Latest Update: January 8, 2022
Sun Maxilink Prime is a VUL plan from Sun Life, payable for at least ten (10) years. It has the combined benefits of life insurance protection and an investment component that helps your money grow over time. Making it the best-selling VUL plan of Sun Life.
You might be wondering why the VUL plans are the popular choice of many regarding life insurance.
So here’s a simple explanation of why and how VUL works and how it could potentially answer your financial needs.
Table of Contents
The Stoplight Mechanism: Start, Stop, and Wait
As a financial advisor, meeting someone who does not know about investing is common. But the worst part is meeting an existing VUL policyholder who doesn’t know how it works.
Simply a heartbreaking moment for every financial advisor. So please don’t get any plan unless you understand it well.
That’s why I devised a simple yet effective way of explaining it to my clients, and I call it the“stoplight mechanism.”
A VUL policy composes of 3 easy-to-follow steps anyone can remember when securing their future. Parang stoplight lang kasi yan, kailangan mo lang mag-start, stop, at wait. Madali lang ‘di ba?
STEP 1: START as Early as Possible
As you know, VUL is a combination of life insurance and investment. The cost of life insurance is highly driven by age, making it expensive as you get older.
If you get a VUL plan today, you can save more money than getting it in the future.
The image above is an example of three guys who purchased a VUL plan like Sun Maxilink Prime at different ages. They have the same insurance coverage.
You will notice that the premium increases with age, and the difference increases as they get older.
The premium for a 25 yr old male is only Php 25,310.50 per year or just Php 2,109.21 per month. Ang mura lang ‘di ba?
You saved Php 4,951.5 compared to a 35 yr old male and a whopping Php 21,256 per year compared to someone who gets it at a later age of 45.
Sun Maxilink Prime is a ten (10) years to pay VUL plan from Sun Life. So the discount you get after ten (10) years is Php 49,515 and Php 212,560, respectively. Tama, mas malaki ang matitipid kung kukuha ng mas maaga.
There are three (3) factors for investing: time, money, and interest. You need at least one of them to make your investments grow.
If your goal is to retire at age 65, then a 25-year-old guy has 40 years from retirement, 30 years for the 35-year-old, and 20 years away if he’s already 45-year-old.
Can you guess who has the most retirement fund?
Yes, it’s the 25 years old guy because he has more time to let his money compound.
Teka, Ton ano ba yung compounding?
Compound interest is the interest calculated on the initial principal and the accumulated interest of previous periods of a deposit.
STEP 2: STOP After Completing the Paying Period
After the paying period, you will have an option to stop paying the premiums, but if you want to speed up the accumulation of funds, then you can add more money from time to time.
If your policy is Sun Maxilink Prime, you can stop paying it after ten (10) years.
Because of the manageable payment scheme, it also gives a sense of accomplishment to the policyholder once done.
Imagine the feeling you get when your kids (or future kids or siblings) finish schooling. It gives you motivation and confidence that what you’re doing is right.
STEP 3: WAIT Until You Reached Your Goal
This part is the most confusing for my clients and other existing policyholders.
Most of them thought that after the paying period, assumes that they pull out their money with hefty returns, but that’s wrong.
Investing is like growing a tree. It grows by adding water (premiums), fertilizer (high-interest financial instrument), and time.
Yes, it needs time, and it’s the most important among the rest.
You won’t get a tree by planting a seed and leaving it overnight. The same goes for your investments. You can’t expect them to double in just a couple of years.
Note that the best friend of compounding is time. It needs time to compound.
Do not get too excited yet. It is only the start of your beautiful journey toward financial freedom.
What is Sun Maxilink Prime?
Sun Maxilink Prime is a ten (10) year pay VUL plan from Sun Life. It has a combined benefit of life insurance protection and an investment component. It aims to provide you with financial security and peace of mind while you grow your funds over time.
Sample Proposal of Sun Maxilink Prime
I will share with you the proposal I made for myself. As a millennial, I want my plan to be affordable but can still provide me with enough life insurance coverage and a good retirement fund at age 65.
Federico Suan, Jr.| 25 yrs old | Male | non-smoker
START at age 25 and pay Php 25,310.50/yr or just Php 2,109.21 per month for ten (10) years.
STOP paying the premiums at age 35 with a total accumulated fund value of Php 231,017.
WAIT until age 65 to have Php 3,891,872 worth of retirement fund.
So here are the benefits of Sun Maxilink Prime.
Insurance Benefits of Sun Maxilink Prime
My family will get a lump sum of Php 700,000 if I die early due to an accident, illness, or natural cause. This amount can help them proceed with their life even after my sudden demise. Hopefully, my brothers will use this amount to finance the needs of my Lola and younger sister.
Total Disability Benefit (TDB)
I also attached a waiver of premium (Total Disability Benefit or TDB) that will waive my future payments if I get disabled and can no longer work. It is as if I am still paying the plan when I get disabled.
Accidental Death, Dismemberment, and Disablement Benefit (ADDD)
Accidental death, dismemberment, and disablement benefit (ADDD) give me a financial assurance that my family will get Php 350,000 on top of the life insurance coverage of Php 700,000 if I die due to an accident. If I lose a part of my body in an accident, I will receive up to Php350,000. When I become totally and permanently disabled, Sun Life will give me up to Php 35,000 per year.
Critical Illness Benefit (CIB)
Critical Illness Benefit or CIB is a rider I attached to my plan to give me Php 1 Million when I get diagnosed or treated for any of the 36 critical illnesses. It includes stroke, heart attack, invasive cancer, etc. This lump sum can help me with my finances, so I can get the treatments I need and not be a burden to my family.
Hospital Income Benefit (HIB)
My plan has Hospital Income Benefit or HIB. I will receive Php 1,500 per day if confined in a hospital for up to 1,000 days of confinement. It doubles to Php 3,000 when I get admitted to ICU or confined due to any of the following dreaded diseases: acute heart attack, chronic liver disease, dissecting aortic aneurysm, end-stage lung disease, end-stage renal disease, invasive cancer, major organ transplant, multiple sclerosis, poliomyelitis, progressive muscular atrophy, and stroke.
Investment Growth of Sun Maxilink Prime
Upon retirement, at age 65, the projected fund value is Php 3,891,872, which makes me a millionaire retiree (yippee!).
If I decide to retire earlier, at age 55, I will have Php 1,508,909, which I can use to start up a small business.
Hopefully, my business venture will become a success.
I can also use the fund value for my kids’ education or buy a house or a nice car.
Thus, I can use the fund for whatever purpose that is important to me.
Isn’t that great?
Request for a FREE Proposal?
Remember, nothing comes good from procrastination but regrets. You don’t want to live in regret, right? So I’ll be waiting for your inquiry, my future client 😊. You may reach me via 0917-775-8352 (Globe) and 0943-821-4752 (Sun and Smart), or e-mail me at firstname.lastname@example.org. You may also click the buttons below or fill out the form.
Frequently Asked Questions:
Are smokers allowed to avail of this plan?
Yes, but you will have to pay more compared to a non-smoker.
Do I need to undergo a medical examination?
Medication examination is for applicants with pre-existing health conditions; age can also be a factor.
Can I avail of ADDD without the TDB?
No, Total Disability Benefit (TDB) is requisite in getting an ADDD. You can get TDB without ADDD but not the other way around.
Is my insurance coverage guaranteed?
Insurance is the only guaranteed amount in the policy. It will not be affected by any fluctuations in your investment fund or any partial withdrawal.
Is my projected fund value guaranteed?
The investment component and chosen fund are connected. It is directly affected by any fluctuation in unit price. Thus, it is not guaranteed because the actual fund value can be higher or lower than the projections.
Am I required to pay after 10 years?
You may still be required to pay again if the fund value is no longer sufficient to pay for the charges. If you have CIB and HIB, you must pay until age 70 and 60, respectively.
Will I be allowed to withdraw money from my fund value?
Partial withdrawal is allowed, and corresponding charges may still apply. Life coverage will remain in force for as long as the fund value left is enough to shoulder the insurance charges.
What happens to my policy if I get all the funds?
The entire withdrawal of the fund value is almost the same as surrendering it to Sun Life. Consequently, life insurance coverage also ceases.
Federico is an electronics engineer, financial blogger, insurance agent, and a certified investment solicitor. A multi-awarded financial advisor with clients ranging from lawyers, doctors, engineers, accountants, business owners, company directors, and OFWs to minimum wage earners had sought advice from him in achieving lifetime financial freedom.