VUL- Your Favorite Investment Bundle (Part 3)
- Miss Investor
- Nov 21, 2016
- 3 min read
So many good stuff here huh?
Wait, there’s more!
I’ve mentioned in the Part 2 of this blog that VUL’s are flexible. How? They have what they call, Top Ups.
Top Ups are pretty cool too because these are additional investments you can put in to your plan. Well let’s just say, after a thorough financial analysis and planning with your Financial Adviser, you’ve realized you need to invest around Php 30,000 per year for 10 years, that’s what you call your Regular Investment.
But what if at the end of the year, you’ve received your 13th month pay and decided that instead of spending it like a one-day millionaire, why not spend it on paper assets which can potentially make you a millionaire? So you call your Financial Planner and tell her that you want to do Top ups for additional investment instead of getting another plan. This is actually an option for you. But in most cases, it’s a yearly thing, depending on the Investor’s preference. Some companies require a yearly top up especially if your Health Score is not that good.
But what if after investing for so long, and you’ve seen the growth of your money and you want to take a piece of the earnings so you can do shopping spree, but still wanting to continue with the plan? So what do you do? Partial Withdrawals. Yup, just like a Savings Account you can actually take some money and keep the rest for reinvesting. All you need to do is talk to your Financial planner and prepare a few requirements. Now, if you’re planning to do partial withdrawal within 10 years, some companies charge a withdrawal fee. That’s because this type of investment is for the long haul. But if you don’t want to be charged with a withdrawal fee, you can check that with the company you’re investing in because the holding period varies for different companies.
So let’s say you’ve been a loyal client and for the past 10-20 years you’ve been patient in growing your investment collection, and you haven’t done any withdrawals because you’re reserving this for your fabulous retirement, then the insurance company gives you what they call a Loyalty Bonus. It’s basically a FREE investment they give as a gift. They buy more shares for you without you having to pay for it. This takes quite a while. But who doesn’t like free???
Want some more awesomeness? Check out this graph on how much your money can potentially grow!
This is an illustration of how your money can grow over the years if you're regularly investing.
The Blue line represents the growth of your money at 10% rate and the Orange line at 8%. This means that for 10 years you've been investing Php 30,000 yearly which gives you a total of Php 300,000 investment. And over the long run, your money keeps on compounding even if you only invested for 10 years. However THIS. IS. NOT. A. GUARANTEE. FOR. EVERYONE. because of Stock Market fluctuations. However, your money is being handled by expert Fund Managers who are exposed to risks and volatility of the industry. Some Insurance Companies are very competitive that they perform at 12-16% average yearly (depending on your chosen funds). So imagine what kind of growth your money could have! But of course we need to also learn the language of money ourselves and that is precisely the reason why Miss Investor is created in the first place, because you girl deserves to learn the money game!
This is so Fab right? You know what to do!!! #ShopForPaperAssets
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Credits to FWD Life Insurance Corporation for the Illustration Sample
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
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