VUL Insurance vs Mutual Fund vs UITF Investment

Time to learn about VUL Insurance vs Mutual Fund vs UITF Investment. Many readers were asking about VUL so I’ve made this page to share about the main concepts of these investments. Which is better among the three? What is the best investment? Which will give you more money?

I have talked about mutual fund vs UITF before and that page contains the complete differences of the two including their advantages and disadvantages. To compliment that page, I have summed up the pros and cons, advantages and disadvantages of VUL, MF and UITF as well so you can decide better which investment you would choose or prioritize if you want them all.

Similarities of VUL Insurance, UITF and Mutual Fund

In a nutshell, all of them are investment wheels and they are pooled funds meaning you can earn or lose money depending on the performance of the fund and the market.

Knowing VUL insurance vs mutual fund vs UITF will help you learn more about managing your money and earning some profit from it. In my experience, I got UITF first then I opened a mutual fund. Eventually, I got VUL from Sun Life. You can check out the reasons in this post: 5 Reasons Why I Got Sun Life VUL Insurance

Differences between VUL Insurance, Mutual Fund, and UITF

As to what they are:

UITF – a.k.a. Unit Investment Trust Fund. The investor participates in a Trust Fund and he or she can earn or lose money according to the fund’s performance.

Mutual Fund – the investor becomes a shareholder of the mutual fund company thus he or she could also have a voting power in the corporation. The investor can earn or lose money according to the fund’s performance.

VUL – stands for Variable Universal Life insurance. VUL is both an investment and an insurance. The investor is insured therefore his beneficiaries will get money when he died.

As to Regulating Authority:

UITF – regulated by the BSP (Bangko Sentral ng Pilipinas)

Mutual Fund – regulated by SEC (Securities and Exchange Commission)

VUL – regulated by the Insurance Commission

Where to open an account?

UITF – you can open an account to majority of leading banks like BDO, Metrobank, BPI, PNB, Landbank, UnionBank, and the like.

Mutual Fund – they are offered by MF companies like Sun Life Financial, Philam Asset Management, Inc. and also banks like BPI. Some stock brokers also offer mutual fund products like that of COL Financial and First Metro Sec.

VUL – some companies like Pru Life UK, Sunlife Financial and AXA. VUL products are also offered in some banks. I saw Pru Life UK agents in BDO recently and AXA agents in Metrobank.

Who should you talk to when you open an account?

UITF – talk to a trust representative or simply ask the bank manager.

Mutual Fund – talk to a licensed mutual fund advisor or fund manager.

VUL – talk to an insurance agent

How much money do you need to open an investment?

UITF – it depends upon the type of fund. There is minimum amount required to Money Market, Bond Funds, Equity Fund, Balanced Fund etc. Minimum is usually P10,000, others are P50,000 and P100,000.

Mutual Fund – like UITF, there is a minimum investment to start a fund depending on the investment product like UITF. You can start if you have P10,000 too.

VUL – because it is also an insurance, you need to pay premiums and this type of investment is usually expensive but worth it.

As to mode of funding:

All these investments offer single-pay and regular-pay investments. I recommend you study and contemplate about your investment goal, status, needs, and capacity to invest.

As to taxes:

UITF – earnings are already Net Asset Value per Unit (NAVPU)

Mutual Fund – your earnings are already net of tax too (NAVPS)

VUL – you may not need to pay taxes because the insurance company is doing this part

As to fees:

UITF – no entry fees or upfront fees but there are management fees and redemption fees

Mutual Fund – there can be upfront fees, management fees and redemption fees depending on the type of MF

VUL – there can be upfront fees, management fees and insurance fees depending on the VUL product

Tips in Investing VUL Insurance, Mutual Fund and UITF

Deciding which investment to choose still lies on the investor’s financial status, investment goal and objectives. It is also important that the investor knows about mutual funds, stocks, UITF and related financial instruments. VUL insurance vs mutual fund vs UITF is not hard to understand.

Don’t be hypnotized by insurance agents and tempting investment offers of some companies especially the ones you never heard before. Study and learn first about the fund’s performance of any investment fund you are interested with. You can do this by looking at Bloomberg or simply go to the company’s website or see our latest lists:

vul vs mutual fund vs uitf

In my opinion, if you already have SSS or GSIS, you can just add more investments by having either mutual funds or UITF. As an employee or a business entrepreneur in the Philippines, assuming you have Pagibig too, you already have Mutual Fund because it’s HDMF. If you have SSS, you already have insurance. If you are a government employee, you already have GSIS and insurance policies. Therefore, you and your beneficiaries already have protections. VUL’s main purpose is wealth building plus protection (insurance). If you know where you’re standing, then you know how and what to invest. That is just my opinion.

Now that you learned about VUL insurance vs mutual fund vs UITF, you can learn deeper by getting to know about stocks and investing in the stock market

Share your comments and views about investing and wealth building. Because when you share, you’ll get blessed. 🙂

If you loved this VUL insurance vs mutual fund vs UITF article, share or like this 🙂 Much love to you!

About Fehl Dungo

Licensed Career Service Professional, trusted Fund Manager, Founder of Philpad and published author of poetry book at Barnes&Noble.

264 thoughts on “VUL Insurance vs Mutual Fund vs UITF Investment”

  1. Hi, There… while reading this column its drives me to invest more… i have VUL in AXA , & as well in PRU LIKE UK with the same amount monthly payment of AED 10K , the difference is not in AXA my family insured of AED 600K only while in PRU LIKE UK.. my family will get 1.5M in case unforeseen happen.. the growth of my money in AXA is much more higher compare to Pru Life … so its answer my question … I’m also a newbie… but its really understandable that all this are products that need to be benefited both parties… So cheers and enjoy investing long term and lets travel while money is working for us…

    • Hi Jenny, since you have already two (2) VULs, this may be the right time for you to diversify and consider investing whatever surplus income you might still have to pure investment vehicles. But before this, may I ask what are the name of the policies in PruLife and AXA that you currently own?

      Actually, as we go thru different life stage, one or two policies may not be able to cater all our financial priorities and life goals. There is retirement planning, education planning for our children, income protection in case unfortunate event happens and you want your family to still enjoy the lifestyle you initially provided, living with impaired health as this can really take a great toll on your life savings, or large purchases in the future in case you want to travel or do home purchase or capital for business ventures.

      I shared these things because the ideal scenario is put up funds in all these life goals, but for some people this is difficult given the limited resources they have. You must also be aware that there are investment-oriented and protection-oriented policies. For AXA, they have AXA Axelerator and Life Basix, and for PruLife they have Exactprotector and PAA. An investment-oriented product generally will have more living benefits at the expense of lower minimum guaranteed death benefits or the Face Amount. than that of protection-oriented products. However, in the long-term, the Living Benefits of the investment-oriented will overtake the death benefits of the protection-oriented. And you may want to take a look again on the products that you have now.


    • Now in continuation…

      I made a comparison matrix of popular VUL policies in the market (Sunlife, Axa, Manulife, Insular Life, Bpi-Philam/Philam Life, Prulife). But first…..

      Among VUL, mutual funds, UITF, and direct stock trading, only VUL offers simultaneous life protection, growth of money thru investing, and the many supplementary benefits (cash assistance when hospitalized, or upon diagnosis of critical illness, etc.).

      With regards to investment, it would also be prudent for starting investors to enter pooled funds instead of direct stock trading unless he has large capital to invest in blue chip stocks, and has the time and diligence to track market movement from time to time, since one can really maximize earnings by trading.

      With regards fund performance among pooled funds (VUL, mutual funds, and UITF), best fund managers in the country are employed in Life Insurance Companies, which offer VUL products, hence annualized returns are higher in VUL by historical performance. And among several VUL products, there are actually few funds that really stand-out. And these funds are available only in select few Insurance Companies.

      You can check the performance of funds on this website

      It is worth to note that there is a VUL Products that offers temporary cost of insurance and premium charge of only 1-year. And the funds are among what I would say have generated superior performance compared to UITF and mutual funds as reported in the link above.

      If you are interested in availing VUL policy, I suggest you get as many proposals from different Insurance Companies as possible. DO NOT compare the products by the illustrated projected fund values through the years. As stated, these are PROJECTIONS, and all are mandated by Insurance Commission to show projected earning rates at Low (4%), Medium (8%), and High (10%). Different companies also offer different protection coverage periods. Some guarantees up to 99 or 100 years old, some are only up to 80 to 88 years old, so one may be swayed to get a “less expensive” policy, but this is not actually case and when you do the math, he/she is actually paying more for relatively shorter coverage, and this is not only for the life coverage but includes also for supplementary benefits (critical illness, accidental death benefits, etc.)

      Lastly, keep in mind that when Financial Planners present to you a VUL policy which would require limited-term pay (5-yr/7-yr/10-yr), it is NOT guaranteed that you will only pay up to this period. VUL is investment-linked, and all will depend on the actual fund performance. Same goes with regular pay- it is NOT true also that you will pay continuously, so look for a premium holiday feature (with no premium holiday charges).

      If you are interested to learn more, I was able to make a comparison matrix of all VUL products, and these cover 2-groups – Investment-Oriented and Protection-Oriented Products. I had 19 criterias as basis of for my evaluation when choosing which company gives more value to the premium (investment) that I pay, as one will be surprised that some companies charge more than other companies (and this does not include yet the hidden charges- you will only realize that it is hidden when you understand complex terminologies in the VUL policy).

      Example of my criterias are: fund performance (annualized ROI/assets), market capitalization, pricing policy (single or dual), protection coverages, premium and monthly deduction charges, rules on policy lapsation, effect on short-term non-payments, etc… I also made an analysis about the pros and cons of regular pay and limited-term pay. Actually, a lot of Insurance Agents offer limited-term pay since it requires higher minimum, and with higher premium the more commission.

      If you have any questions, you may email me or you may text/call me at: 0917-5662845. Just to share a little background of myself, I currently have one (1) Investment-Oriented VUL Product, one (1) Protection-Oriented VUL Product, and two (2) Certificate of Participation for UITF.


      • hi!sun life advisor here..if its not too much to ask, may I have a copy of that matrix?
        just want to check it plans of reposting or anything,just for personal use..

      • Hi Kiel, appreciate your comprehensive explanation of all investment wheels.. can I ask a copy of your matrix for my personal use too and study?

  2. Hi Ms. Fehl,
    What if I didn’t achieved the 5 year maturity of my UITF/MF coz I cannot sustained the monthly dues anymore and I just stop it right away. What will happen to my money or investment after that? Will it grow continuesly until it reached its maturity and sooner I can withdraw money from it? Or can I just withdraw my money and quit?

    • Hi Donnie,

      If I may share my thoughts..

      I am more familiar with UITF because I own certificates of participation. UITF is a closed-ended pool,meaning anytime you want to place investment, it can be done. In the same way, anytime you want to leave the fund or fully withdraw the investment you are also allowed to do so. It would depend on the existing terms if there are withdrawal charges. But so far, I have not heard of any facility offering UITF that has withdrawal charge for withdrawal period beyond 1-anniversary year (from date of enrollment).

      It seems to me that the term “maturity” is likely more applicable to Traditional and Variable Life Policies, because in these products, the Policy Owners MAY need to regularly pay their premiums up to maturity date. The dynamics is different between Traditional and Variable Life Products, so I will concentrate more on the Variable Life Products.

      For Variable Life Products, maturity period or the premium payment period may be shorter than the insurance coverage period. Example, there are policies that require limited-term pay (5 years/10 years/15 years) for the premium but the insurance coverage is up to age 99 of the insured person. Any extension of payment beyond the term period will be considered as Top-Up already (and top-ups have premium charges and may increase death benefits, which in turn may increase the Cost of Insurance). There are also policies that are regular-pay- which means that in order to realize the projected earnings in the sales illustration you have to make continuous payments (assuming projected earning is same with ACTUAL ANNUALIZED ROI).

      But one has to remember that For Variable Life Policies are investment-linked. Hence, if there is a premium holiday feature in the policy (without premium deferment charge), even when you cannot pay the premium, your policy will not lapse and you can remain in the funds with your initial investment earning returns (or loss depending on market movements). Thus, a continuous pay does not necessarily mean you have to pay until the coverage period. And in the same way, a limited-term pay does not guarantee that premium paying period is only until the initial paying period- the Account Value may not be sufficient to cover policy charges or there may be contract debt that needed to be settled, so you will be required to make top-up or extend your premium payment. That’s why for a VUL, it is recommended to stay in the funds for at least 3-5 years especially if payment period of premium charges is long.

      If you want to learn more about the pros and cons of regular-pay and limiterd-term pay, or you may have other questions on VUL, you can reach me thru this email

  3. Any idea how much (as in percentage) insurance agents get when people sign up for a VUL?

    This was several years ago, but I’m somehow realizing just now na (sort of) “naisahan” ako by that assistant bank manager. Well not necessarily illegal, but medyo ‘underhanded’. I went to the bank asking to open a UITF account. I wanted to place in it a big sum of money (which I had no immediate use as of that time). He sales-talked about a better “product”, an up-front payment type of insurance pala (Insular Life). I suppose it was a VUL/VRA. I’m just realizing now na if I had opted for the UITF, he would not have gained anything, but when I chose to open the VUL/VRA, he must have gotten a pretty big “porsyento”, considering that it was an on-the-spot huge amount and not on installment. (It was a 7-figure sum.) But this was several years ago and that money is all gone now on family hospital/health bills, etc. Just curious.. thinking about it now.

  4. Ms Fehl,
    Gusto ko po mag invest kso Hindi ko po alam Kung alin ang maganda. Mutual fund or EIP. Limited lng po ang pera ko Sa 10k. Hindi po b Mwawala ung pera at the end? Ano po ang best para mga limited lng ang pera?

    • Hi Ma’am.

      Based po sa mga nabasa ko mas maganda pa din po maam ang VUL kng mas mapapakilala sa inyo.
      Kasi po ang advantage niya is tax free na siya plus you also have investment.
      Especially sa takbo ng market ngayon, napka ganda po ng takbo ng equity.
      Lalo na po when it comes to securing future!
      Just saying po ah based din po sa mga napanuod at nabasa ko.

  5. Hi, mam fehl.

    Have you tired Money 8 Secure Plus offered by BDO? I plan to invest to this. Any suggestions please? I already have a UITF in BDO.



    • meron ako neto, sa may makakaclaim na ko ng 8k,,, every end of 2 years,,, pag nagmature na, makukuha mo lahat ng binayad mo plus yung acquired dividends

      • Hi,

        I have money8 as welll, nareceive mo na ba yun cash benefit mo?
        How long does it take for BDO to pay out after youve settled the premium?


  6. Marie says:
    November 28, 2016 at 10:32 am
    Hi Sir Fitz! Thank you for your financial advice. Great help for us ?

    Hi Mam! May I ask your opinion about BPI-Philam, recently I have signed to Invest Peso Max tied to Equity Funds with annual payments of P60,000. They are also offering another option which is one time payment of 125000. I am having second thoughts if I would cancel the investment since it is still within the 15-day cooling period. Is this a good investment or will it be better if I would instead use this for investing into mutual funds, UITF and stocks? Please advise.

    Thank you so much and more power!

  7. very interesting topic, as I have been offered also from an agent from axa regarding the chinese tycoon fund, so I thought this is just like a typical mutual fund or UITF, but only to found out its VUL pala, the agent just told me I will be paying 5k a month or 60k in a year or semi annual at 30k good for 5 years and my money will grow at nakainsured padaw ako, I asked if there’s an option of just a one time payment, and the agent told me that there is but would require 500k. so he made me believe that for me to avail the chinese tycoon fund is at least to invest 300k for 5 years, after receiving my statement after a year so that’s already 60k, my current value is only 37k+, talagang napa holy **** ako, na kala ko nagkulang bako ng hulog e nagbayad nako ng 60k after a year, un pala may 35% premium charges na di man lang binangit at ung monthly charges na kinakaltas dun sa shares ko sa chinese tycoon funds, kaya after reading some comment also here na may nag invest din sa axa of 150k now turns to 104k nalang dahil sa charges. so after learning na dika pwede magwithdraw after 2 years dahil magiging “thankyou” at 100% ung surrender charge, what will happen pag natapos ku man hulugan ung 60k yearly for 5 years kahit ung first 3 years ang may premium charges, at sinasabi ng iba na 5 to 10 e kulang pa para maka earn which will be based from the current bid price from your accumulated units, will I withdraw whatever my money accumulated base from the bid price after 5 years or shall I simply pull it out after 3 years at 25% ung surrender charge?

    • Hi Noypi,

      I am from Prulife UK and we have the same program which is payable for 5 years. I understand how you feel and I feel sorry since the agent didn’t discussed thoroughly the benefits and charges of the product.

      But I suggest that you continue your 5 year policy and wait for your funds to breakeven with the amount you invested. Also, since it comes with an insurance protection it will be for your best interest.

      Charges are applied to these kind of investment (5 Years) because the company discourage you to withdraw your fund earlier than 5 years. Ideally, 5 to 10 years so that you can maximize the growth of your investment.

      Hope this helps 😉

    • I guess di masyado nadiscuss ng agent mo about sa premiums na ikakaltas sa funds mo, siguro nagfocus sya sa pagdiscuss ng investment mo and the possible earnings kaya na grab talaga ang interest mo. Although wala naman problem if kunin mo ang VUL na yon as long as you are comfy with the payments and the risks. If wala ka pa insurance and may family ka na, I think tuloy mo nalang til 5 years. Ang problem lang ay nasabay na down ang market in the past few years kaya mababa din ang returns sa mga investments

    • thank you for the inputs ma’am angel and ma’am fehl,

      yes, i will try to weigh in which is better, I don’t have regrets about the insurance anyway since I am also contemplating for the 5 years period that I am insured which if my calculations are right would just be 2k a month in 5 years if the market shows some growth after the next 4 years, and will just take advantage while the market is down so I can accumulate more shares before I make my decision on the 3rd year if I will pull out and invest it somewhere else.

      hope other readers will not be hasty to sign up any offers without knowing what they are going into just like what I did since I got used more on mutual funds and uitfs that I did not bother much researching on VUl since as I have said I thought my agent offered me was just an ordinary mutual fund

      my misatke was, my agent was the one who filled up the forms and just let me signed at the last page which maybe I was ovherwelmed with the percentage of returns of this chinese tycoon funds that when I reviewed the yearly statement received it was not that much with the bid price is too low as of the moment.

      anyway great post ma’am fehl, now I know how VUL works compared to other investment vehicles.

      oh boy how I wish I could give my agent a 1-2-3 punch if I see him around in Metrobank.

      and in case an agent will make an offer next time, I’ll simply say: ” talk to my hands…”

      just kiddin 🙂

      • Sir, the face amount (sum assured) is your virtual fund which is guaranteed and to be withdrawn by your beneficiaries if something happened to you.

        If you have huge wealth, this is nothing. But if you have not started yet building your wealth, getting an insurance is a good way to start.

        In time, magpapasalamat ka pa din sa insurance agent mo, promise! 🙂 peace 🙂

  8. hi Ms. Fehl,

    I’m mark currently working here in Dubai. I find it ur blog was really helpful as i am about to start my investment and i am now in the middle of choosing between UITF/Mutual Fund or Truly Rich Club (SAM) by Bro. Bo Sanchez. I have this objective of having a 2Million pesos in 5 years. I can invest 20k monthly regularly.

    Hoping for your kindly response.
    Thank you,

    • UITF in Equity or Mutual Fund in Equity could also give you high returns just like stocks. UITF and MF are safer for beginners since those funds are managed by finance experts. If you are experienced with stocks investments, you can go for stocks (SAM). I used to follow SAM but now into following

  9. I just unsubscribed from BDO EIP. Mine was 5K/month on Equity. I started in 2014 and I realized that gain isn’t much. My loading buisness was even more fruitful. Please have a review of the BDO saveflex secure VUL. I would like to compare with the sunlife VUL of my sons. Saveflex is a new product of BDO which I am interested in because premium payment is only for 5 years. Thank you.

  10. Your website is very informative and helpful. Thank you. May i ask, i received 1.5 million pesos recently from inheritance, i now live alone and still in college. May i ask for advice what to do with the money so that it will earn and i am assured to receive returns for the next 15-20 years. I spend around 12,000 per month for tuition fees, cost of living, boarding house rent. I have little knowledge and interest about doing business and i dont expect to get a high paying job when i graduate. im hoping that my money now if placed properly could sustain my cost of living in the future. i have been reading about stocks, uitf, mutual funds but i am so confused and scared. a relative advised me to go into lending instead. Thank you

    • Hi Demi,

      I am Kariscia Darina, a licensed MANULIFE financial adviser. MANULIFE is the largest insurance company in the Philippines.

      It’s great to know that you’re thinking carefully on what to do with your inheritance and looking for ways to secure your future. As a financial adviser, I would suggest that you can opt to avail insurance product that can help your inheritance grow or accumulate funds thru its investment feature while you stay protected because it has guaranteed insurance coverage. I suppose that you don’t have much knowledge on what I am talking about. Anyway, I don’t want to add confusion to you and that’s why; I would like to explain it further to you and help you choose the right option on how to secure your inheritance and your future as well. I am willing to help you because as a financial adviser, my advocacy is to help people like you secure their future. You may #StartYourStory with us, MANULIFE,

      I am very much willing to educate you more about financial wellness if you would just allow me to talk to you personally. Let me know if you’re interested. Thank you very much in advance.

      All the best,
      Kariscia Darina

    • Hi. Since you will be needing that 1.5 million without too much risk, I suggest you put it on a Fixed income Fund or Money Market from any UITf or Money Market Fund from any mutual fund. Also, you must dream big and aim for high paying job after college unless you don’t want that life. God bless 🙂

  11. Hi Ms Fehl

    I would like to ask what is the best combination of fund type for VUL . Are balanced fund and equity fund a good combination? How about Bond fund and Index fund? What should be the correct allocation of these funds? is it 40% : 60% or 20% : 80%? Please enlighten me on what fund type to choose. Thank you

  12. Hi!

    I just started doing Stock trading start of 2016, I’ve read about diversification. So from Stock Trading (thru BPI Trade) I just got the Invest Peso Max from BPI (Single Pay VUL) to be honest the agent did not inform me of all that was included in the policy so I am not 100% sure if I made the right move. I just received the policy so I am kinda reviewing it. I don’t even know when the policy will mature I only see the termination date. Still reviewing the policy

    Please enlighten me if I made the right choice as I am still within the 15days cooling period

    Currently my investments are:
    ALFM Peso Bond Fund
    BPI Short Term
    Invest Peso Max – VUL
    BPI Maxi Saver
    BPI Trade
    BPI Save UP
    BPI Savings

    Still thinking of getting BDO or Metrobank UITF 🙂

    The agents who sold me the policy was very inept. I asked him if what he was offering was VUL he said no. Then he was trying to push me to get the one with the monthly premiums which I declined since I was okey with the single pay. Although he did not infomr me of the charges for top ups & such which I only read thru the policy.

    • If you don’t have any life insurance yet, BPI Peso Max is a good one. It seems that you have chosen Peso Bond Fund with it, it’s good too if you are a semi aggressive type of investor. I recommend getting a comprehensive coverage if you can afford the premiums. Cheers! 🙂

      • Hi!

        Thanks! I already have insurance coverage from work as well as from the BPI Save Up.

        My BPI Peso Max was placed 100% on the Index Fund & the BPI Beso Bond Fund is another fund altogether.

        Will the monthly returns (if any) outweigh the charges monthly (i think this is the management fund) in the long run? Is it ideal to hold on to this atleast for 5 yrs to be able to max the potential?

        Thanks again for the reply

        • Yes, Index Funds are really suitable for 5 years or more. Your fund will grow generously by that time. Management fee is always counted already with the NAVPS.

  13. Hi Ms. Fehl,

    Thanks for this post, it blurred out the lines between those 3 investment vehicles.

    I am 25 y/o I and my wife have our own VUL’s (1.8years) and Health insurance(5 months), and only I have another pure life insurance. I am thinking to get another VUL which the company offers to people with high risk appetite, maturity is 3 years only compared to my existing VUL which is 5 years, and the percentage that goes to the investments is much higher than the one that goes to the insurance. Another plan is to simultaneously invest in UITF and I am looking at BPI’s. I would like to ask for your opinion on will it be redundant already if i get this aggressive-VUL on top of my existing VUL? Or would you rather recommend to just cancel another VUL and just pour more into UITF instead?

    • They wont be redundant since they have different allocation and maturity. I’d say, only they will become redundant if you take them as redundant 🙂 If I were you though, I’d just go for UITF or MF instead of a new 3 yr VUL, wait for your 5 yr to expire first

  14. Hi All, Is there anyone here who is currently invested in Saveflex Secure of BDO? Just want to know if this is good or not, its a VUL type of investments. anyone knows this? please let me know your thoughts about it.

      • hi po ms. fehl. my policy for saveflex secure was approved last week and i am currently under the 15day cooling period. maganda po ang review nya as explain of the financial advisor. it is 50k per year for 5 years. please advise po sana para maliwanagan po ko lalo. salamat po.

    • Hi! You have to go to a BDO branch kasi may forms needed to fill-up and questionnaires. Once you already have an account, that’s the time you can enroll it online and monitor your investment.

  15. Hi Ms. Fhel,
    Thanks for a very informative blog . By the way I am married 30yo and have one daughter .im planning to get a vul . Is it advisable that both of us me and my husband will have it or either one of us only. Thanks much. Godbless.

    • Hi Jo,

      I am Joshua from Prulife UK. It is advisable for both you and your husband to have separate policies as it only covers one person. In that case, whatever happens, the spouse and child will be benefiting from the insurance and savings. If you want to know more, just drop me a message in FB. Let me help you.

  16. I have a VUL insurance which i opened last year. Unfortunately, a big problem came this 2015-2016 in Saudi Arabia being hit by financial unstable due to oil prices of barrel are low which their economic income mainly came from oil. I am one of them being hit and lose my Job in the company i working for.
    I am planning to withdraw my VUL insurance. Is there any one here experience of withdrawal in VUL insurance?

    • Dear Alvin,

      My name is Marissa Nicanor and I am a financial adviser of Manulife Phils. With regards to your inquiry, unfortunately, most VUL plans have very high withdrawal charges from 90%-100% in the first year. Please check your contract as it is written there. I know that you may feel like you’ve lost, however, life really throws us curve balls every now and, through no fault of ours, we have to take the hit. Your primary concern now is to look for another job and establish financial stability. When that happens, you can always pick it up again. Let me assure you that these things always pass. Please contact your agent and discuss your concern.

  17. hi po, anung type of investment po ang Citiseconline? nabasa ko po kasi sa book ni Mr. Bo Sanchez. may insurance na po kami mag asawa pero humahanap po ako kung san maganda maginvest.. hindi ko pa po masyado ,aintindihan uitf at mf

    thanks po

    • Hi Che,

      Citiseconline (COL Financial) is a stockbroker here in Ph. They are the portal of the investors to stock market (Equity). They offer 2 kinds of service, The fisrt service they offer I call them hands-on investing and second is Mutual Fund. In hands-on investing, this type of investment you will be the one who will manage your investment in Philippines Stock Exchange (hands-on online shopping of stocks) through Citeseconline. Unlike in UITF, Mutual Funs and VUL, they have professional fund managers who will manage your funds savings. Usually in hands-on investing in stock market you’ll be requiring some of your time in able to carefully analyze and assess if the stock you will buy right now is good or not unlike UITF, Mutual Funds and VUL’s, these are for busy persons who don’t have time to manage his/her savings.

      If your type of insurance is VUL, you have a choice to put your funds (savings part) on stock market (Equity). But better to consult it first to your agent.

  18. hi Ms. Fehl,

    Nagemail ako sa sunlife para magkaroon ako ng knowledge about mutual funds and nagrefer po sila ng advisor.. may nakausap na ako na financial advisor pero ang inoffer niya po sakin ung VUL, Ang goal ko po as of now is makapagpatayo ng sariling bahay maybe 5-10 years from now. I am 22 years old palang po,I want to invest in MF, kaso I want to learned more about it and di ko din po alam san ba ung best na pwede mag invest..Thank You po

    • hi breanna,

      you can start checking the net to boost your financial literacy. Take the advantage lang ng internet para kahit basic sa mga financial tools na ito matutunan mo. Better mag hanap ka ng friend mo na pedeng mag refer sayo ng maayos na agent. “note lang na karamihan ng mga financial advisor now a days habol lang talaga is commission”. kaya malamang sa malamang bibigyan ka ng product nila kung saan mas malaki yung makukuha nilang commission. BTW as per my under standing VUL is not meant for 5-1o yrs time horizon. meron akong policy sa isang insurance company and its not really advisable to put your money in VUL if 5-10 yrs lang, consider mo rin yung 1st -3 yrs (mostly ganito yung design ng product nila) sa unang 3yrs hindi 100% yung napupunta sa investment component.

      • Hi Sir Ruben!

        Thank You po for your advice,:D Halos everyday na din po ako ng babasa ng mga blogs about Investment especially Mutual funds para po kahit papano eh may idea ako. Unfortunately, wala po akong friend na may kilalang maayos na agent kasi naghahanap din po kami pare pareho. Pinag iisipan ko po if bond fund or balanced fund ba kukunin ko eh.. Gusto ko sana makapag invest as soon as possible hanggat maaga pa.

        • Hi Breanna,

          I’m really happy for you knowing that your only 22 yrs old, but your already interested on this matter. Tama ka dapat talaga hangat maaga nag iipon na tayo. You may visit BDO, BPI, METRO BANK and other banks, inquire kalang regarding UITF nila (wala nman masyadong pinagkaiba ang UITF and MF). A piece of advise lang ensure mo rin ung protection mo. In my opinion dapat 1st muna yung protection mo before ka mag invest. you may used BTID strategy (cheaper way of getting insured and investing) or VUL if you can afford naman the monthly premium.

          If you want i can refer to you my agent at baka makatulong siya sayo.. nasa isang insurance company sya, although bago palang sya but what i like about him is that hindi sya biased he is actually the one introduces me on BTID (kahit VUL ung primary product nila medyo mahal kasi starting ng investment nila). Although i’ve also acquired VUL nila for diversification purposes and sa tingin ko mayron ding feature si VUL na wala sa BTID.

  19. Hi I;m 19 yrs old and I decided to get a VUL at Sun Life, my concern is that I got my premiums too high and i doubt i can pay it given that I’m only starting on my career, can I still change my premiums? hehe I really got too aggressive with it.. Thank you! 🙂

    • sana naman pinaintindi sayo ng agent mo yung papasokin mo.
      again investment is a commitment. dami na talaga agent nagyon na habol lang commission di sila nakakatulong mas lalo nilang pinahihirapan yung client nila

      • i agree with this. kaya nga financial consultant ang tawag samin. we are to help people meet their financial goals. insurance companies offer low premium policies for those na hindi makaafford ng regular policies. most likely e commission nga ang habol ng agent.your premiums can go up, but not down

  20. Hello, medyo off-topic na tong tanong pero sana masagot nyo po. pwede ba mag invest sa balance fund kasi OFW? salamat. balak ko po kasi mag invest sa sunlife.

  21. Mam thank you so much for this useful and informative blogs, comments and advises.
    Can you help me and give some insights please. My BPI-Philam single premium variable life insurance matured last month. I want to invest it again coz this money are allotted to my kid’s future since they are only 2.5 years old & the other one is only 4 months. Right now I have an some active investments at sunlife (Sunflexilink payable in 10 yrs), BPI-Philam Invest Plus Peso, BPI Build Plus Peso, Prulink Assurance Account Plus and Prulink Exact Protector 10 & active member of Modified HDMF 2. Is it advisable to have another investment say Metro Equity Fund or Metro Wealth Builder Fund @ Metrobank? Or this matured money should top-up to the active investments? Which one is advisable.
    Thank you so much in advance. Your advise is highly appreciated. God bless and more power…

    • Hi Ms Fehl! After two days reading your blogs, articles & advises helps and enlightens me so much. Thank you very much for sharing our thoughts, knowledge & guidance. I felt like attended training for a month. All my worries was erased & almost all of my questions about financial was answered by your blogs. Now im so inspired to invest & learn more about stocks.

      As a matter of fact, this morning I wet to my bank to place an investment (UITF) rather than o sleep in one account and wait for nothing. If this blogs seen me before maybe this time, imagine for almost 10 years sobrang baba ng interest sa bangko. Again, thank you so much. More power & sana marami pa akong matutunan sau. Thank you & God bless us more…

    • Hello im jb, a licensed financial advisor..
      yes definitely you should just top up in your current investment rather than getting a new plan and wait again for the long term. OR get a new plan, a single pay plan in which your 100% fund will go directly invested to stocks and enjoy the earnings in just a matter of time, to make you satisfied you should invest that single pay to a company that has a good performance and has a huge market capitalization.
      You can contact me through mail so i can guide you along.thanks

    • Hi Ms. Lyn, kumusta po ang investment ninyo sa BPI -PhilamLife Build Life Plus? Nag avail po kasi ako and I’m not so sure if tama decision ko? 5k/monthly po sya, payable for 10 years..

  22. Hi,

    Just to add lang. First before you invest, you should have at least an Emergency Fund which is 120% of your monthly salary. Second you need protection. VUL is actually for people who don’t have the time to manage and look after the stocks themselves. There are ups and downs naman sa lahat ng investments. You can also say BTID or Buy Term and Invest the Difference. So it is like Term insurance+Mutual fund. The disadvantage of term is it gets more expensive as you get older and wheneevr you renew it, it’s considered a new application again so pag nagkasakit na kayo or anything, kailangan na ng medical etc. For VUL naman, you can pick 5/10/15-year term since first three years lang naman malaki charges. Remaining years is 5-10% or less na lang.


    • Good day!

      In VUL, if the policy owner chose to invest his money in equity funds, does he become a stockholder in the corporation where his money is invested in? If yes, does he enjoy voting rights?

    • Hi, Ms Kristina. Tama ba ang pagkaintindi ko, ang VUL, kahit mahal, for 20 years na di ginalaw magiging investment dahil ang gains based sa NAVPS? Compare sa term insurance, hindi na maibabalik ang pera? Thanks for reply..

  23. hi ms fehl,
    Tanong ko lang kung san mas magandang mag-invest or mas malaki ang ROI, sa UITF, MF or sa PAG-IBIG(HDMF) ? or magtop-up nalang ako sa VUL ko? thanks and God bless

    • Hi. It depends upon the performance of the funds. Usually, Equity Funds from Mutual Funds and UITF give the higher ROI but also give the highest risk

      • Hi fehl,

        Thanks for your very informative site and blog -financial advice.

        My concern: have paid up option for a VUL with guaranteed P1M insurance coverage and 6% endowment every two years (P60k every two years, or P30k a year) and some dividends depending on the market performance.

        I have the option to borrow P500k from my own fund with loan yearly interest rate of 10%.

        I plan to reinvest into other equity fund/TUIF derivatives which will yield better ROI, and at the same time will give me insurance protection, and monthly gain to pay for my loan servicing from my current VUL.

        What do you advise?

        I’m trying to trade also in our PSE …just playing P100k-P150k which is currently giving me +10% to 15% roi, but very risky.

        Thanks and more power!

  24. Hi,
    Kumuha kasi ako ng insurance my question is, ano po ba ang ibig sabihin ng Reduced Paid up Insurance?San ang kelan eto gagamitin and ano at para saan to? salamat po in advance sa mga sasagot.

    • Hello, Ish! My name is Marissa Nicanor and I am a financial advisor of Manulife Philippines with 15 years experience with the company. Re your inquiry about Reduced Paid Up, this means that kung hindi mo matapos yung premium payments mo (for whatever reason), you can still have benefits pero decreased. Ex: kung ang insurance mo 10 years to pay and your face amount is 1M tapos hindi ka na makabayad on the 8th year but you don’t want to lose your benefits, apply for Reduced Paid up and instead of being covered for 1M for life, the insurance company will reduce your coverage. The Reduced Paid Up scale can be found in the first few pages of your contract. Best to consult your agent if you don’t understand the provisions of your contract.

      • Hello Mam Marissa, i just want to ask if you are familiar of the future savings platinum (life insurance) of cocolife. I know you are from Manulife but i just want to ask some good advise. One year ago an agent of cocolife stop me at the mall and discuss about they offer in very short period of time and i dont even understand enough they explanations until they took and swipe my atm card and deducted Php 20K plus for 1 year payment. Now its already 1 year and i started last june 2015 paying the premiums of Php 1,600 auto debit in my bank account. Im planning to cancel and not to pursue anymore however, im here abroad and i can not process personally. Do you think cocolife will allow me to cancel my future savings platinum and refund my money? Or i will just leave it and continue to pay until 10year?

        • Dear Red,I’m familiar with Cocolife but not their product. First of all, do you have a contract? The company is suppose to issue you a contract after your policy has been put into effect. Just so you can read and understand exactly what you’re paying for. Secondly, Cocolife is a good company and I’m sure that the product they gave you is something that will benefit you in the future. Thirdly, P1600/month isn’t such a hardship, is it? If it spells the difference between paying your premiums and putting food on the table, then yes, stop paying. If not, do continue. You can call Cocolife and have your auto-debit stopped. Or, call your bank and have your premiums dis-enrolled.

          When they presented to you in the mall, I’m sure you saw something that appealed to you which is why you gave your card for them to swipe. I recommend that you contact Cocolife via email and ask them to give you a review of your policy.

          I prefer that you don’t throw away your hard-earned money by just lapsing your policy because you don’t understand what you purchased. Cocolife has a website and you can email them. Make your decision after they have informed you of the benefits of the policy you purchased.

          As a financial adviser, I want my clients to appreciate what their money is buying. It is my duty to remind them.

          I hope I was able to answer your concern with satisfaction.

          Thank you.

        • Hi Red. I think i know what you are referring too. Is that an insurance company that ambush you while you are inside the mall? If that is the case i suggest that you call your credit card company to cancel payments, they can cancel the 1,600 pesos still. Also rescind recurring payments already, if you can’t cancel it, then request for your card to be cancelled and ask for a replacement. i doubt that you will recover your money, but it’s better than being charged again and again. your contract should state how much u can get if you cancel but i doubt it will be much. u see that is how insurance company works. that’s why u have to pay consistently for 10 years or for life, depends on your plan. My advice is to cancel bec that insurance company is never heard. pls get only from top insurance company bec even if u get a 10 years vul plan. they can extend it. so u need to study their past records. 10 years doesn’t mean you only have to pay for 10 years, i learned that the hard way. i had an insurance with philam. i had to pay for another 5 years bec they say the money invested didn’t earn much blah blah. not saying all insurance company are like that. i am a licensed financial advisor too, a newbie but my mom likes to invest in insurance companies so it’s based on our experience. hope this helps 🙂

          • I was also ambushed by the agents of cocolife, at that moment, i am looking for an insurance company, i thought they are just sharing “ideas” regarding with their ‘future savings platinum”, I was amazed and the agent almost convinced me to get an account.. after the discussion, they get my cc and accompanied me to the counter, and i was really shock! i sswipe na nila agad ung card ko without asking me formally if mag aavail ako, but then i refused, nag explain na naman sila, and they are forcing me to avail they even offered me the student category which is only Php 2000, instead of the Php 9000. I told the agent na I don’t have any idea na mag aavail na dapat that time bcoz what i know is “ideas” lang daw and that’s what i need, i am really disappointed with the attitude of their supervisor na saying na “kelan pa daw ako magsstart”, “anu daw kinaiba ng bukas sa ngayon”, “may mawawala daw ba if nag swipe ako that day”, dba? very rude. super! kaya ayoko na lang mag avail, i suggest, that supervisor must undergo a Interpersonal skills training. I would never thought na supervisor sya the way she talk and act. I wish them goodluck nalang if ganyan sila. anyways, just sharing my experience with cocolife agents and supervisor.

        • Hi Abby, exactly why i advised Red to cancel her credit card payments. That Cocolife insurance is no good. You are not alone, i have heard horror stories about those ambush insurance companies in malls. First they will be very pushy saying it’s just a few minutes of your time and they just want to explain, they will even offer you free stuff to convince you. once they get you at their office, you are at their mercy. the will ask, cajole, beg and try every tactics to convince you. If the agent can’t, he or she will call for back up. A so called “supervisor.” at first he will try to persuade you then intimidate you then he will act angry when you refuse. tanga or weak person lang ang magpapauto. personally. i don’t care what other people say. it’s my money and if the supervisor says kelan ka pa magtitipid? anong kinaiba ng ngayon o bukas? may mawawala ba pag i swipe? i would say wala kang pakialam sa pera ko. and one more thing may mawawala pag swipe, yung money ko. and it’s mine not yours so if i don’t want to get an insurance, you can’t make me. and if you act like an ass in front of me. then the more i won’t get goodbye! I am a financial consultant too but i never pressure anyone to get an insurance from me. i give them weeks to decide if they aren’t sure yet. i would follow up once or twice very politely but if the client is undecided i would just say please give me a call when u are ready. thank you. some financial advisors kasi don’t think if the client can afford it and doesn’t explain properly, dapat they should show how much the client can refund if the client can’t pay their premiums na. Good for you abby, you were not pressured. A good financial advisor won’t disrespect you in any way bec you refuse to get an insurance from them. dapat ni report mo sa insurance commission para matangalan ng license. how rude!

          • Naranasan ko na din tuh. Share lang daw sila ng ideas tapos wala daw commitment. Pero nung matapos na eh kung anong anong insurance products na inoffer sakin. sabi ko ayoko. tinawag yung supervisor para iconvince ako pero wala epek.Parang nairita pa yung supervisor. ang ending tinawanan ko lang sila habang palabas na ako ng office nila. LOL

  25. “Good Day! Salamat po sa blog na ito dahil nalaman ko ang different types of Investment UITF,MF,VUL. Ako po ay kumuha ng VUL Saveflex sa Generali Pilipinas last year of November., Bali 400,000 ang target investment ko for 10 years, so 40,000 po ang annual ko, tapos ang type of payment ko ay quarterly na 10,000. Kinausap ko po yung Financial Advisor ko kung pwede bang babaan gawing 150000 nalang for 5years dahil medyo nabibigatan po ako sa 10k/ nabigla lang ako sa 400,000 investment..hihi pero sabi po nya hindi na daw po mababago kc sa traditional lang daw yun pwede not in VUL.. I’m 25 y/o na po, may sarling business.Single Tanong ko po
    1. Sa palagay nyo ok po ba yung nakuha kung deal w/ my insurance na ituloy ko pa? sa ngaun po 30k na yung naihulog ko ?
    2.Hindi po ba talaga pwede bagohin oh paliitin yung plan ko pag sa VUL?
    salamat po..,”

    • Hi, it really depends upon your comfort and capacity to sustain the fund. With VUL, it is important you assess yourself and your financial situation (current and future) aside from your goal, before signing up the papers. Medyo mabigat talaga ang premiums kasi great ang coverage ng insurance sa mga VUL products

      With you second question, depende din yan sa flexibility ng contract or policy. Contact your Financial Advisor or better yet contact an officer higher than your financial advisor

    • Hi. I am a Financial Advisor of Generali Philippines. You can still amend or make changes with your premium but this is for approval with the Customer Service Department. Upon changing the premium, if you wish to make it lower, know that the Sum Assured will be affected; it will be lowered for it depends on the annual premiums. I suggest that you contact again your Financial Advisor and insist that these changes are possible but for approval.

      Where did you get this policy? I mean, what BDO Branch?

      • Hi, I hope you can help me since you are from generali Pilipinas. I recently availed of the money 8 secure plus when we were on our holiday in the Philippines. Maybe it was explained well to us by the agent but since we are constraint with time, It is only now that I looked what did I get myself into. Tried searching online but 99% says investing to Generali Pilipinas is not a good idea.Maybe you can explain to me what is my policy about. Your assistance on this matter is highly appreciated. Thanks 🙂

        • Hi Bernadette! I’m a financial advisor of BDOLife (Generali). Let me help you better understand the policy you got from us.

          First of all, Money8 Secure Plus is a participating endowment insurance plan that gives you protection for 20 years while also providing GUARANTEED living benefits.

          Enjoy these benefits:

          GUARANTEED increasing life insurance protection equivalent to 100% of the sum assured on the 1st and 2nd policy year.
          200% of the sum assured at the beginning of the 3rd policy year thru the 20th policy year.

          Pays out a Guaranteed 8% of the sum assured at the end of the 2nd policy year and every two years thereafter until the policy matures at the end of the 20th policy year.

          Pays out a GUARANTEED lump sum amount equivalent to 200% of the sum assured on the maturity date.

          GUARANTEED premium paying period of only 8 years.

          Grants the remaining cash payouts plus the maturity benefit to your beneficiaries as scheduled, in the event of your untimely death before the maturity date.

          Gives you the ability to earn policy dividends which are Not Guaranteed.

          In a nutshell, BDOLife created Money8 Secure Plus to provide you with Guaranteed income over the next 20 years, coupled with lump sum cah payouts upon maturity.
          You are then free to use these funds according to your needs and priorities– to save, invest or spend. They also come with life insurance protection to ensure that your family’s financial future is protected should anything happen to you.

          If you are not much of a risk taker but wants to grow your savings with Guaranteed income, then this policy is right for you.

          • BDO Money 8 secures falls under which type of insurance? Is it qualified as VUL?UiTf?thanks nina

  26. Hi there..
    If I want to know about investing,where to start?I’m in my 30’s now,di pa ako nakakapag-start..Your help will be much appreciated.

    • Hi Cj,

      Is your question for Ms. Fehl? or for just anyone?

      Rule of thumb dictates regarding investing:
      Protect yourself first then protect your money.


    • Hello CJ,

      If you start investing,know your goals first,your risk preference,time horizon and how much money you want to invest. You can invest in stocks,mutual funds or Unit Investment Trust Fund(UITF) if you want pure investment. If you want protection plus investment,go for Variable Universal Life(VUL) which is usually offered by insurance companies like sun life,philam life,manulife and the like 🙂 Hope this helps!

  27. Hi adrian?
    Blank lang yung nakalagay sa premium holiday, sum insured is 500k and 5 yrs contract sya. Pro sabi ng financial advisr ko pgmgdagdag daw ako for top up na daw yun wla daw bawas ng premium yun ang sabi nya. If savings dw tlga like ko at want ko kumita ideally 8k monthly ang ihulog ko pero kung d dw kya kht mgkno nlng dw. Hay ang gulo nmn..

    • Hi Ms. Marie,

      Thanks for the info Ms. Marie.
      Bottom line, everything depends on your decision.
      If you want a hassle free investment plan, then withdraw the available money and pick another VUL.
      If you want to carry on with this stress, and feels that the money invested is more valuable than your stress, then, stay.

      What ever your decision will be, I pray that it would benefit you more. If you are interested with our insurance company (Manulife) then feel free to prompt me anytime. 🙂

      Thanks and God Bless!!

    • Hi Ms. Marie,

      Additional info lang Ms. Marie. You’re financial adviser is really quite concern for your investment. Kasi if ever that you withdraw the money, he’ll be affected as well, his commission and points will be refunded kaya ayaw ka nya mag-withdraw. 🙂
      May claw back !

      Good luck on your decision Ms. Marie!

  28. I would just like to comment on VUL. I think it is one good investment as it give you both Investment and protection. The protection part of this product if you compare to SSS and GSIS is far more better. The investment in VUL also earns as much as 20% if put into an Equity fund. And yes, if we talk about tax, this investment can be tax free because of its insurance nature. I am an advocate of VUL since when I compare its performance with MF’s they are far better as well. Though for diversification, I would also suggest to invest on MFs and UITF. But since UITFs and VULs are regulated (BSP and IC respectively), they are I think far better than MF’s because if say the company where you invested your UITF or VUL got ‘bankcrupt’ , it can be absorbed by other banks or insurance companies. Consequently, they can be served continuously by the ‘absorbing’ bank or insurance company. Unlike with MF companies, since they are only regulated by SEC, just like what happened to pre need plans, if they get bankrupt, there is no one to ‘absorb’ them thus leaving the clients with nothing. Just my two cents on this post.

    • “… if say the company where you invested your UITF or VUL got ‘bankcrupt’ , it can be absorbed by other banks or insurance companies.”

      Where have you gotten that idea of banks and insurance companies going bankrupt, their clients’ interest i.e. collectable money can be absorbed by other banks or insurance companies?

      I seem to read that local insurance companies join with each other even with companies abroad so that they will remain solvent from mutual assistance, just as with the Ondoy flood calamity no insurance company I like to believe failed to indemnify their policy holders: but they all learned the lesson to not anymore sell anti-flood policies in Marikina City.

      With banks, I don’t think they band together so that no bank will be (of the banded together banks) be insolvent to their clients: because fellow banded banks will come to their rescue.

      Anyway, I like to read what are your authoritative sources or documents from government offices in this regard.

      Perhaps you are talking about the PDIC, which is for cash deposit accounts (up to half a million pesos only though), not for investments in funds available also from banks.

      • STATUTORY MERGERS & CONSOLIDATIONS: undefined Although mergers and consolidations are two distinct types of corporate combination (a merger being a union whereby one or more existing corporations are absorbed by another corporation that survives and continues the combined business, while a consolidation is the union of two or more existing corporations to form a new one), the Corporation Code prescribes the same procedure for both. Thus, in either case, the constituent corporations formulate a plan of merger or consolidation, obtain the necessary corporate approvals and any necessary governmental endorsements, execute the articles of merger or consolidation, and then submit them to the Philippine Securities and Exchange Commission (SEC) for approval.

        The merger or consolidation of banks, trust companies, insurance companies, public utilities, educational institutions and other corporations governed by special laws must have the favourable recommendation of the appropriate government agency before any application for approval is filed with the SEC. After the SEC is satisfied that the merger or consolidation is not inconsistent with the Corporation Code and existing laws, it issues a certificate of merger or consolidation, at which point the merger or consolidation becomes effective.

        Upon the effectiveness of the merger or consolidation, the separate existence of the constituent corporations (except the surviving corporation in the case of a merger) ceases by operation of law. The constituent corporations become a single corporation which (in a merger) is the surviving corporation or (in a consolidation) the consolidated corporation. Without further act or deed, the surviving or consolidated corporation possesses all the rights, privileges, immunities, franchises, property and every other interest of the constituent corporations, and becomes responsible and liable for all of the latter’s liabilities and obligations.

        Any claim, action or proceeding pending by or against each such constituent corporation may be prosecuted by or against the surviving or consolidated corporation. It should be noted that the rights of the creditors of each constituent corporation are not impaired by the merger or consolidation.

  29. Hi Ms. Fehl,

    Your blog post is already legendary among those who are curious regarding putting their money on investments. Just one little favor though, can you please add Manulife on those insurance companies you’re advising your readers to get. On my last count, at least two Manulife Financial Advisers added some valuable insights with your post. (btw, I’m also a Financial Adviser from Manulife)


    • Hi adrian,
      Nakausap ko ang axa kahapon grabe pala ang ginawa ng agent ko sa pera ko need ko daw tlga mgbyad ng premium Ko annually ng 150k modal premium ko kc is 100k regular top up is 50k if ndi dw ibabawas sa account value ko yung charges so mauubos lang pla yung pera ko kng sakAli never skn inexplain yan ng agent cnsbi lang mgdagdag dw ako. The best thing to do daw sabi ng axa main is pababaan ko ang sum insured ko to 150k nalang ung agent ko kc nlagay 500k and annual premium pagawa kng 30k nlang dw yan lng dw option. Sakit sa ulo. What do u think?

      • Hi. That’s the usual problem with insurance, oftentimes, di masyado iniexplain yung premiums, yung palagi inexplain nakafocus sa benefits and coverage. I hope your situation will be resolved. God bless!

        • Hi ms. Fehl,
          Ano po ba sa tingin nyo dapat kong gawin ndi nadaw pde irefund yung money. Mag 5 mos plang cmula ng pinasok ko yung 150k ang sabi skn ng customer service representative ng axa ang option lang dw is ptnggal ang regular top up premium na 50k at gawin 150k ang sum insured at 30k daw annually bayad for 5 yrs un lang daw tingin nyo po ok na iyon. So yung nattira po na account value ko is ok na yun nsa investment npo un ung premium na bbyaran ko na 30k yearly 35% dw nun chrge nd 65% s investment mailalagay ano po tngin nyo?

          • Since they allow you to lower your premium, I suggest you request the lowest amount you’re comfortable in paying and continue it coz sayang naman ang investment tied to your VUL and the insurance benefits. I hope it helps you than stress you po.

        • Yung 2,500 mnthly o 30k yearly daw yun daw option ko. Tngin nyo po sa loob ng 5 yrs mababawi ko yung 150k+150k total of 300k n maihuhulog ko s loob ng 5 yrs?

          • Hi Marie,

            Let me first say “sorry” in behalf of those good insurance agents. I hope na hindi ka madala sa pag-kuha ng future VUL or insurance products.
            Good news sa iyo kasi pwedeng ibaba ang coverage mo. Ngayon, you have two solid options,
            1. You continue to stay with your VUL with AXA. But here’s what you should do :
            a. Allocate your funds to their highest earning fund: equities
            b. Try to get a different agent that will handle your account
            2. You can stop and just leave the money you’ve given to AXA. A stress-free investment is priceless.
            a. Get another VUL product, either with AXA or another insurance companies.
            b. Be sure that the agent you’ll get will explain the whole process and product.

            Of course I’ll always be bias on where I work for (Manulfe.. ehem) . Anyway, at the end of the day, you always have the power to choose. Don’t let your situation hold you down. God Bless and let us pray for the best.

          • Hi adrian,
            Parang mahirap naman po pabayaan ko nalang yung ganung kalaking money sa axa na maubos diba? If ever na di ako mgbyad ng annually saknila yung fund value ko paubos nalang ng paubos. Malaking halaga sakin ang 150k sa ktulad kng walang trabaho. Plano kng iwithdraw ang pera ko kung ppwede dahil ndi nman kasi ako nainform mabuti sa policy ko ng agent. Hope maiwithdraw ko sya. Thanks sa time

  30. Hi. Good day.
    I am 48 years old, married with no children. Among the investments that you discussed, I have decided to get a VUL for me and my husband. I have inquired with AXA’s a and BDO’s agents (where I have my current savings), the proposals and explanations given to me are almost the same and they are so technical that I got more confused in choosing between the two… Hope you can help me decide. Thanks in advance.


    • hi lani, im jv bancassurance financial advisor of generali pilipinas (bdo life). VUL has Life Insurance which protects the future of the family through guaranteed death benefit . It also has Investment component that offers the potential for higher returns subject to market volatility.

      How does a Variable Life work?

      1) Premiums from clients are pooled into a unitized fund, after fees are deducted.

      2) A major portion of the policy premium is used to purchase units in the Variable Life fund.

      3) Investment Funds are managed by professional Fund Managers from BDO Trust & Investment Group.

      4) BDO Trust then invest the fund in various assets that fluctuate in value as market prices rise and fall. Since VUL has an investment component, it has the potential for HIGHER returns.

  31. Good day ms fehl! Im a big fan of your blog hoping you could help me in my dilemma. I am john and I currently have a life insurance that cost around 60000 pesos a year which I started back in 2011 and have to pay anually for 10 years. I know its too late when i realized that its too much for a life insurance with a face amount of 1M. And i realized i am more into investing to mutual funds and uitf. In your opinion is there anyway i can get out of my life insurance by just claiming even just the money that i placed in? Or i just have to wait and pay the remaining for 6 years? Im somehow confuse because its difficult to pay the remaining knowing that i can invest it to a mf or uitf which would result for better returns after 10 years. Thanks you so much for your suggestion.

    • I’m not very familiar with insurance. All I know is you have to pay premiums in order to be eligible of benefits. Some products have policies and they mature on a given time. I think you have to talk to your insurance provider to know your options if you want early redemption. If you are a government employee, GSIS has amazing insurance products and premiums are cheaper.

    • Hi!

      The first two years (under traditional insurance) is basically Thank you—meaning, wala ng babalik sa iyong pera. No, you cant withdraw all the amount you invested, only a portion of it, you can look sa Guaranteed Value section ng iyong policy. Hanapin mo ang year ng iyong hulog at makikita mo kung magkano ang pwede mong makuha

      Hope this helps. If you have further question you can text me at

    • Sir, 60K for 10 years is only 600K and yet you are protected for 1M. I think that’s a great deal!

      The real value of insurance is that it prepares you and your family for the ‘worst case scenarios’ i.e. early death or disability of the insured.

      Also, if you invested that in a VUL which is a combination of insurance and investment, by the 10th year, your 600K could have at least earned you additional 100K but could even double depending on the insurance company where you have invested your funds.

      VULs are for mid to long term type of investment. You get to use the power of ‘time’ and just let your money grow for a few years. VULs are good for those who have dependents and whose financial priorities are more inclined to education funding, retirement funding and fund accumulation. Education funding say if you have small kids and they will be going to college in 10 years and up time or Retirement funding if say you will be in your 20s to 40s and you will be retiring in your 60s then you will still have about 40 to 20 years to ‘compound’ your interest in your VUL investment.

  32. good evening po.. 🙂 i was actually given a vul proposal by an agent from sun life.. but i became hesitant.. hindi muna ako nag go.. then i come across this blog.. im thinking of pursuing it.. but i just want to clarify first… is it necessary to have additional premiums like death benefit, hospital, accident, etc? or its okay to stick with sun life flexilink only? which is better, with or without additional benefits? hope you can guide me through this. thanks. 🙂

    • It’s up to you if you want to add benefits. Their products are flexible naman. I suggest you add some if you don’t have any of them yet from other insurance.

    • Hi!

      Ideally sana mag add ka na ng Critical illness at Total disability. Kung baga foresight mo yan if anything happens in the future. May client ako na nagsisi kasi hindi nya pinalagyan ng Critical Illness tapos after 4 months na-diagnose sya na may cancer

    • Hi Miss Vina, I think it would be worthwhile to add in some of the what we call ‘riders’ kasi added protection siya. Example Waiver of premium, I think that is a must kasi it means should the payor becomes disabled , the insurance company will be the one to continue paying for the premiums. That is true even if nakakaisang pay ka pa lang. Then Hospital benefits and Critical illness naman protects you in cases of maaccident ka or magkaroon ka ng malalang sakit, hospital benefits will be given to you on a daily basis while you are in the hospital so pwede mo po un pambayad ng medicines mo man lang or other miscellaneous expenses while nakaconfine. While ung Critical illness na benefit, that is paid if bigla kang mastroke, magkacancer, or kung anumang critical na sakit (may list po un usually nasa 35 illnesses) na kahit sinuman pwedeng tamaan di ba? Then ung Accident or ADB naman at Term riders, pandagdag protection po i.e. dinodouble niya ung matatanggap ng beneficiaries nyo should your death be caused by accident so if may face amount ung policy mo na 1M then 2M ung marereceive nila , di ba okay po un? Though these riders don’t form part of your investment ung basic premiums lang po saka ung tinatawag na top ups. These riders are for added protection po.

  33. Hi ms Fehl. Wanna seek ur opinion po. My goal is to have our income to augment our target lump sum payoff for a home loan. Can leave 150k to 200k for the next 5 years as we target year 2020. Which do u think is better-Single pay or 5 pay? Choosing between philam money tree or philequity. Also got vul offer fr generali at 30k 5 pay. Thanks and more.power!

    • Hi Sir, I think if readily available naman po ninyong iinvest ung 200K, isingle pay nyo po. Then leave it for five years. If you are agressive , put it in Equity funds. But be mindful na since high returns ito, high risk din siya. So ang magiging basehan nyo na lang is the company where you wish to put the money and have it grow there. Dapat po ung company is steady ang fund perfromance for the last 5 to 10 years. Consider also the front end and back end charges i.e. charges pag nagstart ka mag invest at charges pag kukunin mo na ung investment mo after 5 years. Check mo rin sir ung tax implications once kukunin mo na ung investment mo after 5 years. Kuha kayo quotes from UITF , MF and VUL para macompare nyo magiging returns for each. So sabi naman po pag UITF, sa banks, sa MF sa mutual fund co’s whilst VUL sa insurance co’s. Yun lang po 🙂

  34. Hi! Thanks for this forum. I am just about to get a VUL in Sunlife but i am still in doubt. I’m single, employed and covered with health and life insurance by my employer. Do you think it’s better to invest my money to mutual funds and uitf rather than get a vul?

    • You already got some insurance, I think you can go directly to MF. If you want to add more insurance, then get VUL. It’s really up to your needs. 🙂

    • Hi!

      I suggest you get a VUL if you want to protect your savings with illness not covered by healthcard such as Cancer, Kidney Problems etc.

      Your investment in VUL can save you from future expenses.

      Hope this helps. If you have further question you can text me at

    • Hi Lyn,

      Ung health card I think they do have coverage for critical illness, check mo lang depende kasi sa position ng employee un eh. Life insurance sa company is ok only if you are still connected with the company. The moment, you resign from the company, mawawala na rin ung benefit mo na un kasi usually companies offer group insurance na pag umalis si employee, itatransfer lang sa susunod na employee.

      For diversification, since single ka, if kaya naman ng budget mo, get the three UITF, VUL and MF. Maganda kasi yan single ka, wala ka pa other responsibility , may extra time and money ka pa to invest in various instruments and vehicles. Unlike pag married na, limited na siyempre pambudget dahil may other responsibility na. Ung maiipon mo at kikitain sa investment tools na ito, pwede mong magamit in the future, say educ funds pag nagkaasawa’t anak ko or di naman kaya pang retirement or pwede ding pag start ng sarili mong business….the more time you invest kasi, the bigger the let your investments grow for say 5 years and so, pero if short term ang hanap mo, forex trading and stocks ang mas mainam…pero you need to be equipped din, aralin mo rin muna kung paano mag forex and mag stock tradings…

      Hope this helps.

  35. hi po i need your help in my decision po…in your view po saan po mas maganda mag invest sa vul or utif? i am torn between the two po kc i inquired at bdo on their utif but they insist that i should get their vul. my goal sana for the next 5-10 years is to put up a business with the help of the investment fund. im already a member of sss, philhealth and pag-ibig do you think being a member of these is enough as my insurance?

    • If you’re married and have your own family already, having insurance + investment (VUL) is advisable. Investments are risky so you must choose the one that suits your status, goal, and risk appetite. I suggest you invest 20% – 30% (money market or bond fund) to your business, the remaining to your other needs or other income-generating stuff. I choose Money Market and Bond Fund for you because you mentioned here it’s for business. Must not be involved in too much risks coz you can’t lose so much from that invetsment

    • Saveflex Secure is a regular premium variable life product that provides guaranteed life insurance protection until age 100. It is also an alternative long-term savings and investment tool that provides returns based on the market performance of the underlying funds chosen.You are right magra, 5 years to pay ang saveflex its up to you if gusto mo mag lagay ng topup..para saan ba ang topup? once naglagay ka ng topup,lumalaki rin ang sum assured mo pati yung fund value.

  36. mam fehl,

    1. uitf’s are offered by banks only right?? may mga nagsasabi ndi lang sa bangko eh
    2. UITF and MF po ba is liquid, i mean anytime pwedeng i-withdaraw??

    sorrry newbie here, thanks in advance.. Good day

    • 1. UITFs are regulated by the Central Bank of the Philippines (BSP). Never heard of UITF offered from a non-banking institution. Maybe soon. Time changes and laws as well
      2. Yes, you can redeem and withdraw anytime unless you signed or enrolled in a fixed term, you need to pay early redemption fee. That is unusual though because UITFs and Mutual Funds are very flexible.

  37. I’m so glad to find this online discussion on MF, UITF, and VUL. Since there was already a lengthy discussion on which fund is best for a specific purpose. Now, let’s have a head-to-head comparison on these investment products say — if I invest P100,000.00 each in UITF, VUL, and MF, which investment has a better capital appreciation or potential returns in the next 10 years? Can anybody here provide a sample computation using current performance of each investments? I just want to be enlightened before I decide to invest. Thanks in advance. Kudos to Fehl for opening this discussion. Merry Christmas everyone!

    • Hi Diyegow. I will grant that request. I will post comparison of 100K for MF, UITF and VUL. If the holidays would permit me, I would try to post it here before the year ends. Cheers!

      • Thank you Ms. Fehl, the discussion here is I think one of a kind. I can’t find anywhere in the net discussing these three investments in one forum. So it’s really a big help for a newbie like me to better understand where to invest my hard earned money. If you ask an agent offering VUL he will surely endorse his product. Same with MF and UITF guys. So it’s best if you can have an objective comparison so we (your readers and fans) can also decide wisely and not fall into the hype of each investments. Will wait for the report Ms. Fehl. May God continue to bless the works of your hands!

      • Happy new year everyone esp to you Ms. Fehl… pls don’t forget my request above. Thank you. More blessings in 2015.

          • Hi Ms Fehl, what will happen to an account in UITF or Mutual Fund in case the acccount holder dies? Does it specify a beneficiary just like VUL? Or will it go to the state?

          • The account will be closed and the funds will go to the spouse or closest family but there are requirements and docs to sign for that. As for VUL, the claims will go to the beneficiaries listed on the plan/insurance.

          • Hi ms fehl, im still waiting dun sa promise nyo to show a comparative potential returns say 100k investment each for MF, UITF, and VUL in a span of 5 or 10 years. With the already lengthy discussions made here, I think it’s good if we finally put the numbers here. As an investor I think the first question to be asked is how much money will I make for each investment vehicle. I bet if somebody can show them here it would then be easier for your ‘fans’ or followers to decide. Those figures will speak for itself and will be valued more than the words or hype of each investment vechicles uttered here by those who favored one over the other. Thanks.

          • Hi, Diyegow. It was posted last month pa 🙂 Wow, I thought you already read it. Go to our homepage, you’ll find it 🙂 Cheers!

  38. Very nice comparison between the three.

    I myself will be getting a VUL (Almost a done deal with Sunlife’s Maxilink Prime) and a MF (a toss-up between PEMI’s Equity Fund and FAMI’s Equity Fund) before the year ends as my Emergency Fund ballooned so much I have to diversify na.

  39. Ate Fehl good day.. once again thank you for this very helpful site of yours.. 🙂 would you consider having two or more VUL’s? or okey na ang isa then invest ko na lang yung iba sa MF’s? kasi nga d ba subject for estate tax nman yung MF’s? let’s say in the next 5yrs ko pa gagamitin ang 100k, where would you suggest kung saan ko po magandang ipasok? thanks in advace for the reply.. more power!

    • In my personal opinion, 1 VUL is enough coz I’m single. If you want to add another investment product like a regular Mutual Fund, just do it. Estate Tax is only taken on the death of the client when her investments, profits, assets will be handled to the heirs/beneficiaries. Again IMO, we invest to enjoy life more not to gain more when we died.

    • Hi Mackie i suggest you ask for a financial advisor advise para ma plan mo ng maayos ang future financial plans mo. Marami kasi aspects na dapat i consider like; your insurance needs, retirements, investments and estate tax if you have accumulated wealth na. Insurance and investments pa lang ay masyado marami options base kung ano ang pangangailangan mo:) look for an advisor na pwede mo pagkatiwalaan.

  40. I would just like to correct some statements : VUL is the cheapest if the Financial or Insurance Adviser gives the cheapest plan. there is one that you can start at 22/day or around 600+ per month, and thats cheaper than the 5K minimum for Mutual funds and UITF. Also, not all insurance advisers or financial advisers will push big insurances and expensive amounts to clients just to get a huge commission. Some of us genuinely want to educate people. Maybe create an article on what to look for in a financial adviser. Insurance is non-taxable which is why many people go for single pay insurance/investment tools as well. Also VUL Compared to MF and UITF–advantage is getting the money when something happens to the owner.

    • Tama po.kaoopen ko lang po last year ng VUL at MF.ngbabayad lang po ako ng 5000 quarterly sa VUL ko kasi kinausap ko agent na kung pwde medyo mababa lang kasi may binabayaran din kasi akong insurance dito sa abroad.kaya pag mag- apply po ng VUL ask the agent kung ano lang po ang kayang bayaran para hindi magkakaproblema.

  41. Im glad meron gnito to enlighten us esp ofws.aftr reading all urcomments mejo ngkaron ako ng confusions sa mga investmnt ko.hope mbgyan nyo ko mgnda advise:1.i have 2 money secure 88 sa generali pilipinas.i understand VUL type ito but now im planning to decrease my premium to half pra mginvest na lng sa mf or u think its a good decision or ikeep ko na lng until mgmature? 2.i already have my emergency fund invested in time planning to widraw na lng and invest din in mf or uitf.i need ur suggestions badly kc wla tlga knkita for how many yrs now.kya lng iniisip ko ms mdali kc iwidraw sa time deposit in case of emergency eh.pls find tym to give ur advice.tnk u so much in advnce.

    • Hi tita,kung may vul na po kayo,kuha nalang po kayo ng uitf or mutual fund.pwede din both,para hndi nasa iisang investment vehicle pera nyo 🙂

    • If your account in Generali is not performing so well, yes you can do that. I also suggest you invest your emergency funds to Money Market Funds or Bond Funds instead of Time Deposit 🙂 Redemption is very easy too just like withdrawing TD

      • I dont know how to check d performance of generali.if ask ko nmn agent im sure ssbihin nla ok nmn.i guess un na lng gwin ko pguwi.syang din kc ilan yrs na din un dun.tnx a lot.God bless.

  42. Maricar nasa blog ni Ms. Fehl yung information about sa UITF… UITF is offered by banks, mutual funds din sya and a good investment for long term. iba’t-ibang klase ang fund na pagpipilian mo.. It depends sa risk appetite mo.. Kung aggresive ka go for the equity funds pero wag ka nenerbyosin sa up and down ng NAVPU = Net Asset Per Value.. As i have said previously kung longterm ka naman (10 years- 20 years) stick with your plans sureball ang return nun (that’s how positive I am pagdating sa Long Term investment). Ako meron naman ako sa BPI equity funds.. Magbasa ka lang ng magbasa madami ka matututunan. Ang the best part ng ginawa mo ay nagsimula ka ng magipon katulad ko.. 🙂 Para maintindahan mo ng husto paguwi mo pumunta ka sa bangko like BDO or BPI tapos mag inquire ka about UITF investment. WAG KA NA KUKUHA NG INSURANCE+ INVESTMENT if ever offeran ka nila meron ka na eh… Hanapin mo doon yung Trust Representative ng UITF. Ang 2 horses ko for my future are 1) VUL 2) UITF in equity funds… God Bless!

    • Thanks jomar for the infos.ok sige pagnakapagbakasyon ako sa dec sasadya ako sa bpi kasi dun ako ngpaopen ng account sa pinsan ko magtatanong ako bout sa uitf na sinasabi nyo. Oo d nako kukuha ng insurance+ investment kasi un na yung una kong pinasok sa axa e saka medyo malaki dn ata kc ung napupuntang charge sa insurance. Anyway thanks a lot! Godbless..

  43. Ok aviddyu tank you very much sa time and effort na basahin lhat ng concerns ko. Mas ok kapa kausap kesa sa financial solution specialist ko tipid sumagot at kulang kulang pa mga answers nya. And parang inis na sa kakulitan ko. Thats why ndi na ko masyado nagttanong sknya and medyo naliwanagan nman nko sa tulong nyo specially sa help m.

    • My pleasure po ate maricar 🙂 an advisor,it’s our goal and responsibility to give a sound financial advice/solution based on your financial goal…kaya wag po kayong mahihiya magtanong kung may gusto kayong malaman,esp dun sa financial solution specialist na kausap nyo,kasi responsibility ka nya,at right mong malaman ang di mo naiintindihan 🙂 to minimize the risk of investing,i suggest that u also take time to educate yourself about investing since you are already on it 🙂 financial education is the kay 🙂 yun ang magandang gawin para di na kayo nagwoworry,at the same time malaman mo ung mga gagawin mo.tska dun kayo magtanong sa mga taong talagang willing kayong turuan,tulungan at iguide sa gusto nyong gawin. Talk to the right person 🙂 thank you po ulit.take care and God bless po sa inyo… 🙂

    • Mr. Aviddyu sobrang thanks ah sa lahat lahat dami ko natutunan sa mga sinabi mo. Nga pala i mailed my financial solution specialist bout s mnthly o yearly ko nd if ung 100k is premium ko eto lang sinagot nya. (kung kailan ka lang makadagdag next year ok na rin iyon .. but kung talagang saving ang iniisip mo kailangan mo lagyan ng at least or ideally of 8k a month next year. kung hindi kung ano lang na ilagay mo ang syan babasehan ng iyong investment) i dont know yet if mamimeet ko ung 100k mnthly parang mhrap kc wla nman akong work. Pag meron mgdadagdag nalang cguro ako any amount nman will do diba and dagdag dn un sa investment ko kht d nmn 100k as un. Or pag wla yaan ko nlang mna umikot ung 150k total malaking money nmn ndn yan right? Thanks tlaga ah sobrang dami ko pa tlgang katanungan as in kc ngpasok ako bsta basta sa vul ng axa ng wlang masyadong idea sa gnun pro mgnda nmn dw tlga lalo n pag long term at d ginagalaw at dinagdagan. Thanks sau at sa page nato ni ms. Fehl it helps me a lot. Ska sau ndin jomar salamat, mgnda nga dw ang philamlife kc ang frnd ko is financial advisr pla ng philamlife bpi sknya dn ako nnghingi ng idea kht ppano sayang nga lng huli ko ng nalaman sa bpi pla xa under philamlife.

      • Hi ate maricar.ah i see,so parang top up lang pala.ok cge, magdagdag ka nalang pag may extra kang pera.any amount will do,at least minimum 1000 for top up 🙂 magtanong ka lang sa servicing agent nyo pag may concerns kayo…mag top up k nalang para ma cover ung nawalng pera dahil sacharges incurred by ur policy….ung uitf mganda din un…halos parehas yan sila ng mutual fund.u can read the article made by ms. Fehl dto mismo sa site nya.may topic dun about mutual fund vs uitf 🙂 happy reading ate maricar. God bless po 🙂

        • hi aviddyu,
          You said min top up is 1000 pero sabi ng financial advisr ko atleast min of 10,000 daw for top up. What do u mean nga pla for modal premium ang regular top up premium. Diba as i have said before 150k ang pinasok kng money sa vul axa axelerator plan sa wealth equity fund bale nkalgay sa policy details ko is modal premium 100k regular top up premium 50k total premium due is 150k payment mode is annual yan ang policy details ko. So ano tingin mo jan nu ba ang pinakamgandang gwin ndi ko kc alam ang rules jan sa pinasok ko. Wla dn nmn p akong work. Sabi ng financial advsr ko mgdagdag dw ako bale for top up yun psok sa investment wla ng bwas na premium charge dw drecho investment na. Aviddyu help me nman kung ano ba pinaka best thing to do pls.. Wait ko reply mo and if meron pa po iba jan na pde mgbigay advice feel free to comment po. Thanks

          • Hi Ms. Marie,

            Medyo mabigat ang situation mo ngayon. Ask ko lang, how many years to pay ang kinuha mong plan? And how much and covered insurance mo? And ano pa ang kasama sa insurance mo? (accident benefit? critical illness ? etc)
            Technically, you need to pay the 100k modal premium per year, yun ang base ng VUL mo. Ang recurring 50k, optional naman yun.
            First thing you need to ask if there’s a “premium holiday” with your plan, meaning may one year ka na pwedeng hindi magbayad ng premium mo without any consequence.
            Next, you need to get a job so that you can accommodate your plan. (if you are interested on becoming a financial agent too, prompt me)
            Last, you really need to keep this plan. Kasi sayang pag nawala lang and kainin ng mga charges.

            Hopefully may natulong ako. 🙂

          • Hi ma’am Marie,

            Based sa sinasabi mo ngayon,bale ang babayaran mo yearly sa plan mo is 100k,plus ung 50k na top up yearly din..mejo mabigat nga po yun ma’am lalo sabi nyo nga po wala kayong work ngayon at un lang savings nyo..Meaning you have to deposit 150k per year kasi yan ang nasa contract nyo 🙂 hindi ko lang alam sa AXA talga kung magkano ang minimum na top up nila..pero ang alam ko sa PHILAM and SUN LIFE ay 1000 lang ang minimum top your case,maoobliga ka talga to add top ups per year,kasi naka indicate dun na regular top up mo is 50k.. Well,sabi ko nga po,if you find na hindi suitable ung plan na binigay sayo,u can return it naman po sa kanya within 15days after mo nareceive ang policy contract nyo..irerefund po yung binayad nyo together with the initial charges and look for another plan na bagay sa need nyo. You have the right po to do that..but if more than 15days na ung policy contract mo from the day u received it,hndi kna makakapagrquest ng refund nyan..kelangan mo nalang talga ituloy ung plan hanggang mabawi nyo capital nyo,but it takes years po bago nyo mabawi un.dahil sa mga patience nalng po at talagang wala kayong choice kundi bayaran ung full amount non every year,otherwise,kakainin ang fund value mo at mas mahihirapan kang bawiin ang binayad mong premiums…sadyang may mga agents lang talaga na mapagsamantala(sorry for the term). I’m not being judgmental here,sabi ko nga hindi diniscuss sa inyo ng buo ung plan na kinuha nyo at sya lang nagdecide lahat kung san nya ilalagay.dapat po un dinidisclose lahat sayo,para ma assess nyo din po sa srili nyo na para talga sayo ang plan na kinukuha nyo..

        • Hi aviddyu,
          Tumawag ako sa main office ng axa kahapon dun ko nga lang nalaman yung about sa policy ko. Minail ko yung agent ko lage sinasabi na magdagdag daw ako for top up daw yun pasok na sa investment wala daw charge ng premium pero nver nya inopen sakin na i need to pay 150k annually. Grabe talaga alam naman nya na ang purpose ko lang is may mapaglagyan ng pera ko sa mhbang panahon ng safe di ko need ng malaking interes. Sabi ng main sa axa ang gawin ko nalang daw is pababaan ko ng 150k yung dating sum insured ko na 500k at patanggal ko daw ung regular top up premium na 50k at magiging 30k nalang yung annual kng babayaran yan lang daw option ko. Mg 6 mos plang ung pera ko like nalang sna iwithdraw ang policy ko kaua lang d ata pde yun tingin mo ol na yung bngay nilang option 30k annually bbayaran ko 5yrs tpos sum insured is 150k. So yung natitirang account value ko is mddgdagn nlng sa tuwing mgbbyd ako annually pgkksbi skn 65% s investment 35% chrge s premium ok nb un? S 5 yrs kya mababawi ko yung 300k n total na ibbyad ko sknla kht n wla ng interes. Di ko n mcontact ung agent at d sya sumasgot sa mails ko e. Grabe bigat ng ginawa nya sa pera ko kumita lang.

          • Hello Ma’am Marie,

            Kung ganon po ang sabi ng office,pababaan nyo nalang po ang sum insured nyo para bumaba din po ang premiums na babayaran nyo yearly..mabigat po yun sa part nyo..anyway,so di na nga po yan maccancel kasi matagal na ung policy nyo na in-force. Tsaka i don’t think na mababawi nyo po ung pera nyo in 5yrs time due to the charges incurred by your policy. Ang pagkakaalam ko din kasi sa AXA axelerator nila.for 3yrs ay 35% ang charge sa premium mo..bale 65% lang lagi napupunta sa investment nyo.nagpagawa din kasi ako ng proposal nyan sa isang agent sa product nilang axelerator.PLs check your policy contract for more details about charges..kaya hindi nyo po un mababawi in 5yrs time,one more thing,ung VUL is designed talga for long-term investment. So marerealize nyo lang po ang returns o tubo ng investment nyo if more than 10yrs na ung investment nalang po ang gawin nyo,ang pababaan ang premiums nyo para hindi mabigat sa part nyo. Well,if ganyan nga ginawa sayo ng agent mo,ang masasabi ko lang,gusto lang nya kumita,hindi nya inisip ang magiging effect sayo..basta inuna lang nya sarili nya.

      • You’re welcome Maricar. And all of you are always welcome here. If you invest in the following companies, you don’t have to worry: PAMI (Philam Asset Management, Inc.), Sun Life, PEMI (Philequity), Pru Life UK, AXA, FEMI (First Metro Investment Corp.) BPI ALFM and ATR Kim Eng

  44. Thanks po mr. aviddyu for wasting time na sgutin lhat ng questions ko it really helps me a lot medyo natanggal na ung ibang takot at worries ko siguro need ko nalang magsave ulit ng money para madagdagan ung pinasok kng pera pra mkpgtop up pro ndi cguro ganun kalaki as what my financial solution specialist told me. Pde nman cguro un kht d ko mameet up ung cnasabi nyang price right? Uuwi ako sa dec ng pinas cguro mag aask nadin ako sakanya nhihiya kc ako dhl sobrang dami ko gsto itanong e. Sya kc lhat prang ngdecide san ipinasok ang pera ko. Thanks po.

    • No problem po ate maricar 🙂 i hope natulungan kita sa mga concerns nyo po 🙂 yes ok lang po yun kahit hndi parehas na amount ung ipasok nyo every month/year.pero better po tanungin nyo padin ung fnancial solution specialist na kausap nyo if kung yung premium nyo po na binayaran is one time lang or regular pay siya..kasi kung regular pay yun for 5years,kelangan nyo po un bayaran same amount per year…tama po yan,wag po kayo mahihiyang magtanong at wag nyo basta2 ibibigay hard-earned money nyo ng hindi nyo po naiintindihan lahat.after all,pera mo padin yan.buti kung maliit na halaga lang yan..if i were you,try to contact the person who offered u the plan,para maclarify nyo ung mga concerns nyo about dun sa babayaran the same time,makapag prepare din kayo kung sakali man na babayaran nyo padin ung same amount for 5years.tanungin nyo po kung ung sinasabi nya na idadagdag nyo monthly kung top up xa o pang regular premium mo para magkaroon ka peace of mind 🙂 thank you po

  45. Marcar if you have an extra money and it suits your budjet then top-up if not and short ka naman just pay for the premium until the end of your contract… in the long run rest assured ka naman na magkakainterest ang pera mo. About naman sa sinasabi ng financial advisor mo to na kailangan mo magdagdag monthly ng 8k or 100k yearly baka naman yan ang premium mo for the 5 years? So ibig sabihin you nid to pay talaga your premium to be covered by your insurance… wag ka matakot sa up and down ng stocks normal lang yan so as I have said if you are for the long term it will be a gain in the long run so kung ako sayo finish your premiums nde ka na lugi tumubo pa pera mo… There after, pag matured ng pera mo after 5 years kunin mo na lahat and I advise you to get term insurance at invest mo sa uitf ang sobrang pera mo… Para diversified pera mo at nde ka kinakabahan.. Hope my advise help you and for your information I have a vul also from bpi philam life called build plus peso and plan ko to finish it within maturity age premium ko 103k for 10 years and then I will redeem it. God bless!

  46. Ung sinasabi din po nila na dapat magdagdag ka monthly ay para mabilis tumaas ung fund value nyo,at maka take advantage sa pag appreciate ng price over time,at xmpre strategy din po un gamit cost-averaging method…regardless kung mataas o mababa ang price,magpapasok padin kayo dun chosen fund nyo 🙂

  47. Pag time deposit,mababa po ang interest 🙂 ok na ung vul mo.ituloy mo na un,anyway matagal m p naman xa bago kunin..kaya ok lang yan..tsaka bumababa din ang risk pagka long-term,usually kasi ung trend talaga sa market is pataas eh kahit nagffluctuate 🙂 para di ka po nagwoworry sa iniinvest nyo,take time po kayo na intindihin lahat ng sinasabi nila at pag may questions kayo,wag po kayo mahiya magtanong,because u have the right to know everything before kayo magdecide at maglabas ng pera 🙂

  48. Oo pang long term nman tlga ang balak ko. Dapat tlaga time deposit ko lang sana pero ung metrobank yan nirecommend skn. Do i need to add pa ba next year sbi kc ng financial solution specialist need ko dw mgdagdag atleast 100k yearly or 8k monthly, sbi ko nman sknya i dont know yet pa if may mppasok akong gnun kalaki what if di ko mdagdagan un what will happen? Mdagdagn ko mn d n cguro gnun kalaki. Balak ko by nxt yr mag sunlife or philamlife if may extra png money.

  49. Hi malou,i’m a financil advisor from sunlife.i was bothered about ur concern…just want to tell you that all vul plans have cooling-off period.meaningto say,upon approval of ur policy,you have 15days to review the policy contract,and if you find that it is not the right plan for you,u can simply return the policy to the servicing agent or just go directly to the office and tell them that you’re gonna return the policy contract para maprocess nila your case,naapprove ung policy mo on oct 7 right?try to ask the servicing agent kung hawak na nya ung policy mo,kasi kung naapprove na,dapat hawak n nya policycontract mo para maibigay sau at mareview mo..then try read the contract,nakalagay dun ung sa cooling-off period..pls be reminded that the cooling-off period of ur policy is upon receipt of your approval date. I STRONGLY SUGGEST THAT U TALK TO THE FINANCIAL ADVISOR IMMEDIATELY regarding ur concern.kasi kung naapprove policymo nong oct 7,ur cooling-off period will end on oct 22,para maibalik mo ung policy contract mo..if u were able to return it within the cooling off period,they will return to you the amount u invested including the charges incurred by ur policy,if not,u may realize possible loss on ur pag mtapos na ung cooling-off period mo at di mo naibalik,better to let it stay invested nalang kasi malulugi ka…anyway it will earn interest naman in the long run..i hope this helps and gives u peace of mind..

    • Thanks for the advice aviddyu.wla kc ako sa pinas sa ngaun e by dec pko ult mgbbakasyon.sabi ng pinsan ko nung oct 17 dw dmtng ung contract s bhy sya sna pagpupull outin ko nung ininvest ko sa vul axa pro ndi nya agad maackso. Wla ako kht anong kind ng insurance nman so tingin m ok din ung pinasok ko sa axa? Is my money safe nmn at di mglalaho ng bula as stock market goes down kng skali. Sbi kc frnd ko mgnda nga dw sunlife ang philamlife.need ko pdw mgdagdg ng 100k mnthly is it necessary b wht if wla ako gnun halaga?

      • Ah ganon po ba?no problem un kung wala ka pang insurance..anyway u need that too..yes ok lang yan,eventually mbabawi mo din yan..just let it stay invested for the long term,para mag grow 🙂 un din naman goal mo db pang long-term..kelan mo ba xa gagamitin?opo ok naman po ung mga companies na nabanggit nyo 🙂

  50. Hindi ko nalang cguro un dadagdagan like ung sinabi skn ng agent n 8k mnthly o 100k yearly. Continue ko nalang siguro gang sa dumating ung 5 yrs nya cguro kahit pano ok naman na un. Ndi ko naman hangad ng malaking interes din e. Sa ngaun kc malaking bagay ang 50k kng ipull out ko un sayang po diba? Thanks and pasensya n.

  51. So u mean ms. Fehl tapusin ko nalang ung buong 5 yrs contract with VUL AXA? Yun ung pinaka thing to do. Kailangan ko bang magworry bout dun sa money? Magiging zero kaya yun bigla what if bumaba lalo ung stocks? And sabi pa nung financial solution specialist ng axa need ko daw mglagay ng 100k sa loob ng isang taon or 8k monthly kailangan b tlaga un what if wla akong pandagdag sa 150k n unang pinasok ko sa vul what will happen? Wla nmn dn akong work right now. Pasensya na sa sobrang daming katanungan. Ndi ko kc alam ang dapat kung gawin basta nalang ipinasok ko yung perang 150k without any idea sa ganun and lhat ng un ung agent ang parang ngdecide kung san ilalagay ung pera ko. Ngayon worried ako sa katangahang nagawa ko ndi ko nman n mapull out dhil sobrang luge na ako. Sana masagot mo ms. Fehl lhat bg bumabagabag sa isip ko ndi nman kc ako mayaman pra ndi icpn ang 150k lalo pat nakalaan un sa future ng anak ko. Thanks and godbless!

    • I don’t know the full details and features of the VUL you got but if you are doubtful, un-comfortable and not satisfied with what the insurance rep. has put you with, better pull it out and just invest on Mutual Funds. Switch to something you are comfortable with and you are fully aware with. Investing is a serious business. AT the end of the day, it’s your peace of mind that matters 🙂

      • I want to pull it out na nga po kaya lang base sa mga nalaman ko hindi ko na makukuha yung buong 150k n pinasok ko bawas na daw ung charges tapos kng mgkano nalang daw ung account value ng pera ko ngaun un nalang daw mbabalik as if minitoring nsa around 104k nlng sya may iba p atang ibang charges kaya sobrang talo ako. Pero for long term ko tlaga sya di ko sya gagalawin sana basta safe and ndi mawawala. Sorry ms fehl sa pang aabala.

        • You’re welcome to ask and share anything here 🙂 I recommend you place in in Bond Fund or Money Market Fund coz it’s less risky. Sun Life and Philequity are really great MF companies

  52. I am 55 y.o. and due to retire in 5 years. All my 3 kids are already gainfully employed and are no longer dependent on us. My husband and I have TD’s, UITF (mainly equity, with some balanced and bond funds), MF and Index funds as well as the stock Market. About 35% of our funds are in TD’s, 10% in stocks and the rest in the other investments I mentioned. My husband already has 2 insurance coverages (one is VUL) but I do not have any. Our office has a group insurance, though (but that stops once I retire!). I got a VUL offer from BPI-Philam with the usual coverage including health care benefits. The thing is, I was diagnosed with stage 1 cancer last year and have undergone surgery and completed chemo early this year (I am cancer free, based on my metastatic work-up last week). I feel I am not qualified for the health care component (hospitalization etc) of the VUL. Should I proceed with getting a VUL, even if I will not be getting the full coverage (specifically, the health component) but will still be paying the full premium? If I do get a VUL, it it better to pay one time or the regular payment type? Both my husband and I are SSS, Pag-ibig, Philhealth members. But of course, the Philhealth coverage is just a drop in the bucket of my med expenses and out office hospitalization coverage was not enough to cover the rest of my medical expenses when I got ill. You can say that both my husband and I are preparing for our retirement.

    • If you won’t be getting the full coverage, why still pay premiums. Just switch to regular Mutual Fund instead of VUL. Have you watched Rated K last night? A cancer-miracle drink was featured. It’s called Chocolate Soup. You might want to check it out even if you are already cancer free. God bless you!

  53. Hi ms. Fehl. Nag invest ako ng 150k sa axa phil. And about sa ininvestan ko honestly ndi ko msyado naintindihan ung mga sinabi sakin ng financial solution specialist that time. Bsta ang sabi nya investment and insurance daw tpos 5 yrs ung min nd ung pera ko is pinasok sa phil equity fund like pldt ayala malls etc. nd nka insured pdw ako ng 500k sknla once n my nangyari sakin makukuha dw un ng beneficiary ko. Ask ko lang sna if bat ganun dumating sa akin na mail is premium ko is 100k lng tpos ung 50k gnwang top up tpos ang dami p plang charges. Tingin m magiging ok lang kya ung ininvest ko ndi kya un maglalahong prang bula lalo n nkdepende pdw s stock market ung account value ng ininvest ko. Oct 7 lang this year naapproved ung policy ko lhat ng bnyad ko is 150k pro pgkacheck ko ng account value ko is 104k smthng nlang tingin nyo po dpat ako mgworry at matakot pra kc sa anak ko yan sa future nya kya nga prang gusto ko ipull out pero sbi skn ng frnd ko wg dw dahil luge ndw ako gnun dw tlga dpa dw agad mkkta ang interest nya s ngaun lalo n bgo p pro aftr a yr ptaas ok ndw yn ska mlaki lng dw kc tlga charges ng axa. Sbra tlga ako ntatakot ngaun bout sa 150k n ininvest ko sknla. Pls reply po sna thnks

    • Right now (October) equity funds are down talaga and actually pati stocks. With VUL, you have to pay premiums since your investment have insurance mix. For equity funds, you will have more earnings if you invest them for 5 years or so. VUL are only recommended for those without insurance. However since you already have VUL na and you are required to place it in 5 years, just let it be and wait for its earnings to come 🙂

      • Hi Maricar I am a former advisor of AXA , though late na reply ko i hope i can still help you with your case. Your case was a normal case with a client and an advisor which is not honest judging your story. Dapat sana ay one time placement of 150k ang nangyari.pero ginawa nya na regular premium + top up for 5 years. In your case lugi ka if you will pull it out kasi you will be subjected to many charges however if you dont have money to pay for the other 4 years of premiums ay liliit pa ang account value mo kasi next year you will be charge of another 35% of 100k(premium) + cost of insurance. Since sabi mo wala ka na pambayad, ito sy ibabawas sa account value mo kaya ito ay mas liliit pa. Then the last 35% will be charge on the 3rd year + cost of insurance kaya paliit ng paliit. Now if you opt to continue the premiums of 100k for the next four years then you can possible be even maybe on th 10th year. If you have more question you can reach me to my email

        • so dr. edwin salagoste ano po b mas maganda kng gwin? if itutuloy ko po sya mgkano need ko ibayad mnthly?d man lang sakin pinaliwanag to at yung mga huhulugan ko sya lahat nagdecide kung san ilalagax ang pera ko sabi ko sknya ang akin lang gsto ko parang time dposit kht knti interes ok lang bsta safe n nakatago ang pera ko. pls gve me sme advce po. bka maubos nlang ang pera ko bgla mgng zero account value nlng to possible po b un gang 5yrs dhl s mga charges.

  54. Good morning po. Una sa lahat maraming salamat dahil napadpad ako sa website na to. And napakainteresting kaya ndi mo maiiwasang icheck lahat ng articles. two thumbs up! 🙂

    Pero may tanong lang po sana ako sa perspective nyo sa Variable Life Insurance (VUL) with respect sa inflation rate dito sa Pilipinas? May offer kasi skin ang isang life insurance company na annual premium of 18k (10 pay) tpos after 38 years, magiging 2M. iniisip ko kung gano ang magiging epekto ng pera ko with respect sa inflation rate. Salamat po! 🙂

    • Hi Miguel! Thank you for the nice comment. If you don’t have any insurance and investment yet, I suggest you get VUL. But if you already have insurance, just get a Mutual Fund. I also suggest you get VUL or Mutual Fund from decent companies only like Sun Life, Philam, Pro Life UK, Axa because they are strong companies.

  55. just a few question lang po.. what if i have a 100k. and im earning a minimum wage, is there any option to invest my money n walang monthly? i heard something about one time downpayment in bpi. im not familiar about it.. can any own help me to explain about it.. thnx in advance

    • I’ve answered your question from my other post here. Regarding the BPI investment, give us the type of fund so I can make a post about it here and explain it well. God bless!

    • Hi jay, you can actually invest it in VUL single pay, you can just do top-ups if you have excess money and your family is protected with 125% of your 100k if anything happens.
      Hope this helps! 🙂

  56. Hi ms fehl,

    Are you familiar with manila banker’s life insurance? I wanted to get a life insurance.. Which one would you recommend? Thanks po..

  57. Thanks, good article.

    I have a question, I have 2 kids and i’m planning to get an educational plan for them. Is this a good idea or I just have to invest it in either UITF or MF?


    • Hi guyven69, fel

      Thank you for the very informative post.

      I am a financial consultant too. We have a flexible VUL plan that you can use either in education, retirement, travel or major purchases because this is withdrawable when you need. It has basket of benefits due to riders so when you have critical illness, you don’t need to spend your hard earned money. Prulife UK will give you a separate check for these needs. such as permanent disability, accidents, etc. I myself have investments here because I believe in these products. Our fund manager is East Spring investment, awarded as no. 1 in the ranking of biggest fund manager in Asia. You can see comparative rates too when you want to know the historical and current return compared with others who also offer VUL, MF and UITF.
      I never liked traditional insurance company before because of death benefits only. But now that they have VUL, it has living and death benefits, at the same time investing. Win-win talaga. No worries na masasayang

  58. Wow! Good read… I have a question, I also have a VUL and I’m planning to top-up on my funds annually… Does it mean that my funds is not under the estate tax because it comes with my insurance .. I just want to be sure with my thoughts… thanks a lot

  59. If you need assistance regarding your plan to get vul in sunlife, i’d be happy to assist you if there’s no one who can assist you 🙂 thanks….

  60. Oh really?actually im planning to get uitf this year also.i was inspired with what you shared 🙂 i also want to get mf. Yes vul is nice,for me sunlife has the best vul product that suits in every individual’s need. Aside from its impressive returns,their best selling product is one of the cheapest and most affordable compared to other vul products from different companies 🙂 no offense to other companies 🙂 peace. I can tell this because i have one in sunlife.very affordable for every employee who wishes to have an insurance with savings 🙂 and that made sunlife no.1 in the phil. Moreover, they have also the mutual fund which is pure investment for those who dont want insurance. I’m planningto get 1 from them 🙂
    Do you have a friend who is a financial advisor from sunlife?you can ask him/her 🙂 thanks fehl 🙂

    • hi aviddyu.. i’m interested kc with VUL.. just want to have an idea sana of the monthly/annual premiums and coverage and all other things I need to know about VUL.. thank you so much..

        • Thanks Ms. Fehl for this informative blogs! and to ALL who contributed facts about financial stuff…it’s giving me more idea
          I’m a newbie…
          I have been reading it from the start…
          I have UTIF but I would like to try VUL perhaps you can recommend someone to me please.
          I work abroad so I wanna make sure that the hard earned money I have will go to something useful and will grow…


  61. He fehl,

    Just wanna ask which has better returns between UITF-equity and Mutual Fund-equity over the past years? Do you have an idea? Thanks a lot 🙂

    • Honestly, I love both of them: UITF in Equity and Mutual Fund in Equity. I have personal UITF in Equity and it’s been impressively rewarding. I’m not doing anything, only letting my money stay on it but it’s giving me more money every month. I wish I knew this when I was 5 years old LOL Since I’m also into stocks, I don’t have MF yet but planning to have VUL with Phil. Equity this year in Sun Life. I’m also impress with the graphs of it.

  62. Hello Ms. Fehl,

    Question lang po. Have you heard home fund for 5 years in insular life? Maganda po ba yon? How it works po ba? Kasi ini offer yun sa office nang husband ko, which we pay every pay depende kung magkano and were planning to choose the 650 every pay. Hope you’ll enlighten me po before kami makuha. I want to know more pa po kasi

    Thank You

  63. Hi Ms Fehl, good blog. Short but very informative.

    This is just confirmed that there is VUL-Variable Universal Life here in the Philippines, because last night I spoke to one of WFMA Managing director and she said that I should review the proposal that was given to me by an insurance agent because VUL is only available in US. Which I don’t believe because Sun Life has VUL products, right?


  64. I agree Ms Fehl. But, aren’t most VULs place their investments in MF or UITF? Furthermore, once the client stops paying for the insurance premium, won’t they get the premium payment from the investment “future” gains, provided that the funds do gain after 5 or 10 yrs.

    • The features and offers of VUL are very wide. It depends upon the specific type or class of their products you have chosen. Just read and contemplate on the specifics options and offers of the VUL. If you already have insurance somewhere else, why opt for them…

  65. I beg to disagree, MFs are considered less risky not because it is invested on bonds only. In fact MFs can also invest in company shares. It’s the accrual portion of an MF that makes it less risky, to lessen the fluctuations of the MF share price. I also don’t agree with VULs getting better returns in more than 10yr mark since there are no existing past performance data to prove this. However, MFs have been around for more than 15yrs and looking at their past 15yr performance, some are able to gain more than 500% return as seen in their share prices.

    • Mutual Funds have different types same with VUL. The risky part lies on equity funds coz they are too volatile and are mostly on shares of stocks of companies

  66. To avail the “no estate tax” in the VUL, make sure that your beneficiaries are irrevocable. And to my understanding, only the insurance coverage part will be subjected if your account values are already higher than your Face Amount, the excess is not included anymore. VUL – means Variable Unit-Linked. On the other hand, the Mutual Fund is not subject to Witholding Tax for it’s already the Corporation of the MF is the one who paid and absorbed it. MF may charges ales/exit loads and others but very minimal..usually at 3% the most..thus most part of the investment is being purchased to the shares. VULs strentgh is trully more on the protection aspect (except the single premium which is usually at 125% of the invested amt.). And Premium Charges may vary for every VUL product..thus is usually seen in the proposal or the policy itself.. Let’s all invest wisely! 🙂

    • It’s amazing when fellow Filipinos leave informative comments here too. May God bless you, Jane. thank you for sharing that.

  67. Hi Fhel, good explanation with the 3 types of investment but may i share to you the beauty of the VUL, single premium or one time VUL differs from the regular pay products which have higher cost or fees. I will be a little biased but in company like manulife investments with 500 k up have no upfront fees,no bid offer spread and the cost of insurance will be dependent on the difference between the account value and the insurance which is too little or sometimes none.The investment returns can compete with the returns of UITF and mutual funds and when the owner of the fund/s die the settlement is immediate and not subject to maximum 20% estate tax. On the other hand UITF and mutual funds will be frozen first pending the payment/settlement of the estate tax.

    • Hi Edwin. Thank you for the heads up about VUL’s advantage with estate tax. Geez 20% is a big thing. VUl scores for this in terms of fast settlement and zero Estate Tax. I should add that up there in the article 🙂

  68. thank you for the informative articles. I’m currently researching because my friend from philamlife has offered their VUL to me. However, I’m still unsure because I read that the money is shared between insurance and investing, so the gains aren’t that much. I guess my concern is that if I put all my money in investments instead of a shared vehicle like a VUL, will I earn more in the long run which would be enough to offset any amount I would get from a VUL, including if I met my untimely demise? I guess I need to get hard numbers to give me peace of mind before I actually invest. Also, I get the feeling that it’s harder to start investing in mutual funds than UITF’s because UITF’s are more readily accessible from banks. Can you kindly point me to a MF fund manager please?

    • When purchasing VUL products the most important thing for you is to make sure that your agent is giving you the proper information. Make sure he/she informs you about all the charges and not to make any false promises. I’m an adviser too so I hate it when agents misrepresents a product because it just makes it harder for everyone else. VULs that are paid regularly (You have yearly premiums) are strictly for long term. You have to continue these products religiously (at least 10 years) to make any gains from it. Keep your insurance at 20X the premium or lower to make the most out of the investment. Most agents at Philam and Sunlife I believe already have MF licenses so maybe your friend can sell you one (most agents don’t offer it because it generates low commission) In the long run VULs and UITFs earn more than MFs because MFs usually invest in bonds and securities. VULs have the highest earning potential in the long run due it being tax deferred. If you want to make the most out of VULs as an investment vehicle then you have to set it’s insurance value to the minimum so the COI is low. Tell your agent that you want to get the DB2 option since this option will allow you to drop the insurance the moment that your account value exceeds the insurance value, meaning you wont be paying the COI anymore. I hope this helped. Oh and don’t go for regular pay VULs (VULs that you pay whole life) since the premium load for those products is way too high, only get them for protection. A 5-pay VUL has the lowest premium load, ours is at 40%, 30%, 20%, 10%. Good luck in your investment future, I hope that the information I gave you helped.

      • Hi Cerberus 🙂 Thanks for the excellent tips and advice about VUL in the Philippines. I wonder if there are VUL products that are invested purely in stocks?

        • Yes, there is. Single Pay VUL is another instrument that will invest your funds like how MF/UITF work.. The advantage of it, even your funds are purely invested, your beneficiary will get 125% of your fund if something happens to you..but you need more than 100K to open an account..

        • Yes fel there is. You have options actually on what fund you wantto put your investment fund,balanced,equities. If you want stocks,go for the equity fund. That’s the beauty of vul….youcan choose where you want to put your money in,you can do fund switching and fund allocation 🙂 hope this answers your question.

          • The premium for the face amount actually depends on the age,gender,if you are smoker or non-smoker 🙂 and that can be your insurance coverage/death benefit in whatever form or cause of death(like 1million face amount).may it be natural or accident-related. Moreover,we also have what we call riders to make your coverage more comprehensive,and one of those is accidental death benefit 🙂

            Maybe what you mean in personal accident insurance is a plan that offers purely protection only like term insurance,and not vul. On that case term insurance is cheaper compared to vul,because it offers only protection,unlike vul,you have protection and savings 🙂 hope this answers your question 🙂

  69. Thank you mam for a very informative and clear presentation of UITF, VUL and Mutual Fund. I have read books of R. Kiyosaki, F. Colayco etc. and watched some videoclips on investing. It always has a common denominator, SAVE and INVEST. I love to invest in the stock market but I don’t have any formal orientation or background of it. yet I am willing to study and learn about the stock market. Do you think it is workable to engage in investing online?

    • Investing is learning too. I had to read and learn financial stuff too before I opened some investments. If you don’t want to trade directly in the stock market, there are still other ways to invest in stocks, that is thru Mutual Funds in Equity and UITF in Equity. Read our post about them in our MONEY section or MILLIONAIRE posts

  70. Hi miss Fehl,

    Glad to come across your money articles. It would really help people like me to be financially educated and take control in their finances. Hope you keep on posting articles for us to learn more. All the best…


    • Thanks Michael. Happy to see comments like yours. Yes, I will put more money articles this week and the coming days. Summer has been so busy for me so I need to make them coming now. I’m gonna put about opening UITF online. Yeah, thankfully first in the Philippines, there’s now an online UITF service. 🙂

  71. All options are good but of course you have to choose the one that suits you and your budget. Actually depending on your age, you can start getting a VUL product with a budget lower than P2500. VUL is better because of its fund value ( OR LIVING BENEFIT ) that grows overtime based on interest that is 2X or more higher than that in the bank, and of course its insurance feature, meaning if anything happens to you even right after you paid 2500 for example as you premium, your family gets the full face amount free of tax. Hence, You are safe whether you live too long or you die too young! I have a friend who is financial advisor you can ask her about it and all about financial planning at ( jen)

  72. I think VUL is better because of its insurance feature. When uncertain things happen, (which i think we have to consider that) the proceeds of the face amount of insurance will go directly to your beneficiaries plus the gain of your investments which is called the fund values. If for UITF, funds will be freezed and will not be immediately get by your family. This will first go in your estate and will be taxable.

  73. \***—UITF – you may need to declare taxes from capital gains—-***/

    UITF is net of taxes as a definitions of Net Assets Value per Units. I hope this can help

  74. very informative and it educates to beginners to who wants to avail these investment. Hope more topics about investment here! Thanks

  75. Very informative article. I didn’t know that gains from UITF have capital gains. I’ll ask my bank for more details about this. I haven’t tried investing in Mutual Funds, between UITF and VUL I prefer investing in UITF due to convenience and lesser fees. My first investment vehicle was a VUL and I noticed that a huge chunk of my money was placed on insurance. I switched to UITF and focused more on investing. I still have to try investing in mutual funds to diversify my portfolio. The only way for me to know which is better of the three is to try all three methods of investing.
    Money and Opportunity

    • A huge chunk of your money isn’t actually going to insurance costs in a VUL. I’m a financial adviser for Manulife so I’ll tell you how it all works. I’m actually having a problem with this since VUL is my core product but a lot of agents are misrepresenting it so I have to keep explaining it to my clients again and again. Most, if not all, VUL products have what we call a “premium load” for the first 4-5 years, which for our company is set at 60%, 40%, 20%, 20% for a 10 year investment plan. That premium load is not going to the insurance. The premium load covers your agent’s “service fee”/commission plus other admin fees. The COI of a VUL is pretty much just the same cost as term insurance (Php 2,000/year at 30 years old for 1M coverage) which increases as time goes by. I have investments in UITFs, MFs, and in VULs now by comparison MFs are by far the least risky among the investment but it also gains the least overall. UITFs and VULs have similar ROIs. Now it all depends on your time horizon of investment. For short-mid term investments (less than 15 years) UITFs and MFs are better options since they don’t have the premium load at the start. Now for long terms investments VUL are better than the other 2 simply because it is tax deferred. Imagine when your investment reaches around 5M at 10% ROI. The VUL will earn Php 500,000 while a UITF or MF will generate Php 400,000 due to taxes. Which means as time goes on UITFs and MFs actually slow down because of how big the taxes become while VULs aren’t hampered by that. It’s best to use different investment vehicles for different goals. There are VULs that don’t have premium loads though, mostly the single pay ones but they do require a high capital (500k minimum) Single pay VULs have very low insurance coverage (125% of premium). These products when regularly topped up leaves every other common investments in the dust.

    • In my own opinion, VUL is much better than the other two.
      1. In VUL, a certain percentage of your initial deposit is being placed in insurance coverage for a certain period of time say 1st 5years because in case something unfortunate happens to you, you can be sure that your family gets a lumpsum amount say Php400,000.00 as minimum death benefit even if you have just started building your future wealth. After this period anyway, 96% of your premiums will now be applied to investment in succeeding years(the remaining 4% will be for the charges such as asset management charge, etc. same with MF and UTIF). We have a client who just opened one VUL account. She was just 31 years old have 2 kids She just made an initial premium of 1,500 for his 1st month. Unfortunately, the following month, she suddenly died because of anneurism. It was tragic for their family but because she had a VUL plan before it happened, her family received Php400,000
      2. In VUL, you have the option to add up some benefits such as
      a. Waiver of Permium where your monthly future savings up to a certain age normally up to age
      60 shall be waived if you suddenly had an accident and you became permanently disabled
      b. Daily hospital allowance when you get confined in a hospital
      c. Medical fund when you are diagnosed with major critical illnesses,
      ..and many more.

      Always remember that we should not only focus in building your retirement, building wealth or whatever you call it but instead, we should also consider the “What ifs” like for example, you just invested an initial 100k in a mutual fund, but what if suddenly you were diagnosed of a major critical illness? Health card, if you have one in your company normally covers confinement. Tendency are you will pull out you recently invested money. But the question is, will your 100k + interest be enough to sustain your expensive healthcare? or worse you were suddenly taken out of the picture from your family, will it be sufficient enough to at least sustain your family’s need for the following years..?

      Its good that we invest our hard-earned money in something that can offer higher rate of return compared to a regular savings account. But doing this while being sure that if something happens you or your family will get a fund without pulling out your investment is always the best.

        • Hi ma’am sorry for late reply. I am actually from AXA Philippines, joint venture of Metrobank and AXA Group one of the world’s largest financial protection and wealth management companies with 102 million customers in 57 countries. Recently. AXA is ranked as 16th in Profitable and Reliable Companies world wide( AXA is actually recognized as TOP GLOBAL INSURANCE BRAND five years in a row!( If you want, I can send you a computation of our own. Just text me you First Name, Middle Name, Surname name, birthday and your email acct where I can send it

        • Hi fel,

          I was reading your blog recently and i learned so much from it knowing the different investment vehicles i could choose from. Just in time since i’m planning to invest in MF and UITF very soon and i’m educating myself for me to know how it works and its differences,advantages and disadvantages.. thank you for providing me this helped me a lot 🙂

          Anyway,u mentioned that you want to get a VUL in sunlife. I’m from sunlife, and it’s a pleasure to assist you in getting one. You can give me the details depending on your goal and feel free to contact me thru this no: 🙂

          Thank you and God bless.. 🙂

      • I agree with henry. I also agree that our government retirement benefits suck!! Our government will only give us peanuts when we retire compare to if we invest wisely. Had i known about VULs before i would have invested on it rather than a regular life insurance. With VULs you are hitting two birds (sometimes even more) with one stone.
        You get a life insurance and your money is invested at the same time!
        You can even get coverage for critical illness and disability.

  76. Thank you for a very informative blog entry. I enjoyed reading it.

    I only have two concerns.

    1. VUL is not expensive, starting of UITF and MF is P10,000 while VUL can be as low as P2,500 because that is the plan I picked for the retirement plan of our employees.

    2. SSS, GSIS and Pagibig nowadays cannot be considered protection. Let’s face it. We cannot solely rely on the government during the situations that we need them the most. My Mom worked for Landbank for 29 years and now that she is retiring, her pension is enough only to pay for our electricity bill. Can you imagine that? Our family is just lucky that we have our own company so we do not have to rely on her pension but just imagine all other Filipinos who are depending on this, what will happen to them in the future?

    Bottomline, yes the government can give you a little sum of money when you need it but it’s never enough so we have to be responsible for our own financial freedom, start early and be ready.

    That’s all. Have a nice day! 🙂

    • I totally agree with this , what private employees will have in SSS or Pag-ibig is totally insufficient when they retire. It’s good you got your employees retirement through VUL but you can also consider a comprehensive group plan which guarantees annual interest , at the same time do valuations of the unfunded retirement liability you already so that you are assured you will be compliant to the Retirement Act Law. 🙂

  77. Thanks for this info maam. Is starting to invest in UITF a good start? I mean wala din akong ganong kalaking pera, I just want to gamble my remaining money. Is it safe to gamble it sa UITF? Also, ok ba yung sa BPI o pare-pareho lang sila nung ibang banks na nag ooffer ng UITF?

    Thank you very much and more power.

    • Hello Dave, If you are interested in investing in equities I suggest you read more about investment strategies which will lessen the risk of you losing your investment. You can either try Cost Averaging or Value Averaging. Both of these strategies involve a long investment horizon. As for funding your investment the author has already mentioned that their are a few UITF, Mutual Funds or VUL that offer a regular monthly investment plan. If you already decided on investing in UITF, try searching BDO and BPI for their regular monthly investment programs.

  78. Wow, so the trick is to decide what tier or area the person belongs in. So if a person works for a company or for themselves or are a business entity, they will know. And they can decide which to go for.

    It is good to have an investment – especially one that is safe and builds towards somewhere in the future where it has a benefit attached. People are wary of where to put their hard earned cash nowadays. I’m glad you explained this so easy and so well, Fehl. We all have to make our money work smarter for us and so we need to manage it better. Your blog shows the path towards more money security for our futures.

    Thank you for another great post.

    Cathy 🙂

    • Yes, it always depends upon the investor’s status, capacity, and goal. Some people just signed up for any tempting investment offer without really contemplating and studying the investment’s benefits and background plus their capacity to maintain it. Instead of earnings and protection, they get headaches and depression. I’m happy you like this post, Cathy. You are right we have to make our money work smarter for us. I’m glad to share what I learn about investment and wealth building here at Philpad.

      Cheers! Thank you and God bless you always, Cathy. 🙂

      • Hi Ms. Marifel,

        Can I ask you an advice recently I sign a investment from BDO life and i just found out that this a a VUL. Also the agent just focus on return of investment and not about the premiums deductions. This is my first time to invest because I want to save it for my daughters future in college. Do you think I made the right decision? I”m thinking if I will just withdraw my investment since it has 15 days cooling period and put it on UITF. Hope for your response. Thank you.


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