VUL-Your Favorite Investment Bundle (Part 2)
- Miss Investor
- Nov 21, 2016
- 5 min read
Welcome to Part 2 Ladies!
Now as I’ve said in my previous blog (click here if you haven’t read it) that there are lots of things that we could talk about this particular paper asset primarily because it has a lot of features and we’re going to tackle that one by one.
We’ve mentioned last time that VUL is an Investment Bundle. Now depending on your option and financial capabilities, this type of paper asset is very flexible. Because you can customize it based on your needs and budget.
It’s like going to your favorite Skin Care or Cosmetic Store, there are lots of options available there depending on your skin type.
Now it’s very important that the type of investment you’re getting is the one that tailor fits you. You can’t get a Luminous type of Foundation if you’re oily skin. Right? Or else your face will look like a frying pan ready to fry some eggs and bacon!
That’s the same thing with investment planning. You can’t get a long term investment if your goals are for short term. And that’s why it is also important to hire a good Financial Planner for you. Make sure that they ask you first about what your financial goals are because VUL’s are more of a long term type of investment (10 years or more) and their job is to keep you in track with your long term goals too. You wouldn’t want to get an investment just for the sake of having it. It has to have A CLEAR PURPOSE on what it's for – because that is the only thing that would motivate you when your demon is actually provoking you to buy shits you don’t need. (you know what I’m saying)
So going back, one of the interesting parts of VUL is that you can add what they call RIDERS. Riders are an optional benefit that you can attach with your Investment Plan
Here’s some examples;
1. Critical Illness Rider – I’ve mentioned this in the previous blog and most Filipinos really go for this one obviously because sickness like Cancer, Stroke and Heart Attack are very common nowadays. Why is this awesome? The company provides you a lump sum of money just in case your doctor tells you the bad news.
Now depending on which company you decided to get this from, normally the minimum lump sum they give is Php 250,000. Not bad! Can you just imagine what kind of relief that would be? Seriously, even the company you’re working for won’t give you this much. Of course you can raise this higher depending on how much you’re willing to pay and how healthy you are because you can’t get this if you’re a suki of the ICU! Make sure that this is included in your plan. A MUST-HAVE!
2. Accidental Death Benefit – This feature doubles the amount that your family or your beneficiaries will get just in case the cause of your death is accident.
For Example:
Princess Diana’s face amount (this is the amount your family will receive upon death) is equal to Php 1,000,000 and she had a car accident and she died on the spot, her two sons and husband will receive a total of Php 2,000,000. And what could be more fulfilling than that? Being able to still provide for your family even after you’re gone.
3. Waiver of Premium –This one is actually cool too because it saves your ass from paying your premiums in case of disability or even sickness but of course it has terms and conditions too. But the good thing is, you don’t have to worry about paying for your plan anymore because the insurance company will take care of it and you can just go focus on getting better. (better discuss the terms and conditions with your trusted Financial Planner *wink)
So those are the major ones. There are actually more features you can attach depending on the company and of course, your budget.
Now a VUL is either a Regular Pay or a Single Pay. What does that mean?
Regular Pay means that you are investing on a fixed schedule. Now since this is for long term goals, some companies offer a 15 year, 10 year, 5 year plans. For example if you chose the 10 year plan it means that you have to pay for your premium for 10 years . After 10 years, if your policy is still in-force, you are still covered and your investment is on the go and keeps on appreciating over time. If your budget is tight, we highly recommend that you go for the Regular pay because it’s cheaper to begin with. Some companies offer this atPhp 1500 per month minimum. You also have the option to choose whether you want to pay monthly, quarterly, semi-annual or yearly depending on your style. The good thing about Regular Pay is that it disciplines you because you are saving and investing on a systematic, consistent basis. So wala kang kawala girl!
Single pay is a one-time investment plan. Now, if your intentions are more of the investment and less of the insurance, then this is the plan to-go! This is actually good for those who already have a good lump sum of money and who are actually finding a better growth rate than the bank because the minimum investment for this is Php 150,000 for most companies. If you already got the money and you’ve nowhere else to put it into, might as well get Single Pay VUL because this is so much better than Time Deposits! Seriously! Plus, you’re covered with insurance. So whatever happens to you, your family will surely get your money. Unlike if you store it in the bank and something happened, your family can’t simply get the Php 1,000,000 without having to pass by a hole of a needle because they’re going to freeze all your freaking money in there! With Single Pay VUL, rest assured your money goes to your family HASSLE-FREE.
Want to learn more of this super awesome investment? Click here
More Articles?? Check it out here
Like this Post? Share it on Facebook! (Click the FB Button below!)
Don't Forget to Like and Follow Her on Facebook Miss Investor and Instagram missinvestor
Disclaimer: The author of this article is not connected or affiliated with any investment companies and or Financial institutions that offers the investment stated above. All information shared in this blog is based on her research also indicated from the bank's website and her knowledge from taking training and seminars in the financial industry.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior permission. Miss Investor 2016
Comments