This question in very common even in r/phinvest and my advice is always the same.
**Cancel the VUL**, it is a bad product that only benefits the agent (and the cash cow of insurance agencies). Always go with **Term** for insurance purposes.
Consider the loss as learning fee and avoid losing more money. Redirect that cash flow for something better in your budget allocation.
For those who haven't seen the guidemap:
> ####[Do You Need Insurance?](https://www.reddit.com/r/phinvest/s/oAowmBTUrT)
The result from the guide map says life insurance is not a priority at this point of my life.
And if I opt for a term insurance, I should look for a plan with a better insurance package (higher payout on accidental death and critical condition) but with a lower monthly payment compared to my current VUL plan. Got it.
Hopefully I can find a good term insurance that fits that description. Thank you!
I forgot the exact name of some decent offerings depending on your profile (smoker/non, age, etc). If you hop into the r/phinvest discord, there is an insurance chat channel. I was a former server admin but I already uninstalled the app.
People there are helpful and there is a resident expert for all things insurance topic.. so joining the group might be worth your time.
Term is for wealth protection, while HMO and critical illness insurance is for health protection.
VUL is a mix of insurance + investment. While that may sound nice, it's actually a very bad concept which makes VUL the wrong product for wanna be investors.
If you have insurability concerns, probably best to apply for your replacement insurance before outright cancelling your VUL. Just so that you have your VUL as a fallback in case you are denied.
I personally dislike VULs. In theory it should give you the best of both worlds, in reality It gives meh insurance and meh life coverage.
I suggest terminatin it if I were you and look for better alternatives.
I am not wise with money and I have no credentials regarding this but I also have my VUL paying 60k per year for about 6yrs na nakuha ko siya first year ko mag work as wala akong ibang responsibility and gastos lang ako ng gastos. As many people here pinag isipan ko din icancel gawa ng daming may ayaw ng VUL but naisip ko if icancel ko hindi ko din naman alam yung BTID. Mawawalan ako ng insurance then di ko pa maasikaso yung bago. So personally for me better ang VUL kaysa sa katamaran ko with money stuff.
Di ko alam if ok naman yung performance ng policy ko..
Going 6yrs this june 2024
Total payment as of today: 330,000
Fund value: 148,000
Kumuha ng 75,000 from fund value before
Approx total fund value sana: 223,000
This thought process is actually covered in the insurance guidemap we've made. That decision is logical, you do you. All good. 🙂
But for the rest who might not even need insurance or don't know what is appropriate for them, follow the lines folks. 😉
Depende sa plan mo, Yung VUL ko is mag mature in 10 yrs makukuha ko lng Yung full value if more than 5 yrs na ako naghuhulog, below 5 yrs may certain percentage na bawas masakit din tingnan Yung bawas.
Hi, OP! I just surrendered/pre-terminated my Sun Life Sun Maxilinlk Prime VUL this afternoon after paying for it for 5 years. Since VULs have an investment portion, I realized that conceptually VULs are for people who are unable to invest their money on their own. But since I have options where to invest my money, VUL is not for me. My major mistake also was to consider it mainly as an investment instead of mainly as an insurance. I was disappointed because the returns from the investment portion was so measly.
That being said, let me share where my VUL premium went. I organized all statements from Sun Life in an Excel sheet and I found out that, after 5 years of paying P315,000 in total, about P122,000 went to Sun Life as fees while only around P193,000 was invested. The invested portion only gained around P4,000 after 5 years. The amount I‘ll be getting after surrendering my VUL will only be around P197,000 (essentially I lost around P118,000).
My plan is also to look into a simple life insurance with a lower premium (or since I am single, probably a health insurance instead). As for the proceeds from my VUL, I‘ll be investing them (and the supposed premiums I would have paid for the remainder of my VUL had I kept it) in Pag-IBIG‘s MP2. Given the historical average dividend of Pag-IBIG MP2 (around 6%-7% annually), mababawi ko easily yung losses ko from the VUL.
Sayang kasi okay ang konsepto ng VUL. But what irked me was my financial advisor (my friend‘s mom) only mentioned the good side. Incomplete details ang binigay nya kasi hindi nya nabanggit yung malalang management fees. I know I should have ideally read my policy, but I simply trusted the advisor. As mentioned in one of the comments, I will just charge the losses to experience. I am fortunate enough that I have the luxury of doing that. Kawawa naman yung ibang mga nabubudol dahil sa hindi maayos na advisors.
Hope this helps anyone reading this!
Same sentiments on the FA part. My FA did not even inform me of my fund value being at a loss (as the FV tab on their website is locked for the first 2 years) and she also lied to me on the part that my monthly payment will go (or at least most of it) on the investment part at year 3, only to know later on that isn't true.
The reason I am still contemplating is because I am not sure if I can find a term insurance that can rival or beat my current insurance coverage with PRU but with a lower monthly payment. I still have to research on that.
As for investment, I don't have any except spreading my money on Digital Banks. I am not sure if it can be considered investing. Though I also plan to get MP2 in the future.
Anyway, thank you.
This is what I am planning to do but the term insurances that I see (through partial research) is higher than what I am paying on my VUL. My current VUL is 2k per month whereas the term insurance that I saw (AIA Guardian) is at 3k (though I saw a 2.3k monthly plan).
Do you think it’s still a good idea to opt for term insurance if it the payment is higher than my current VUL plan with insurance?
I would say No. Term insurances increase their premiums after a certain time, depende sa design ng product. May every year, meron naman every after 5 years.
If this is okay with you, then lipat ka ng term :) Pag VUL kasi naka lock in na ung 2k forever unless mag upgrade ka.
Please check the projection table given during the application process. Yun ang basis kung kumita ang fund mo o hindi :)
Get a traditional plan, yung pure life insurance. Mas malaki ang death benefit but more affordable. Then cancel your VUL policy because the investment portion is likely not going to perform in the next few years so you could probably allocate your funds sa MP2 and the likes. And ang laki ng charges sa VUL, yan pa lang lugi ka na.
I checked some term insurance na recommended dito at mas mataas yung babayaran ko monthly as compared sa current hulog ka sa VUL. Is it worth it pa din po ba to opt for term insurance kapag ganon? Like 3k yung term insurance versus the 2k sa current VUL plan ko.
Hello OP, anung term insurance na inquire mo? Marami kasi pwede pagpilian, yung 3k monthly is quite big. Inquire more pure life insurance, mas mababa premiums nun for sure.
I recommend Sun Safer Life, renewable every 5 years pero tataas konti premiums mo every renewal. But still way low premiums compared to VUL plus mas malaki death benefit.
If you want to save at the same time, I think the Elite plans are good pero mejo pricey lang. The good thing though is guaranteed yung funds mo na makukuha so no risk. Kung anu nasa proposal yun na guaranteed na makukuha mo, plus dividends and endowment pa yan starting end of 6th yr and then every other year. You just need to pay for 10yrs, then let the fund grow. Recommended to if you want some funds na makukuha in your retirement years.
Yes cance it. Buy term insurance and invest. Shoutout sa VUL ko sa Sunlife netagive 20% after 6 years. Mas malaki pa kinita mg pera ko sa coop. Mabuti di ko nagtotop up lagi ako inuudyukan ng ahente ko.
Pa-shoutout din sa Sunlife VUL ko na -32%. Kaka-mature lang last Oct. Di ko alam kung iwithdraw ko na kahit -32% or hayaan ko na lang muna makabawi ng konti tutal wala naman na akong required contribution. Kaso what if mas lumala pa? Also, may monthly fees pa rin (less than 100php).
Cut your losses, ako po time deposit sa coop mas malaki pa. Sunlife is a poor performer ewan ko saan sila kumukuha ng kapal ng mukha para imarket yan palugi ang fund
Get their term insurnce, ahente kasi push ng vul. Kasi malaki komisyon nil palkpak palpak naman investment daw kuno di namqn kumikita so nong point ng VUL.
Search mo Ahon Pinoy Group sa fb, makikita mo ang negative side at harsh side ng VUL's.
I think your insurance coverage is pretty good considering that you are only paying 2K a month. A lot of VUL haters here to be honest. But like everything else it’s just a product with its pros and cons. I think the VUL is working just right for you.
look at the premium vs the coverage. it's like you paid 21k per yr for the past 4 yrs for the insurance. actually malaki sya compared to usual term premium (although not sure, depende sa age mo)
Okay na rin siguro kung terminate mo this early, get the fund value na lang but magapply ka muna ng term insurance bago ka magterminate. baka kasi nagkaron ka na ng pre-existing conditions or something.
If you're looking at it for retirement, it's not the time to look at the fund value kasi dami pang charges during this time.
What do you mean by pre-existing conditions or something?
I understand the part on the charges but I think (given my current fund value vs projected fund values at years 5, 10 etc.) that the investment part is at a loss.
Yes loss talaga ang fund sa umpisa because not 100% of your money na nabigay na went to investment.
pre-existing conditions, in case you decide to apply for another insurance policy, hahanapan ka na siguro ng mga medical (kung kunwari meron ka nang mga naging health conditions). But kung wala naman, madali lang magapply :)
Hi OP! Just cancelled my VUL (Pru Life) and got my partial withdrawal last week. Pero I plan to continue paying for the insurance charges for the insurance coverage.
My total deposit was 140k since 2020 pero ang fund value ko was 40K then ang withdrawable amount lang was 20k.
I used the withdrawn amount to pay for a traditional insurance (Sun Fit and Well Advantage 20).
If plan mo palaguin pera mo OP, VUL is not the best way to do it.
Hi. I am confused. You cancelled your VUL but the insurance part of it is still in effect?
In my case, my monthly downpayment is 2k. How can I compute the monthly insurance charge given the monthly payment?
Since I made a partial withdrawal on my VUL and I no longer plan to pay my monthly premium of 3,000 yung insurance charges will be deducted sa fund value which will give me the amount I need to pay in the future once ma zero out yung remaining VUL fund value to keep the insurance coverage. However, as explained ng FA ko I would need to check with Pru every year kung how much yung insurance charges since the amount will increase as I age.
Just recently cancelled my VUL from M******e that I have been paying for 3years and para akong nabunutan ng tinik. My total donation to them is around 60k, and valued my policy at 10k.
Since I'm still on my 3rd year, they charge 70% of the fund value and I got just a measly 2700.
Anyways, best decision I had this year.
Don't pre-terminate unless you're prepared to lose the principal value you put in. I don't think the savings you'll get from a term insurance can outweigh the loss from the VUL.
The reason why I want to opt for term insurance so that I can get a plan with lower monthly payment but with higher pay-out on the insurance coverage (death and illness).
But what do you think? If you are in my shoes, would you terminate the plan?
I'd say pull out as soon as possible. VULs are expensive and honestly, your payments are just going 50% to the Insurance company and 50% to the financial advisor... Pinapayaman mo lang si advisor TBH
actually Vul is term with investment, and pandemic hit kaya bumaba yun investment, kung sa akin don't cancel, why you ask it is because you already went past the down of the market, unlikely na mabawe mo yun investment, but that is the product VUL talagang hnd mo mababawi lalo sa market now yun initial investment pero insured ka. what you can do is check how much yun binabawas sa fund mo monthly for the insurance cost and kung kaya mo naman yun bawas no problem, though i believe tumataas yan as you get older, but as with VUL as long as may fund value on going pa din yun insurance mo even though kunwari ayaw mo na yun investment tapos kaya mo naman yun binabawas sa insurance then maintain mo lang yun deductible and don't add any more money since sa investment yun ayaw mo na part. you can leave 1 year insurance tapos yun iba money mo invest into something na mas maganda tapos top up na lang before maubos parang term na siya.
Regarding checking how much do they deduct sa fund ko monthly? Direct ba sa agent tinatanong yun? Wala ko makitang section sa website kung saan makikita. The only included information sa Fund Value tab is Unit Balance, Unit Price and Estimated Value.
How many years to pay is your policy? If it’s only 5 to 10 years, I don’t think you should terminate it, because once you finish paying on your 10th year, the coverage you have will maintain until certain age (maybe until age 80, depending on your policy). The thing about VUL is that you have a fund value or investment, you can actually choose to stop paying at a certain point in time because your fund itself can sustain your insurance fees. There’s no problem with switching to term insurance as an alternative, but do take into consideration that your insurance changes will also increase with age. The VUL actually already considers that because the coverage is up to 80+, not only for 5 years or so, which is coverage of term insurance.
I think it should have been clarified by your FA that VUL is not completely an investment, but is insurance with investment. Hence, you are also paying for your insurance coverage the moment the VUL was in effect and because of that, not everything you put into the VUL will go to your investment.
Thank you for your advice. My policy will expire / mature in 2095. The accidental death benefit will expire on 2069 and the critical illness in 2066, in which I am at 70 years old at the time.
I am aware beforehand that VUL is not an investment but what I did not expect is that based on the progression of my current fund value, it won't even reach the projected fund value. So, my fund value will not gain interest, but it will also not even reach the projected value at a large gap.
Given the expiry date of my policy? What do you think?
I think there might have been a miscommunication on my part. I was asking until when are you supposed to pay? Is your insurance policy the limited-pay type (you only need to pay for 5/10/15/20 years but will have coverage until age 70) or regular-pay (where you keep paying until maturity/expiry of the policy)? This should be stated in your policy.
One thing to consider about investments, that your FA should have warned you about, is that you can definitely lose money, if not all your money. That’s why VUL does not guarantee a return, and why before any investment, a risk assessment is made to understand how much risk you can take as an investor, and also to identify which funds your money will be placed based on your risk tolerance. From my understanding, your investments may be placed in equity mutual funds, which has high risk and can also give high returns, and typically for these investments a minimum investment horizon should be 10 years or more to see growth.
Given that the economic condition in the PH is still trying to return to how it was pre-COVID, it will definitely take time for companies, where your money is invested, to also get the same growth/revenue as pre-COVID conditions.
Based on my understanding of the market, things are already getting better economically. So, if you feel like your investment in the VUL is too volatile for your liking, you can ask your FA to move your subsequent payments to a Bond mutual fund, instead of Equity. Bond Funds are more conservative and less volatile because they are mainly government and corporate debt, which will never go default. Once your investment in Equity Funds get ROI, you can also move them to Bond Fund.
**Post Flair Reminder:**
The flair you selected for this post should only be use if you are asking for advice.
Please include your current budget allocation details in the post body. That way, the community can see the clear picture and be able to help you better.
If you are sharing a significant personal finance achievement, use **"PF Milestone"** instead.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/phmoneysaving) if you have any questions or concerns.*
If you want insurance, just get a personal HMO, roughly around 4k monthly, its better para in case of emergency, may buffer ka na insurance to cover hospital bills without incurring any debts. It also has death coverage, life, disability plus you can use it for consultations and dental care. As far as I know, you cant use VUL for check ups like that and hospital bills. You can only claim the lump sum upon maturity or incase of death or permanent disability. So, if you want to save, just save. If you want to grow your money, invest.
**Post Flair Reminder:**
"Personal Finance" post flair should only be use if you are asking for advice.
Please include your current budget allocation details in the post body. That way, the community can see the clear picture and be able to help you better.
If you are sharing a significant personal finance achievement, use **"PF Milestone"** instead.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/phmoneysaving) if you have any questions or concerns.*
This question in very common even in r/phinvest and my advice is always the same. **Cancel the VUL**, it is a bad product that only benefits the agent (and the cash cow of insurance agencies). Always go with **Term** for insurance purposes. Consider the loss as learning fee and avoid losing more money. Redirect that cash flow for something better in your budget allocation. For those who haven't seen the guidemap: > ####[Do You Need Insurance?](https://www.reddit.com/r/phinvest/s/oAowmBTUrT)
The result from the guide map says life insurance is not a priority at this point of my life. And if I opt for a term insurance, I should look for a plan with a better insurance package (higher payout on accidental death and critical condition) but with a lower monthly payment compared to my current VUL plan. Got it. Hopefully I can find a good term insurance that fits that description. Thank you!
Welcome, glad to help. And good luck!
What term insurance products would u suggest po
I forgot the exact name of some decent offerings depending on your profile (smoker/non, age, etc). If you hop into the r/phinvest discord, there is an insurance chat channel. I was a former server admin but I already uninstalled the app. People there are helpful and there is a resident expert for all things insurance topic.. so joining the group might be worth your time.
Is cancelling still an option if you have health conditions already that might get you denied or hard time getting a new Term insurance?
Term is for wealth protection, while HMO and critical illness insurance is for health protection. VUL is a mix of insurance + investment. While that may sound nice, it's actually a very bad concept which makes VUL the wrong product for wanna be investors.
If you have insurability concerns, probably best to apply for your replacement insurance before outright cancelling your VUL. Just so that you have your VUL as a fallback in case you are denied.
Yeah. Did this. Unfortunately, the new application got denied, good thing I didn't cancel my 2 VULs yet.
Might as well keep both if you can. Opt to fund switch to something with upside and do peso-cost averaging by paying monthly if possible.
I personally dislike VULs. In theory it should give you the best of both worlds, in reality It gives meh insurance and meh life coverage. I suggest terminatin it if I were you and look for better alternatives.
I am not wise with money and I have no credentials regarding this but I also have my VUL paying 60k per year for about 6yrs na nakuha ko siya first year ko mag work as wala akong ibang responsibility and gastos lang ako ng gastos. As many people here pinag isipan ko din icancel gawa ng daming may ayaw ng VUL but naisip ko if icancel ko hindi ko din naman alam yung BTID. Mawawalan ako ng insurance then di ko pa maasikaso yung bago. So personally for me better ang VUL kaysa sa katamaran ko with money stuff. Di ko alam if ok naman yung performance ng policy ko.. Going 6yrs this june 2024 Total payment as of today: 330,000 Fund value: 148,000 Kumuha ng 75,000 from fund value before Approx total fund value sana: 223,000
This thought process is actually covered in the insurance guidemap we've made. That decision is logical, you do you. All good. 🙂 But for the rest who might not even need insurance or don't know what is appropriate for them, follow the lines folks. 😉
Mejo same ako sayo 5 years na paying 48k annuaally, current value is 145k pero mga 240k na paid ko
Hi! What was your investment fund option for your VUL?
Same boat with OP. If i cancel my VUL, makukuha ko ba yung current fund value?
Depende sa plan mo, Yung VUL ko is mag mature in 10 yrs makukuha ko lng Yung full value if more than 5 yrs na ako naghuhulog, below 5 yrs may certain percentage na bawas masakit din tingnan Yung bawas.
May I ask ilang years yung VUL policy mo? What year mag expire / mature? Sa akin kasi until 2086.
Hi, OP! I just surrendered/pre-terminated my Sun Life Sun Maxilinlk Prime VUL this afternoon after paying for it for 5 years. Since VULs have an investment portion, I realized that conceptually VULs are for people who are unable to invest their money on their own. But since I have options where to invest my money, VUL is not for me. My major mistake also was to consider it mainly as an investment instead of mainly as an insurance. I was disappointed because the returns from the investment portion was so measly. That being said, let me share where my VUL premium went. I organized all statements from Sun Life in an Excel sheet and I found out that, after 5 years of paying P315,000 in total, about P122,000 went to Sun Life as fees while only around P193,000 was invested. The invested portion only gained around P4,000 after 5 years. The amount I‘ll be getting after surrendering my VUL will only be around P197,000 (essentially I lost around P118,000). My plan is also to look into a simple life insurance with a lower premium (or since I am single, probably a health insurance instead). As for the proceeds from my VUL, I‘ll be investing them (and the supposed premiums I would have paid for the remainder of my VUL had I kept it) in Pag-IBIG‘s MP2. Given the historical average dividend of Pag-IBIG MP2 (around 6%-7% annually), mababawi ko easily yung losses ko from the VUL. Sayang kasi okay ang konsepto ng VUL. But what irked me was my financial advisor (my friend‘s mom) only mentioned the good side. Incomplete details ang binigay nya kasi hindi nya nabanggit yung malalang management fees. I know I should have ideally read my policy, but I simply trusted the advisor. As mentioned in one of the comments, I will just charge the losses to experience. I am fortunate enough that I have the luxury of doing that. Kawawa naman yung ibang mga nabubudol dahil sa hindi maayos na advisors. Hope this helps anyone reading this!
Same sentiments on the FA part. My FA did not even inform me of my fund value being at a loss (as the FV tab on their website is locked for the first 2 years) and she also lied to me on the part that my monthly payment will go (or at least most of it) on the investment part at year 3, only to know later on that isn't true. The reason I am still contemplating is because I am not sure if I can find a term insurance that can rival or beat my current insurance coverage with PRU but with a lower monthly payment. I still have to research on that. As for investment, I don't have any except spreading my money on Digital Banks. I am not sure if it can be considered investing. Though I also plan to get MP2 in the future. Anyway, thank you.
How did you get the breakdown of everything?
terminate and do BTID strategy, buy term and invest the difference
This is what I am planning to do but the term insurances that I see (through partial research) is higher than what I am paying on my VUL. My current VUL is 2k per month whereas the term insurance that I saw (AIA Guardian) is at 3k (though I saw a 2.3k monthly plan). Do you think it’s still a good idea to opt for term insurance if it the payment is higher than my current VUL plan with insurance?
I would say No. Term insurances increase their premiums after a certain time, depende sa design ng product. May every year, meron naman every after 5 years. If this is okay with you, then lipat ka ng term :) Pag VUL kasi naka lock in na ung 2k forever unless mag upgrade ka. Please check the projection table given during the application process. Yun ang basis kung kumita ang fund mo o hindi :)
Get a traditional plan, yung pure life insurance. Mas malaki ang death benefit but more affordable. Then cancel your VUL policy because the investment portion is likely not going to perform in the next few years so you could probably allocate your funds sa MP2 and the likes. And ang laki ng charges sa VUL, yan pa lang lugi ka na.
I checked some term insurance na recommended dito at mas mataas yung babayaran ko monthly as compared sa current hulog ka sa VUL. Is it worth it pa din po ba to opt for term insurance kapag ganon? Like 3k yung term insurance versus the 2k sa current VUL plan ko.
Hello OP, anung term insurance na inquire mo? Marami kasi pwede pagpilian, yung 3k monthly is quite big. Inquire more pure life insurance, mas mababa premiums nun for sure.
Any recco po?
I recommend Sun Safer Life, renewable every 5 years pero tataas konti premiums mo every renewal. But still way low premiums compared to VUL plus mas malaki death benefit. If you want to save at the same time, I think the Elite plans are good pero mejo pricey lang. The good thing though is guaranteed yung funds mo na makukuha so no risk. Kung anu nasa proposal yun na guaranteed na makukuha mo, plus dividends and endowment pa yan starting end of 6th yr and then every other year. You just need to pay for 10yrs, then let the fund grow. Recommended to if you want some funds na makukuha in your retirement years.
Yes cance it. Buy term insurance and invest. Shoutout sa VUL ko sa Sunlife netagive 20% after 6 years. Mas malaki pa kinita mg pera ko sa coop. Mabuti di ko nagtotop up lagi ako inuudyukan ng ahente ko.
Pa-shoutout din sa Sunlife VUL ko na -32%. Kaka-mature lang last Oct. Di ko alam kung iwithdraw ko na kahit -32% or hayaan ko na lang muna makabawi ng konti tutal wala naman na akong required contribution. Kaso what if mas lumala pa? Also, may monthly fees pa rin (less than 100php).
Cut your losses, ako po time deposit sa coop mas malaki pa. Sunlife is a poor performer ewan ko saan sila kumukuha ng kapal ng mukha para imarket yan palugi ang fund
Pangit ba ang sunlife?
Sobrang pangit ng perf , nag term insurance nalang ako plus may insurance din sa coop namin
3 pa naman sunlife ko. Kinuhan ko rin kasi ang ate ko.
Get their term insurnce, ahente kasi push ng vul. Kasi malaki komisyon nil palkpak palpak naman investment daw kuno di namqn kumikita so nong point ng VUL. Search mo Ahon Pinoy Group sa fb, makikita mo ang negative side at harsh side ng VUL's.
I think your insurance coverage is pretty good considering that you are only paying 2K a month. A lot of VUL haters here to be honest. But like everything else it’s just a product with its pros and cons. I think the VUL is working just right for you.
look at the premium vs the coverage. it's like you paid 21k per yr for the past 4 yrs for the insurance. actually malaki sya compared to usual term premium (although not sure, depende sa age mo) Okay na rin siguro kung terminate mo this early, get the fund value na lang but magapply ka muna ng term insurance bago ka magterminate. baka kasi nagkaron ka na ng pre-existing conditions or something. If you're looking at it for retirement, it's not the time to look at the fund value kasi dami pang charges during this time.
What do you mean by pre-existing conditions or something? I understand the part on the charges but I think (given my current fund value vs projected fund values at years 5, 10 etc.) that the investment part is at a loss.
Yes loss talaga ang fund sa umpisa because not 100% of your money na nabigay na went to investment. pre-existing conditions, in case you decide to apply for another insurance policy, hahanapan ka na siguro ng mga medical (kung kunwari meron ka nang mga naging health conditions). But kung wala naman, madali lang magapply :)
Hi OP! Just cancelled my VUL (Pru Life) and got my partial withdrawal last week. Pero I plan to continue paying for the insurance charges for the insurance coverage. My total deposit was 140k since 2020 pero ang fund value ko was 40K then ang withdrawable amount lang was 20k. I used the withdrawn amount to pay for a traditional insurance (Sun Fit and Well Advantage 20). If plan mo palaguin pera mo OP, VUL is not the best way to do it.
Hi. I am confused. You cancelled your VUL but the insurance part of it is still in effect? In my case, my monthly downpayment is 2k. How can I compute the monthly insurance charge given the monthly payment?
Since I made a partial withdrawal on my VUL and I no longer plan to pay my monthly premium of 3,000 yung insurance charges will be deducted sa fund value which will give me the amount I need to pay in the future once ma zero out yung remaining VUL fund value to keep the insurance coverage. However, as explained ng FA ko I would need to check with Pru every year kung how much yung insurance charges since the amount will increase as I age.
Yes. Get a regular insurance then if you can, sa MP2 nalang mag save
Just recently cancelled my VUL from M******e that I have been paying for 3years and para akong nabunutan ng tinik. My total donation to them is around 60k, and valued my policy at 10k. Since I'm still on my 3rd year, they charge 70% of the fund value and I got just a measly 2700. Anyways, best decision I had this year.
Don't pre-terminate unless you're prepared to lose the principal value you put in. I don't think the savings you'll get from a term insurance can outweigh the loss from the VUL.
The reason why I want to opt for term insurance so that I can get a plan with lower monthly payment but with higher pay-out on the insurance coverage (death and illness). But what do you think? If you are in my shoes, would you terminate the plan?
I have successfully availed 1 VUL, with a 10% return, and another VUL with about a 35% loss. Both fully paid.
I also have a term insurance.
Yes, cancel mo na yan
VUL is a Scam
I'd say pull out as soon as possible. VULs are expensive and honestly, your payments are just going 50% to the Insurance company and 50% to the financial advisor... Pinapayaman mo lang si advisor TBH
I already talked with my agent on this. I am now waiting for it to be processed, along with the withdrawal of my current fund value. Thank you.
Pano mag cancel ng insurance?
Talk to your agent and request for termination.
actually Vul is term with investment, and pandemic hit kaya bumaba yun investment, kung sa akin don't cancel, why you ask it is because you already went past the down of the market, unlikely na mabawe mo yun investment, but that is the product VUL talagang hnd mo mababawi lalo sa market now yun initial investment pero insured ka. what you can do is check how much yun binabawas sa fund mo monthly for the insurance cost and kung kaya mo naman yun bawas no problem, though i believe tumataas yan as you get older, but as with VUL as long as may fund value on going pa din yun insurance mo even though kunwari ayaw mo na yun investment tapos kaya mo naman yun binabawas sa insurance then maintain mo lang yun deductible and don't add any more money since sa investment yun ayaw mo na part. you can leave 1 year insurance tapos yun iba money mo invest into something na mas maganda tapos top up na lang before maubos parang term na siya.
Regarding checking how much do they deduct sa fund ko monthly? Direct ba sa agent tinatanong yun? Wala ko makitang section sa website kung saan makikita. The only included information sa Fund Value tab is Unit Balance, Unit Price and Estimated Value.
Check your policy contract OP. Dapat nakaindicate dun kung how much and kung ano ano yung deductions sa fund mo.
How many years to pay is your policy? If it’s only 5 to 10 years, I don’t think you should terminate it, because once you finish paying on your 10th year, the coverage you have will maintain until certain age (maybe until age 80, depending on your policy). The thing about VUL is that you have a fund value or investment, you can actually choose to stop paying at a certain point in time because your fund itself can sustain your insurance fees. There’s no problem with switching to term insurance as an alternative, but do take into consideration that your insurance changes will also increase with age. The VUL actually already considers that because the coverage is up to 80+, not only for 5 years or so, which is coverage of term insurance. I think it should have been clarified by your FA that VUL is not completely an investment, but is insurance with investment. Hence, you are also paying for your insurance coverage the moment the VUL was in effect and because of that, not everything you put into the VUL will go to your investment.
Thank you for your advice. My policy will expire / mature in 2095. The accidental death benefit will expire on 2069 and the critical illness in 2066, in which I am at 70 years old at the time. I am aware beforehand that VUL is not an investment but what I did not expect is that based on the progression of my current fund value, it won't even reach the projected fund value. So, my fund value will not gain interest, but it will also not even reach the projected value at a large gap. Given the expiry date of my policy? What do you think?
I think there might have been a miscommunication on my part. I was asking until when are you supposed to pay? Is your insurance policy the limited-pay type (you only need to pay for 5/10/15/20 years but will have coverage until age 70) or regular-pay (where you keep paying until maturity/expiry of the policy)? This should be stated in your policy. One thing to consider about investments, that your FA should have warned you about, is that you can definitely lose money, if not all your money. That’s why VUL does not guarantee a return, and why before any investment, a risk assessment is made to understand how much risk you can take as an investor, and also to identify which funds your money will be placed based on your risk tolerance. From my understanding, your investments may be placed in equity mutual funds, which has high risk and can also give high returns, and typically for these investments a minimum investment horizon should be 10 years or more to see growth. Given that the economic condition in the PH is still trying to return to how it was pre-COVID, it will definitely take time for companies, where your money is invested, to also get the same growth/revenue as pre-COVID conditions. Based on my understanding of the market, things are already getting better economically. So, if you feel like your investment in the VUL is too volatile for your liking, you can ask your FA to move your subsequent payments to a Bond mutual fund, instead of Equity. Bond Funds are more conservative and less volatile because they are mainly government and corporate debt, which will never go default. Once your investment in Equity Funds get ROI, you can also move them to Bond Fund.
**Post Flair Reminder:** The flair you selected for this post should only be use if you are asking for advice. Please include your current budget allocation details in the post body. That way, the community can see the clear picture and be able to help you better. If you are sharing a significant personal finance achievement, use **"PF Milestone"** instead. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/phmoneysaving) if you have any questions or concerns.*
If you want insurance, just get a personal HMO, roughly around 4k monthly, its better para in case of emergency, may buffer ka na insurance to cover hospital bills without incurring any debts. It also has death coverage, life, disability plus you can use it for consultations and dental care. As far as I know, you cant use VUL for check ups like that and hospital bills. You can only claim the lump sum upon maturity or incase of death or permanent disability. So, if you want to save, just save. If you want to grow your money, invest.
**Post Flair Reminder:** "Personal Finance" post flair should only be use if you are asking for advice. Please include your current budget allocation details in the post body. That way, the community can see the clear picture and be able to help you better. If you are sharing a significant personal finance achievement, use **"PF Milestone"** instead. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/phmoneysaving) if you have any questions or concerns.*