Insurance question ulit specifically yung x yrs to pay and redeeming current fund value

[monk58]

Ok, so dahil sa tulong niyo recently, I also reviewed my insurance policy. Going 5 years na siya. May endowment.

Questions

1. Once natapos ang x year commitment, tuloy-tuloy parin ba ang insurance tapos it pays for itself via the endowment (assuming okay ang market at di lugi)? Now ang question ko is ganun parin ba ang insurance charge? E.g. 10 years to pay at 10k per year. Once natapos yun, 10k parin ba ang insurance na babayaran continue?
2. Gusto ko ipull out na ito and convert to term. Gayahin ko narin options ng kamaganak ko na term. Now if i want to pull out my funds sa sun, pwedeng direchong office at di nadumaan sa ahente? Kasi feeling ko pahihirapan at patatagalin lang ako. E due date nanaman sa june. Ano usually ang process?

Salamat.

 

[simsodep8388]

@monk58 If endowment plan na traditional or ordinary life fixed ang payment period. Nagvavary ang paying period kapag VUL ang product lalo na kung di na enough ang fund value to cover charges. Sa description mo mukhang VUL. Sa endowment plan kasi magbabayad ka for a specific period- kunwari 10 years to pay, on the 6th year may matatanggap ka nang payouts amounting to a certain portion of your policy (kunwari 1M coverage mo- on 6th year and every 2 years thereafter mag matatanggap kang 100K. Lifetime ang payouts nito.)

If gusto mo na magterm insurance, you may directly refer to their customer service or branch if ayaw mo na padaanin sa agent.

 

[monk58]

@simsodep8388 Ah, hindi ganito akin. Tsk... Walang ginamit na vul term dati nung inexplain pa sa akin. Mukhang namislead ako. Basta yung pag 65 ka na, ito na fund mo, pwede mo na gamitin etc etc.

Ang gusto ko is kunin yung funds ko dito sa sun tapos ipang invest and gamitin elsewhere. Di ko lang alam if kailangan dumaan sa ahente or pwede na rektang "iwithdraw"

Yung sa term, sabay na siguro kami ng pinsan ko magapply so no probs dun.

 

[simsodep8388]

@monk58 Kung walang guaranteed or scheduled payouts hindi yun endowment.

Yes, there are numerous products you can choose from pero bago ka magcancel ng plan make sure na may kapalit muna. There are risks din kasi like you may not be accepted on standard term especially if for critical illness coverage ang ipapalit mo - so it is always advisable na may kapalit munang plan bago ka magdecide to terminate your existing insurance coverage.

Assess mo din muna goal mo when getting a product. Term insurance is the cheapest form of insurance pero minimal ang coverage at usually until age 65 lang. It is advisable to get these plans for the following: 1. For temporary protection while building your emergency fund and savings or 2. As additional coverage to supplement your existing coverage. If you are in your 20s to 30s you may also look into whole life plans or traditional plans na mainly for protection lang (without VUL or investment component). 10 or 20 years to pay pero covered ka na for life at mas comprehensive compared to term insurance.

 

[monk58]

@simsodep8388 Covered for life pero ibig sabihin ba nito na habang buhay ako magbabayad ng 31k to keep the insurance alive (kung sakaling naubos na yung vul)?

 

[bymay]

@monk58 31k annual premium mo ba ito? To keep the insurance policy in-force / active / alive, you only need to make sure that your insurance charges and admin fees are paid. It’s 31K because a portion of your premiums gets invested in a variable investment fund and being managed by the Insurance co in your behalf.

 

[monk58]

@bymay So 31k parin babayaran maski tapos na ang 10 years to pay?

 

[bymay]

@monk58 Your plan is Sun MaxiLink Prime, correct? Beyond 10yrs, you won’t be billed anymore but the insurance charges, admin fees and fund management fees will continue. You check with your advisor or the Sun Life app for the monthly charges and multiply it by 12. That’s essentially your annual charges, which you can pay out of pocket from 11th year onwards or let your fund value pay for it. Doing the latter will deplete your fund value over time.

 

[monk58]

@bymay If terminate ko before mag 10 yearsh so as long as may iwan ako doon for admin charges, e.g. 500php monthly, masko di ko na bayaran ang 31k, hindi maglalapse ang policy ko?

 

[bymay]

@monk58 Termination is surrendering your policy contract. Ibig sabihin kinacancel mo na ang policy mo. Once done, wala ka na ring insurance.

So, did you mean before mag10th year, iwiwithdraw mo na ang fund value mo and mag iwan ka ng amount that will cover the annual charges? For as long as you get these charges covered, your policy shall remain in-force.

For proper guidance, discuss this with your advisor or call Sun Life Client Care Center (SunLink): (632) 8849-9888.

 

[maverik379]

@monk58 That sounds like a VUL not Endowment/Whole-Life Insurance. What is the name of the product?

 

[monk58]

@maverik379 Maxilink Prime ng Sun. And gusto ko na iterminate

 

[maverik379]

@monk58 Oh. That's really a VUL not Endowment.

1. The increasing cost of insurance charges and admin fees will be deducted to your fund value until depleted to zero (unless your fund's growth can sustain it)
2. It's not convertible to term insurance so you need to cancel and apply for a new one.

 

[pursueya]

@monk58 Tanong what will happen to a VUL if for example the policy owner stop paying for his horizon-10yrs to pay vul. Then maybe in somewhat event the fund value goes zero after like 9 yrs since. Will it be terminated ba? Since 0 na fund value ng policy

Eg. Nasa age 20 noong kumuwa si policy owner at noong 39yrs old na siya nag zero na fund value will he still be insured? Like maybe he died senior years like 60+? Will there be something left sa family niya?

Thank you po.

 

[bymay]

@pursueya Once the VUL reaches zero fund value, the policy will lapse. You may apply for reinstatement by paying the required premium that your insurer will ask you to settle.

 

[pursueya]

@bymay I see is this the reason why much better ang whole life insurance? Am at 7th year and current fund value ay nasa 100k something lang 30k annual binabayaran ko. What should be the best course? Any thoughts.

 

[bymay]

@pursueya The best thing to do is assess your financial needs and understand your policy benefits better. I don’t know your policy details so I can’t advise you properly on what best thing to do next.

How much is your policy’s sum assured or death benefit? Some VUL plans have 200% death benefit. How much insurance coverage do you need? Do you already have sufficient cover if you have young dependents today? How old are you? The type of insurance you should have must be aligned with your needs.

Whole life insurance policies can be more expensive than VUL because of its limited and level paying feature. If the paying period, for example, is 15 years, then you’re done by then and covered till you’re 100. Typically they earn guaranteed cash value, non-guaranteed dividends, some are giving guaranteed endowment payouts (pension-type) which make them more expensive.

There are whole life insurance policies that are regular paying, too. You pay your premium until maturity year which is 100yo. Premium is cheaper for a sizeable face amount (coverage) but it’s fixed throughout your lifetime.

If you want to save money on insurance and your coverage need is just temporary, buy term insurance. There are term insurance producfs that are convertible to whole life insurance in case your need for coverage changes later on. At least with permanent insurance, your premium will be fixed unlike term insurance that increases over time.