21/09/2023
๐๐ก๐ฒ ๐ข๐ฌ ๐๐๐ ๐๐ง ๐๐ฆ๐๐ณ๐ข๐ง๐ ๐๐ข๐ง๐๐ง๐๐ข๐๐ฅ ๐ญ๐จ๐จ๐ฅ ๐๐จ๐ซ ๐ญ๐ก๐จ๐ฌ๐ ๐ฐ๐ก๐จ ๐ฐ๐๐ง๐ญ ๐ญ๐จ ๐ฃ๐ฎ๐ฆ๐ฉ๐ฌ๐ญ๐๐ซ๐ญ ๐ญ๐ก๐๐ข๐ซ ๐๐ข๐ง๐๐ง๐๐ข๐๐ฅ ๐๐ซ๐๐๐๐จ๐ฆ ๐ฃ๐จ๐ฎ๐ซ๐ง๐๐ฒ?
First letโs define what VUL is.
VUL (Variable Unit Linked) is an INSURANCE with Investment component.
SIMPLY PUT :
While you are paying for you insurance coverages that you can use in case of Death, Sickness, Accident, Disability etc. , A โportionโ of your โpremium /paymentโ is being invested in your chosen fund.
Here is an example of a VUL plan. This is a 5 year to pay plan.
My client is paying P240k in a year and she has now completed her 2nd year.
Yes, she is now past the โContestability periodโ.
On her policy, she is covered with the following:
- 3 Million pesos in case of Death
- 1 Million pesos in case of Critical Illness
- 1 Million pesos in case of Permanent Disability
- Permanent Disability Waiver
+ additional benefit in case of death/disability due to accident ; daily hospital allowance ; accidental medical reimbursement
And the best part is โฆโฆ. She now has a withdrawable fund value of P460K which serves as her savings for future use .
Take note, this is a 5-yr plan. Imagine how much more the client would be saving for the next 3 years.
VUL gives you an opportunity to increase the โvalueโ of your money.
How?
Had the client decided to just keep her money in the bank , then she got diagnosed with critical illness :
**she only has whatever amount she kept in the bank that she could use. What if she would be needing 1M for her hospitalization? Where would she get the rest?
But since she put it into a VUL, she now has :
1,000,000 pesos Critical illness benefit she could claim PLUS that 460k she has on her Investment Fund.
See the difference? Thatโs how you amplify the value of your money.
Thereโs nothing wrong with having a Bank Savings account. We all should have one. But you also have to create a โsure planโ in case something goes south ๐งก