A lot of people asked me why I got Sun Life VUL so I decided to write it up here instead to share with everyone the 5 reasons why I got Sun Life VUL insurance even though I have Sun Life Mutual Funds and other stocks investments.
I did not think of getting an insurance like Sun Life MaxiLink Prime before I started with my mutual fund investments and stocks investments because I thought VUL would just take much of money for my annual premiums.
I’m also still a single lady, no children yet so I don’t have many beneficiaries. Likewise, I had been receiving so much messages 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, people there have 4 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 was so hesitant to get a VUL until I finally bought my very first SUV and the insurance was 28,500 per year. OMG, it was close to buying the latest laptop or phone every year, I told myself. And I’m not one of those people who always keep on buying the latest iphone 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 than material things.
Just like other car owners, I am required to have an 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:
- Insurance is Cheaper While You’re Young
- Helpful Insurance Coverage
- Diversified Portfolio
- 10 Year Manageable Premium Placement
- Winning Over Estate Taxes
1. Insurance is Cheaper While You’re Young
Number 1 reason why I got Sun Life insurance is that premiums are cheaper when you’re younger. The earlier you got life insurance, the more money you will save and you will make.
Why do I say this? Because annual premiums for people in their 20s are much cheaper than in their 30s or 40s and so on. The more money you will make as well if you started getting a VUL earlier because TIME is money when it comes to investment. Your investment in your 20s could be worth millions in your 40s.
2. Helpful Insurance coverage
Like I said, if my car has insurance coverage, I should have one for myself too. In case of emergency, money comes in handy. The insurance coverage I got from Sun Life MaxiLink Prime offers a life insurance coverage (death benefit) that is double the face amount with supplementary benefits such as total disability benefit, accidental death benefit and critical illness benefit.
3. Diversified Portfolio
VUL has investment portfolio linked to the insurance. It is composed of 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 to Stock Index Funds, 30% invested to 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 10 years then I could use the fund and its earnings in case I don’t want to pay the annual premiums anymore. After 10 years, premiums would not be as much as what was required on the 10 years.
5. Winning Over Estate Taxes
When a person left this lifetime, all his/her assets will be frozen until his/her estate has been settled. That includes debts and estate taxes. If you have a VUL, your insurance and investment will definitely help you big time for this.