Naniniwala ako na walang perfect investment. Ito ay depende sa solusyon na pwede maibigay ng isang financial vehicle sa isang tao para makamit ang mga Financial goals sa buhay. Kaya hindi ko masasabi na ang isang strategy na ituturo ng isang Financial Planner ay magiging angkop na sa lahat ng tao. Bakit ganito ang nangyayari? Kasi lahat tayo ay may iba-ibang financial goals, time horizon, risk appetite, dependents, health status, katayuang pampinansyal at iba pang konsiderasyon.
May mga nagsasabi na the best strategy ay ang Buy Term Insurance and Invest the Difference (BTID) at ang iba naman ay ang Financial Product na Variable Unit Linked(VUL) na kombinasyon na ng Life Insurance at Investment. Ano ba ang mas maganda sa dalawang ito? Ang masasabi ko ay pareho silang may advantages and disadvantages. Maaring ang BTID ay para sayo o kaya naman ay ang VUL ay hindi sayo. Maaring naman na hindi para sayo ang BTID at VUL naman ang angkop para sa iyo o di kaya ay parehong pwede sa iyo ang BTID at VUL.
Kumuha ako ng mga comments mula sa FB Page ng Pinoy Insurance Talk https://www.facebook.com/groups/pinoyinsurancetalk/?ref=group_header tungkol sa isang blog na nag-aadvocate ng BTID. Dito ay makikita sa mga comments na may advantages din ang VUL kaya hindi marapat sabihin na pinamimigay mo lang ang pera mo pag kumuha ka ng VUL. Ito ay malisyosong statement at hindi ito maganda sabihin.
Narito ang mga comments ng nagsasabi na may advantages ang VUL kumpara sa BTID:
Still it varies. Kung ung fund selection that the FA chose for her client that will be the result of her fund value. Also depende sa age din ung Fund Value. Still I would highly recommend for millenials VUL ksi ung time where ung money nila is invested its by the power of compounding interest it will be much bigger..
VUL was made due to necessity. Para mas may option ang clients. I had a client na gusto ng forced savings wala ng inaalala pang iba. Kaya nga daw andito tayo para dyan. Kung bibigyan pa natin ng trabaho si client they might as well save it sa bank. Masyado ng fast paced ang buhay ngaun. Nasa present state utak ng client. Better give them what they want so that they can focus sa work or kung anu man ang pinagkakabalahan nila.
If u have ample time monitoring your investments then buy kang term invest d diff. Pero people nowadays are more preoccuppied with a lot of things dat are far more meaningful THAN MONEY, dats why pingakakatiwala nila ito sa VUL. So why go pushy over VULs having lesser funds than getting term insurance? Yes, you are only comparing them sir but this article can’t get you away from last video na NAPAKA ONE SIDED.
Para sakin, kung vul or term, vul padin ako, na weigh ko na yung pros and cons, ang mahal ng insurance ng stand alone crit illness, worth 500k sa mother ko age 58, 19k na, take note, crit illness lang yan na stand alone,. Tas may re evaluation pa afterend of contract. Dagdag mo pa yung natural death,. Sinasabi lang ng iba na mag papa insure padin sila kahit matanda na, how sure are they? Kung ang laki na ng cost? Mayayaman nalang siguro ang mag papa insure for estate planning,. Siguro ang mali lang ng ibang FA, dapat hindi minamaximize yung premium ng vul, sapat na yung premium where in ma cover yung major needs like, natural death, ADD, LCB and disability., ganun yun policy ko dahil naniniwalan naman talaga ako na kung pure investment ang goal, go for other investment vehicle other than vul.. ang okay pa sa vul is kung ayaw ko na mag monthly sa plan ko, basta imaintain ko yung fund value wherein hndi sya mag teterminate edi insured padin ako,. Gawin ko yun gang pag tanda, mas mura padin compared sa term,. Insured pa gang age 88 or 100..
yung gains ng VUL pwedeng ma tax shield sa estate tax pag irrev yung beneficiaries.
unlike pag naka 100% MF or stocks, subject pa din for estate tax in case of death.
There is a sweet spot for VUL and it’s not at age 65.
Don’t you ever wonder why he did not show how much term insurance premium you have pay when you reach 70, 75, 80? Why only show it till 65?
Why only 1 Million? 100K a year lang ba ang income mo for you to be insured ng 1 million? If that’s the case, all BTID practioners are either under insured or not even insured as they Invest. 1 Million Coverage is not enough for a 30 year old breadwinner.
Please don’t get me wrong. I love term insurance. I recommend term as a Coverage booster Or a temporary coverage. The beauty of term insurance is it’s a straight bet. “PATAY, BIGAY. BUHAY, T.Y.” Id rather put my 20 pesos a day sa term insurance keysa sa LOTTO
But for these BTID advocates to say VUL is a bad product altogether is BS. Can you even sell BTID strategy without mentioning VUL? No you can’t. You cannot sell BTID without mentioning VUL.
Lastly, sino dito ang nag BTID na for 30 years hinde nagwithdraw? No one. You know why? No one is stopping you from doing so.There is no consequence in withdrawing funds in as early as 2 years. So what makes you think that you can accumulate so much and beat VUL straight up? VUL is designed for long term. Charges are there for a reason. To discourage you from withdrawing too soon.
He didn’t also discuss the risk of not able to get a term insurance when the client has been diagnosed with a critical Illness years after having the same Policy.
I think he’s just focusing on the side of the earnings of the Investment component of the 2 options.
He forgot one crucial thing, the insurability of the client.
He didn’t discuss the risk of not able to get a term insurance when the client has been diagnosed with a critical Illness years after having the same Policy.
VUL is designed for the Long term. As an FA, I disclose the risk of getting a VUL, like high premium and the risk of paying premiums beyond the expected payment timeline.
Although I already have term, insurability made me decide to get VUL too.
mas mura nmn talaga ang term sa initial years. ang problema mo lng jan is kung si client lived too long. Pag nag age ka ng 50 above, baka puro rejected kana sa insurance company or mahal na nrin ang premiums. Kung cnbi ni Vince na maganda ng term sa early stages ng buhay, tama xa. Pero kung all through-out ng buhay, hnd cguro. Wala ng sense na kumuha kapa ng term, baka hnd rin maapproved.tsaka hnd po zero yung 1st year sa vul. Mga single pay na ang mas iaadvise ko xmpre assuming na meron silang pang single pay… Again may mga pros and cons yan. Jsut my 2 cents.!
If kaya mo po sir na mag invest c client regularly with that amount without him giving any excuses not to to invest eh d ok po yan. But our VULs are like forced savings to ensure that our clients will be protected and with investments at that certain time. If kaya mo po tutukan isa isa ang clients mo to do that then mas ok po
Dapat wala yung NPV na comparison nya kasi yung sa VUL may investment portion while yung TERM premium wala . Bakit kailangan yun? Sana yung NPV ng charges ng VUL at NPV ng charges ng TERM. Based on the products presented lumalabas na mas maganda ang BTID. Sana mas maganda kung up to age 75 illustration para makita natin ang difference
Usually naman po sir, VUL Kung titingnan ang fund value nya for retirement purpose..
ung iba tinatawag na investment dahil may balance fund, equity fund.. and if you aware the Filipinos mindset towards financial literacy, they still fear and very conservative. That is why they designed para ang takot mag invest, VUL is the advantage..they already know na.. and when they already know how to invest, they start mutual fund and stockmarket, at dun pa rin papasok si VUL..
You can have term insurance for protection only and you have a VUL for estate tax..
He used a VUL plan that is 0 [zero] value at year 1. Insular Life multiple pay VUL plans have certain % of fund allocated to investment at start of plan, hence NOT ZERO value at year 1.
Another thing, perhaps the comparison should be extended much longer, say until age 76 (average life expectancy of Filipinos). We also know that TERM insurance can be renewed until age 70, moreover the increase of premium is much higher every year from age 65 to 70. Let’s see if the net btid roi beat net vul roi
A question to be answered by prospective investor: Will I live until age 65 only?
Hi, isa sa pinakamalaking advantage ng VUL is one time medical exam lang sya. If kinuha mo sya nang bata ka pa at walang sakit, that is the perfect product. Kung kukuha ka ng Term, make sure hindi ka magkakasakit dahil taon taon kang imemedical check at malaki ang posibilidad na mareject ka if ever magkasakit ka na. Financial Analysis is the key. No perfect product na magsusuit sa lahat. VUL has its own advantage, BTID either.
And meron pa na-overlook. Hanggang kailan insurable si client? Sa VUL, the client is insured up to age 100. Sa term, it is only renewable as long as the client is in good health.
As one of the PIT admins, I can say that we advocate financial awareness, especially when it comes to insurance. This discussions are encouraged.
I would just like to give a suggestion to the Author: if you are going to compare financial products (not limited to insurance), please give a complete picture of the comparison (e.g. underlying asset, plan mechanics, product costing, etc.) as this is the proper way to COMPARE FINANCIAL PRODUCTS OBJECTIVELY. You cannot compare financial products in a given situation because at the end of the day, FINANCIAL PRODUCTS ARE SERVICES that needs to match different consumers.
Isa pa pong disadvantage ay pataas ng pataas ang premium ng term insurance habang nadadagdagan ang edad ng client. At pag dumating yung time na may sakit na siya, hindi na siya makakapag renew. Kaya kahit anong mission over commission ang i-apply ni agent, wala din siya magagawa. And for your information, ang commission ng agent sa whole life plan ay sa first few years lang and receding pa ito. After that, purely mission na lang talaga, wala na ang commission. Sa term, may commission si agent as long as nagre-renew si client.
it opens up a lot of issues: firstly, how much will the term insurance when one hits 60? will you still be insureable? VUL does not have that issue. second, how good are you in investing the difference? how much time have you spent analyzing investment vehicles? and do you have the time to actively manage the investments that you make? sa stock market dito sa pinas, majority do not survive the first year. when you say ‘investing the difference’, baka i-invest mo rin lang yan sa mutual funds or uitf, which are run by investment managers, who do still charge you.
Slain by the “BTID Killer”…..
May this could help.. Nakita ko lang..
Hindi natin na masasabi ngayon na ang Term Insurance ay superior sa VUL dahil ito ay may advantages at disadvantages. Ganun din naman na hindi tama na sabihin na mas sulit ang BTID kumpara sa VUL. Dito ay dapat maintindihan ng kukuha ng Financial Plan kung ano ba ang mas makakatulong sa kanya para ma-achieve nya ang kanyang financial goals sa buhay. Dito ay makakapili ang bibili kung ano ang mas angkop para sa kanya.
Ngayon, ang aking strategy ay Buy VUL at Invest Directly sa Stock Market(MF at Stock Broker) or BVID. Ang aking pundasyon ay may coverage ako na huhulugan sa loob ng sampung taon na pwede ko lagyan ng Riders at mag-self sustain na ito na may life insurance ako hanggang edad na 100 kung buhay pa ako at kasabay nito ay lumalago din ang pera ko dahil ilalagay ito ng VUL sa Stock Market tapos may direct investment pa ako na kikita sa Stocks ko at Mutual Funds ko. Maaring ang aking strategy ay angkop sa iyo o maaring hindi. Kaya maganda na alamin kung ano ang angkop na Financial Plans at strategy ang para sa iyo.
Archie M. Yuki
Financial Planner, Certified Investment Consultant and Insurance Specialist
4th floor Karina Bldg., No. 33 Shaw Blvd. Pasig City
Tel No. 571-3274
Mobile Number. 0917-5769607, 0923-4941362
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