It’s been more than 3 years since I started this blog Financial Planning Phils. And over the years, readers come and go with their questions on how does this thing works, what is the minimum amount, what are the mode of payments etc. And since one reader asked in particular if I won’t be making a post on Frequently Asked Questions on VUL, I felt obliged.
Let’s have a review on what is a VUL Insurance by watching this video from Pesos and Sense.
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So here it is, Frequently Asked Questions on Sun Life VUL (Variable Unit Linked) Insurance.
VUL Features
- Up to what age is the insurance coverage? What happens after that?
Insurance coverage is up to age 88. After 88, you will no longer be insured so best for you to enjoy the fund value as your living benefit.
- Is there a proof of membership provided to account holders?
Yes, you will get a policy contract of your plan.
- Do you send out a statement of account or member’s ID?
Yes, you will receive annual statement of accounts and official receipts every time you make payments. You will also have a policy number.
- I understand that this insurance account is coupled with Mutual Funds investment -do I get to choose which fund investment (equity, balanced and/or bond fund)?
Yes, you may choose whether Bond, Balanced or Equity Fund or combination say 10% for Bonds, 50% Equity and 40% Balanced fund.
- Can I make fund switches say from Equity to Balanced fund or Bonds?
Yes, you may do fund switching from now and then. We are given 4 FREE fund switching per year.
- Say at year 8, I lost my job and no longer can pay, will my policy lapse?
If you can no longer pay on year 8, the payment will then be deducted on the fund value at that time so that it won’t lapse.
VUL Payments
- At the moment, I can only afford semi-annual contribution. In the future, can I change the arrangement to either semi-annually or annually?
Yes you may do that. Say you start as semi-annual then you receive your bonus, you may opt to pay the full annual amount if you want. Then the next year, you can still use semi-annual and do the same thing again.
- Any penalties for missed contributions?
There are no penalties as long as the fund value doesn’t reach 0. In case of missed contributions, you may still make up for it. It’s just that it will affect the projected fund value.
- If I sign up for P3k monthly, will this be the same amount of monthly contribution for the next ten years?
Yes, that will be your payment in the next 10 years. That’s why it’s always an advantage getting it at a young age. The older you get, the more expensive the payment will be.
- Since you will be assisting me with my application, will I pay you any financial advisor’s fee?
Nope, Sun Life is the one paying us. It’s actually our work to assist people in achieving financial freedom.
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