Many people asked me why I got Sun Life VUL, so I decided to write it up here instead because I want to share the five reasons I got Sun Life VUL insurance even though I have Sun Life Mutual Funds and other stocks investments.
I did not think of getting insurance like Sun Life MaxiLink Prime before starting with my mutual fund investments and stocks investments because I thought VUL would just take much of the money for my annual premiums.
Besides, I’m still a single lady with no children yet, so I don’t have many beneficiaries. Likewise, I received so many messages about how they regretted getting VUL insurance and how much they were earning money from it.
But things changed when I traveled to Japan and Singapore. Surprisingly, many people there have four or more insurances.
Then I was baffled; why would they need a lot of insurance? Would I be over-insured if I get that much?
I hesitated to get a VUL until I finally bought my first SUV, and the insurance was 28,500 per year.
OMG, I told myself it was close to buying the latest laptop or phone every year.
And I’m not one who always keeps on buying the newest phone or those latest gadgets out there.
I mean, I respect those people who do, and that’s what they want. I just prefer moments and memories to material things.
Just like other car owners, I am required to have Auto Insurance.
If I would be paying that much for my car, why couldn’t I pay more for myself? I am more important than my car, so I should be securing more of ME than anything else in the world.
5 Reasons Why I Got Sun Life VUL Insurance:
1. Insurance is Cheaper While You’re Young
The number one reason why I got Sun Life insurance is that premiums are cheaper when you’re younger. The earlier you get life insurance, the more money you will save and grow.
Why do I say this? Because annual insurance premiums for people in their 20s are much cheaper than people’s insurance in their 30s or 40s and so on.
You will make more money if you start getting a Variable Life Insurance earlier because TIME is money when investing in well-established companies.
The blue-chip companies allocated to your fund could compound more money when you place your funds earlier. Your investment in your 20s could be worth millions in your 40s.
2. Helpful Insurance coverage
As I said, if my car has insurance coverage, I should have one for myself too. In case of an emergency, money comes in handy.
The insurance coverage I got from Sun Life MaxiLink Prime offers life insurance coverage (death benefit) double the face amount with supplementary benefits such as total disability, accidental death, and critical illness.
3. Diversified Portfolio
VUL has an investment portfolio linked to the insurance. It comprises life insurance coverage plus some investments – to equities in the Philippine Stock Exchange Index, some excellent blue-chip companies, and balanced funds.
With Sun Life, my fund is allocated this way: 30% invested in Stock Index Funds, 30% invested in Captain Funds (designed mainly to generate long term capital appreciation through investment in equity and equity-linked securities diversified across sectors), and 40% Balanced Fund (mix government, domestic corporate debt securities and locally-listed equities).
4. 10 Year Manageable Premium Placement
Sun Life MaxiLink Prime allows me to pay for only ten years. Then I could use the fund and its earnings in case I don’t want to pay the annual premiums anymore.
After ten years, premiums would not cost as much as required in the first ten years.
5. Win Over Estate Taxes
When a person leaves this lifetime, the law will freeze all their assets until their estate has been settled. That includes debts and estate taxes. Your insurance and investment will definitely help you and your beneficiaries if you have a Variable Life Insurance policy.
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