son23kat said

7/28/2019 Son23kat Said

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Mutual funds vs. Variable Life

Mutual funds vs. Variable Life

Hi, just want to ask what would you guys choose to put in your money. I have a friend who is asking

me which is a better opportunity. She works in an insurance firm which offers variable life products.

But I am only aware of Mutual funds.

What is the difference?

How much will it cost if i buy only a life insurance?

Which one is indeed a better investment opportunity?

rationalist said:

May 7, 2008 09:08 AMDifferent companies add their own twist on their mutual fund and variable life (VUL) products. Pero

ang bottomline is that mutual fund products are investment component-only products, while VUL

contains both investment and insurance (madalas ko nakikita life insurance) components in a product.

Cost? Depende sa type of insurance na balak mo kunin, kadalasan kung gaano kataas ang makukuha

mong insurance, mas mahal ang babayaran. Minsan may mga VUL na annually babayaran mo (likeFlexilink in Sunlife), meron naman one-time lang at kung kelan ka mag-top up (sa Philamlife).

What is good in VUL is that 2-in-one product siya. You have investment and insurance na agad. Di ko

masasabi kung alin ang mas maganda, pero in my case I got a VUL and a pure investment mf product.As long as may isang insurance na tama ang value, ok na sa akin yun. Right now, puro investment

naman ako ngayon.

son23kat said:

May 7, 2008 12:01 PMI have a VUL with Sunlife and MF with First Metro. Sa VUL, malaki ang sales load tsaka 10 years to

pay *** kinuha ko. Sa First Metro, maliit lang *** sales load.

soy_rico said:

May 8, 2008 12:08 AM

i've done some reading, and basically most people say that its more proactical to buy an insuranceseparately, and then invest in mutual fund. snce in Variable life insurance, not all the money are put

into investments. how true?

son23kat said:

May 8, 2008 12:27 AM

^ in my case, partly true. kasi nga malaki sales load nila.

soy_rico said:


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May 12, 2008 10:24 PM

I've been thinking if its much better to buy a life insurance, and then invest the rest in Mutual Funds...

metropolitan said:

May 13, 2008 12:24 AM

also consider the expense ratio or management fees of mutual funds. i've seen local funds >3% ofNAV.

(US funds are more efficient.)

tweetybelle said:May 14, 2008 01:42 PM

buy the insurance separately from the mutual fund. so that there's transparency. walang mga hidden

fees. it's easy to be deceived in a 2-in-1 package kasi.

sxy_shandy said:

Aug 6, 2008 05:54 PM"buy term invest the difference".

VUL is term insurance primarily then with investment component - true, there are a bunch of charges,

some of them go away by the 6th year. afaik, at least, with sun life flexilink VUL. correction@rationalist, sunlife also has single-pay VUL.

i'd get both. VUL is cheap to start, kaya to start at around P12k/year. i also have money in equities and

in businesses

disclosure: my first love is personal finance, para naman magamit ang CPA license ko... then i chose toaffiliate with sun life so that i could learn more and offer proactive assistance.

DongViktor said:

Aug 7, 2008 01:54 PM

both are good it only depends on your investment intentions.

MF can be intented for short to medium term. VUL is for long term plus the protection of insurance. in

VUL you can choose/spread/diversify your investment in 3 categories: low risk; balanced fund;equities (high risk). VUL also has tax advantages compared to other insurances.

if your interested we have a free seminars on the concepts of savings & investments. we're not

endorsing any products on the seminar we just present the relationship of savings/investments to yourcurrent condition. there you can relate yourself on the reasons why you want or need to save.

pls reach me at 09189349870 or PM me.

God Bless,Dong


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janediwa said:

Aug 8, 2008 03:20 PM

Vul Or Mf???

To get pure mutual fund or a VUL???It would really depend on your situation.

PURE MUTUAL FUND is mainly for INVESTMENT while VUL is mainly for PROTECTION andsecondary for INVESTMENT.

If you are a breadwinner of your family like if your a family man supporting your wife and kids( muchmore kung plain housewife ang misis mo( as in plain talaga meaning...hindi sya marunong kumita o

dumiskarte para kumita ng pera) at lalung lalo na kung bata at maliliit pa ang kids mo), I would

definitely suggest that you geta VUL.

VUL because it is an insurance product that can at least protect the future of your kids and your wife in

any case anything bad happens to you whether death, total disability or critical illness, basta meadditional riders na kasama sa plan mo. VUL also because it is an investment product that cam

maximize the potential of your extra money just like in a mutual fund.

Kung situation mo yung sinabi ko, pag kukuha ka ng VUL, be sure na me TDB (TOTAL DISABILITY

BENEFIT waiver of premium). Pag me TDB rider kasi ang VUL mo, upon Total Disability( wherein

your income stops due to disability whether by accident or due to sickness) , self-completing na angplan mo kasi SUNLIFE na ang magbabayad ng premiums mo na dapat eh ikaw ang nagbabayad.

So, for example 10 yrs regular pay ang VUL mo sa Sunlife, then on the first year of paying eh na-

totally disabled ka,pag me TDB ang VUL mo, yung dapat na babayaran mo pa na ng 9 yrs, Sunlife naang magbabayad nun. So, pag tinignan mo yung fund values ng VUL mo, nadadagdagan pa rin yung

fund value mo kasi Sunlife ang nagbabayad ng regular premium mo. And remember, na ang FUND

VALUE eh pwede mong withdrawin. Wag mo lang withdrawin lahat para covered ka pa rin nginsurance.

VUL as compared to a traditional life insurance is far cheaper kasi for a 32 y/o male, P1M protection ,you just pay around P24/k per year. That's juz around P2k per month. Para ka lang nagbabayad ng

electric bill o fon bill mo then insured ka na ng P1M.

Pag traditional life insurance , for a 32 y/o male din , P1M coverage , nasa around P60k per year. So as

you can see, napakamura ng premium sa VUL. Kung yang 60k na yan , ilagay natin sa VUL, nasa

almost P3M ang coverage na mababayaran ng premium mo.

Sa VUL, me REGULAR PREMIUM AT EXCESS PREMIUM na tinatawag.

Sa REGULAR premium( this is for the insurance coverage) na binabayaran natin for a VUL, so hetoyung P24k/ year for a P1M face amount, me natitita dito na inilalagay natin sa investment ( whether

BOND, BALANCED o EQUITY FUND, MYFUTUREFUND).

Ang EXCESS PREMIUM( this is for the investment) , heto yung premium na gusto mong ilagay sa

investment fund. So for example, you want to put 100k for the investment fund you have chosen, less


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5% yan, so P95k would be used to buy units on the fund you have chosen. For every top-ups , 5% ang

premium charge.

PAg TERM insurance naman, mura nga sya for a big face amount kaso nasasayang ang money mo kasipag walang nangyari *** sa years na covered ka, tapon ang pera mo. KUng term insurance ang kinuha

mo at nagkataon na mahaba pala ang life mo, talo ka kasi palaki ng palaki ang premium as you grow

older at sayang yung mga naibayad mo na. Kung traditonal life insurance o VUL na lang sana angkinuha mo, insured ka na , me naiipon ka pa na Guaranteed Cash Values sa traditional life insurance at

FUND VALUE naman sa VUL.

Suggest ko naman na MUTUAL FUND ang kunin mo, kung meron ka ng life insurance, whether

traditional life o VUL.

Mas maganda pa rin yung safe ka, meaning protected ka ng insurance, di ba? So mas maganda talaga

na first, me insurance ka then maganda din na me mutual fund ka. If you refer to the situation na

binanggit ko sa taas, kung pure mutual fund lang ang kinuha ng breadwinner tapos nadisabled sya at

nag-stop ang income nya,ibig sabihin nde na sya makakapag-top up sa mutual fund nya,paano na ang future ng kids nya? and much more kung, nag-permanent leave sya sa EARTH. It's better

to be safe than sorry, right? Mas maganda na ang segurista kesa magsisi sa huli.

MUTUAL FUND is mainly for investment while VUL is primarily for PROTECTION and secondary

as investment.

Sa mutual fund, basta me pera ka, pwede ka.

Sa VUL, it is your good health that allows you to get one, your money just pays for it. So habang

malakas ka pa at wala ka pang kahit anong record ng pagkakahospital o sakit or whatsoever, better getone. Mas mura pa ang premium pag bata ka kaya advantage din.

Jane DiwaSUNLIFE CAREER AGENT

0917-3910234/ 0918-2027483

DongViktor said:

Aug 8, 2008 05:58 PM

very well said..

Kolmogorov said:Aug 9, 2008 09:14 PM

question to SUnlife agents:

I have SUnlife VUL (balanced fund). Kung puro premium lang yung babayaran ko (meaning no top-

ups), can I stop paying after 10 years? Meron na kasi ako UITF kaya for now, wala muna ako plan mag

top up. Thanks!


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janediwa said:

Aug 11, 2008 02:00 PMHi, Kolmogorov!! It's okey if you can't make top up for the moment. If you prefer paying only the

regular premium for now, it's ok. VUL kasi is very flexible in terms of premium payment at lapsation

basta may fund value pang laman ang policy mo at mababayaran nya pa yung charges.

However, kung yung regular premium lang ang babayaran mo for ten years at nde ka magta-top up,

there is the possibility na maubos ang laman ng fund value mo lalo na kung malaki ang regularpremium mo.

Remember that your VUL is up to age 88. So for example, 20 y/o ka pa lang ***** , then you plan topay just the regular premium mo na for example P24k/ year for 10 years at nde ka magta-top up, me

possibility na maubos nga ang fund value mo kasi after 30 y/o mo up to age 88, dun na kukuhanin ng

Sunlife ang premium mo na P24k yearly for your P1M life coverage.

Ang pwede mong gawin pag ganyan na regular premium lang talaga ang balak mong bayaran at wag

mag-top up, pwede mong pahabain ang paying years mo like 15 or 20 yrs.

Or if nde mo naman type na pahabain ang paying years mo, you can do cost averaging like kahit

monthly, magtop up ka ng kahit P1k/ month, ok na rin yun. And kung P1k a month naman, that's P12k

per year na top up mo.

Kolmogorov said:

Aug 12, 2008 09:51 AM^thanks Jane! I asked that same question sa agent and sabi nya enough na raw yung 10 years kung puro

premium lang (though of course my investment will not grow that much).

kasi di ba if my 10 years of payment is not enough to cover my premium, ibig sabihin 10 years na poor

performing ang VUL.

How come some companies offering plain insurance offer up to 10 years of premium payment only and

you're covered. To think hindi pa VUL yan.

Kolmogorov said:

Aug 12, 2008 10:00 AM

^thanks Jane! I asked that same question sa agent and sabi nya enough na raw yung 10 years kung puropremium lang (though of course my investment will not grow that much).

kasi di ba if my 10 years of payment is not enough to cover my premium, ibig sabihin 10 years na poorperforming ang VUL.

How come some companies offering plain insurance offer up to 10 years of premium payment only andyou're covered. To think hindi pa VUL yan.


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janediwa said:

Aug 12, 2008 11:01 AM

What's your purpose ba in getting a VUL? Is it for protection or for investment? Pag for protection lang

talaga, pwede ngang yung insurance premium for 10 years na lang ang pay mo pero kung forinvestment, don't rely lang lang dun sa natititira sa binabayad mo for the insurance kasi konti lang

talaga yun, you need to top-up for the investment component of VUL.

@ How come some companies offering plain insurance offer up to 10 years of premium payment only

and you're covered. To think hindi pa VUL yan.

I think what you are referring here is a TRADITIONAL LIFE INSURANCE. Mayroon ngang ganitokahit sa SUnlife. Insured ka up to age 100 kaso as compared to VUL, napakamahal nga lang premium

nito. Nasa 60k+/ year for 10 years at nasa P100k+?year for 5 yrs (this is for a 32y/o male non smoker)

mamee said:

Jan 19, 2012 03:38 PM

Originally Posted by janediwa

Ang pwede mong gawin pag ganyan na regular premium lang talaga ang balak mong bayaran at wag

mag-top up, pwede mong pahabain ang paying years mo like 15 or 20 yrs.

Or if nde mo naman type na pahabain ang paying years mo, you can do cost averaging like kahit

monthly, magtop up ka ng kahit P1k/ month, ok na rin yun. And kung P1k a month naman, that's P12k

per year na top up mo.Kapag pinahaba ng 15yrs ok na yun kahit walang top up?

KITHE ORTIZ said:

Jan 19, 2012 09:52 PM

Pwede, as long as you pay your premium on your due dates regularly.

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