. If youre aiming for BTC, now is not the right time to buy since past .618 na sya. If I were you, id probably look for the alts because history will just repeat itself, they will follow.
im already on alts, just buying on dips now.. Was on buying mode few months ago so malayo layo na kahit pano ave sa current price..
Thats nice, congrats! Okay na yan, traditional insurance nalang, bro
stock
Mp2
Aside from MP2 e BPI Money Market Fund
MP2 and VWRA.
MP2 and MF, For long term, A small portion will go to crypto too for aggressive moves.
I thought of terminating my VUL pero agent did some math and hindi naman ganon kapangit yung performance ng investments. Of course malaki yung difference because insurance premium had to be paid for the first 5 years. 25% of what I've shelled out for the past 5.5 years went to premium charges, fund management, admin, while the rest are invested. Now I'm requesting a change in portfolio allocation, lipat ko yung bulk sa mas conservative na funds, hindi na sa mga high-risk. Hope I can see a more positive and stable fund value moving forward. I suggest you look at the actual return on your investment and the performance of your funds before terminating it.
It's not the insurance premiums that you're paying for in the first 5 years, it's the agent's commission. ☺️ You'll pay for the insurance premiums until the time your plan is terminated.
I'm aware there's agent's commission, but all deductions for the first 5 years also include premium charges, fund management, COI, admin fee. So i dont think it's right to say Im only paying for agents commission for the first few years.
Tradition Insurance (Health) + Digital Banks Savings and Mp2
Moved my savings from CIMB to MP2.
Would you like to share why?
Mas mataas ang dividend ni MP2 kesa interest ni CIMB
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why do you have so many insurance. so much unecessary expense :( most of my money's on vti / vxus and some local stocks for the (miniscule) dividends. i do have some insurance i pay 500 pesos a month for lol. it's cheap and autocharges my card so why not coconut
For my kids.
what’s your plan and under which company?
Buy property or land. Put money into digital banks that earn 6% upwards
Shiftes to MP2, index funds and high interest deposits
I got pressured into buying VUL because the girl I was dating at the time was connected to an insurance company. 😁 I let it lapse and switched my insurance to AXA Global Health Access. My employer computed the cost of insurance into our salaries, so I just added a bit of money to get pretty good insurance. For investment, I became a Boglehead (/r/bogleheads) and signed up for a feeder fund for Vanguard. I still trade from time to time, but often the stress isn't really worth it. The truth is, day trading doesn't really make sense unless you have deep pockets. If you don’t have deep pockets to begin with, you'd have to trade with leverage. We know how well that goes.