Is it worth investing in VUL?
High Investment Returns
VUL has the same benefits as mutual funds. They help you yield higher returns than other types of life insurances and regular savings accounts and time deposits in banks. The premium payments are invested in a variety of assets like stocks, bonds, and money market instruments.
- Philippine Axa Life Corporation. ...
- The Insular Life Assurance Company Ltd. ...
- BPI-Philam Life Assurance Corporation. ...
- Sun Life Grepa Financial, Inc. ...
- United Coconut Planters Life Assurance Corporation. ...
- Manulife China Bank Life Assurance Corporation.
VUL isn't a good investment for most people. It comes with fees and complexity at a high price that isn't worth the investment returns. Most people will save more by using a traditional investment account and buying term life insurance.
You should choose it if given the choice. However, if you already have a VUL policy, then you're still better off than most Filipinos who don't have insurance nor investments at all. So no need to feel bad. Just continue paying your VUL premiums.
VUL has become the most popular insurance plan in the past decade. Since the policy is linked to different asset classes such as stocks and bonds, VUL presents earning potential that may not be offered in a traditional policy. With a VUL plan, a policyholder has the option of putting in more than the regular premium.
You may partially or fully withdraw the policy's fund value, which is the investment portion of a VUL policy. Tax-free and interest-free, a withdrawal from a VUL investment can be used to pay for emergencies, your child's college tuition, medical bills, retirement, or any financial need.
WHAT IS VUL (Variable Unit-Linked)? It is an investment and life insurance product in one. In the Philippines, it is Pru Life UK who has pioneered the VUL.
This is a study based on the 10 years since VUL started from 2004-2014. Liquidity. Unlike other insurance plans and policies, a VUL policyholder can withdraw the funds that are on top of the actual amount of the policy.
Bottom line: if you want the protection of life insurance, go for a VUL. If you want to participate in the growth of the Philippine economy but don't have the know-how to go into stocks, choose a mutual fund or a UITF. If you have the time to learn, money to invest, and aggressiveness to match, stocks may be for you.
The greatest risk in a variable life insurance policy is the risk of the investments. The insurance company doesn't guarantee any rate of return and doesn't offer protection for investment losses. Like any investment, the cash value component of a variable life insurance policy comes with risk.
Which is better VUL or Btid?
VUL: What's the Difference? BTID believes in separating your life insurance from your investments. On the other hand, with VUL (Variable Unit Linked or Variable Universal Life), your investment and insurance are in just one instrument. All you have to do is pay the quoted premium.
If you are new in investing, you'll probably encounter these types of investment instruments: UITF or Unit Investment Trust Fund, MF or Mutual Funds, and VUL or Variable Universal Life Insurance. They are what we call part of the “pooled funds” that are invested together in the stock market.
Single Pay VUL is a financial product that combines life insurance and investments. The minimum investment amount is P100,000 and it provides a 125% insurance of the invested amount (i.e. P125,000).
Variable universal life (VUL) is a type of permanent life insurance policy with a built-in savings component that allows for the investment of the cash value. Like standard universal life insurance, the premium is flexible.
On the other hand, gains realized by the policyholder from redemption of units of participation in the VUL are taxable to the policyholder/investor or as ordinary income subject to regular personal income tax as envisaged under RMC No. 30-08 as amended by RMC Nos. 59-08 and 49-10.
Variable life insurance is a permanent life insurance policy with an investment component. The policy has a cash-value account, which is invested in a number of sub-accounts available in the policy.
