As a millennial, I never thought about life insurance. My mindset back then was different. I’m still young and healthy, so I don’t need it yet. Just like you, I’m living the now; millennials call it YOLO (You Only Live Once), and others call it “carpe diem” (seize the day). But whatever term we use, what’s certain is that we tend to focus on the present and little about the future, right?
Table of Contents
How Did I Become a Breadwinner?
But for me, things changed when my father died. His sudden demise has helped me to become the person I am today: practical and wise. As I became more discerning about finances, I got an insurance plan from Sun Life called Sun Maxilink Prime. First, let me share my story, and we’ll discuss it later.
If you want to skip the story and proceed to the benefits of Sun Maxilink Prime, you may click [HERE].
From YOLO to WOLO (Weeping Over Lost Opportunity)
My father died in 2015. It was just a year after I got my license as an engineer. I enjoyed one year of vacation before working. And I’ll give you all the right to ask me why? Maybe it’s because I know my father will support me no matter what. But unexpectedly, when I was ready to give my all in my career, he died just a month after I started working.
It made me realize that we cannot control things, and time will not wait for anyone.
I can still remember it vividly. It was dawn, cold, and raining when I heard a loud voice from his room. So I immediately rose from the bed, checked on him, and called an ambulance to rush him to the nearest hospital.
After the CT scan, the doctor broke the news that he was suffering from a stroke; he might leave us soon.
While sobbing, I’m still praying for miracles. Being a son, I am still hoping he’ll get better. I have so many dreams for the family, and I don’t know how to continue them without him.
My Life After the Tragedy
I was only 23 at that time. You know, it’s sad to even up to this day. I don’t have a choice but to move on and suck it up. My Lola and siblings are now depending on me.
So from being careless, I have become careful. It’s when I can no longer do the things I previously enjoyed. I have been so focused on providing for the needs of my family.
But even if they are my family, there will be times when I want to give up. It’s simply too much for a 23 years old guy to cope with this kind of responsibility.
And then, I realized two things.
My family suffered 2 kinds of death.
We don’t just lose a father. We also lost the income he provided us.
So it leads me to think that this problem might have a solution.
Sabi nga nila “Sa bawat problema may solusyon.” Pero ano? Paano? So many questions are running in my mind. I need to find the answers.
I must prevent this from happening again to my family.
Why Life Insurance is Important?
But what if there’s a way you can do to prevent this from happening to your family? Your child taking up your role.
Somehow, I believe I was just lucky, in a way, because my father died after I landed my first job.
I can’t imagine if it happened when I was still studying. I might quit schooling and take a job I don’t want to do.
One thing is for sure.
I don’t want my family to suffer the same fate.
Thus, I must do something to prevent it, and luckily, I met someone who showed me how to address it by getting life insurance.
I initially thought to buy term insurance and go BTID (Buy Term Invest the Difference) because I’m already invested in stocks. But there’s something with a VUL (Variable Unit- Linked) plan that struck my heart.
So here’s why.
BTID strategy is NOT for everyone. It is merely a strategy and not an insurance plan. If you want to know about it, you may click [HERE].
Sun Maxilink Prime: Life Insurance with Investment Plan
It’s been months of countless research until I decided to go for a VUL plan from Sun Life called Sun Maxilink Prime. Like you, I wanted to get the BEST plan based on my needs to address my worries.
This plan is life insurancewithinvestment components. Wherein my investments will be in a similar form of mutual fund in which I can choose between stocks or bonds, or both.
What I love about Sun Maxilink Prime is the financial security it gives my family while having growing funds.
It covers death, so my family can get a reasonable amount to continue their dreams. I can get something if I get into an accident and become disabled or lose parts of my body. If I get critically ill, the insurance company will give me the promised amount, which I can use for my treatment.
On top of that, I get to have a growing fund that I can use to fund my dream business or have a blissful retirement. Or simply something I can look forward to receiving.
I know it makes you feel excited, right? I also felt the same feeling when I heard it the first time.
Sun Maxilink Prime Sample Proposal
Sun Maxilink Prime is a VUL plan you can pay for at least ten (10) years. And you can increase its fund value by regular top-ups or excess payments.
Just note that Sun Maxilink Prime and your investment are linked, which makes it susceptible to volatility. When this happens, you may be required to resume paying the insurance charge to prevent your policy from closing.
Now, I will share with you the proposal I made for myself.
Federico Suan, Jr., Male, 25 yrs old, non-smoker
Annual Premium: Php 38,465 Semi-annual: Php 19,232.5 Quarterly: Php 9,616.25 Monthly: Php 3,205.42 Daily: Php 106.85 (just the price of a fast-food combo meal)
Annual payment is the most recommended. People tend to forget to pay their dues. By going annually, you don’t have to pay it frequently. Furthermore, it will help the investment fund to grow faster because the entire investment portion is invested at the start of each policy year.
So going for the annual mode means you are giving your money more time to compound.
You can choose between annual, semi-annual, and quarterly. Monthly payments are only available when you pay using the auto-debit arrangements.
Let’s Talk About Life Insurance Benefits
My plan was a bit pricey for a young professional, It is because I wanted to be well covered. Anyways, your plan will be tailored-fit based on your needs, and if you feel you can’t afford the recommended plan, you can ask your Financial Advisor to adjust it to your liking. It’s better to start small than never to start at all.
Life Insurance Coverage: 1 Million Pesos
It is the amount of money my family will get if I die due to an accident, illness, or natural cause. I will leave them peacefully, knowing that they will receive this amount. I know no amount of money can ever replace me, but they still need to move forward. Hopefully, my brothers will use the money to finance the needs of my Lola.
Total Disability Benefit (TDB): Waiver
It is a rider (optional) that can be attached to an insurance policy. If I get disabled and can no longer work, this rider will waive the premiums. It is as if I am still paying for my plan. Though optional (it only costs less than a thousand pesos a year), I consider this a MUST-have rider in any life insurance policy.
Accidental Death, Dismemberment, and Disablement Benefit (ADDD): ₱500,000
My family will get this amount if I died due to an accident, together with the basic life insurance coverage, so the total death benefit is ₱1.5 Million. If I survived the accident but lost any part of my body, I would receive a percentage of my ADDD coverage. For example, if I lose one eyesight, I will receive ₱250,000 (half of my ADDD). If I am disabled (can no longer work due to accidental disability), I will receive 50,000 pesos per year for ten (10) years, for a total of 500,000 pesos.
Critical Illness Benefit (CIB)*: ₱2 Million
I can claim a lump sum of ₱2 Million when I get diagnosed or treated for any of the 36 critical illnesses listed here. This rider covers the most common illnesses in the Philippines, like stroke, heart attack, brain tumor, major organ transplant, and invasive cancer.
*Please note that the premium for CIB and HIB continues after 10 years. And as for CIB, premium increases every 5 years.
I love this rider because my father died from a stroke. Though it’s not hereditary, we must still think of the future. And yes, I may be healthy today, but I’m not sure about the future.
Hospital Income Benefit (HIB)*: ₱2,500/day (1000 days maximum)
I will receive ₱2,500 per day when confined to a hospital due to sickness or injury. It doubles to ₱5,000 if I get admitted to ICU or admitted 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.
I will only pay a total of ₱384,650 for all the benefits listed above.
But what if I am lucky not to die early, get disabled, or be hospitalized?
Total Premiums Paid: 10 x ₱38,465 = ₱384,650 ONLY
(Suan, parang lugi ako kapag nagka-ganyan?)
Don’t worry because a VUL policy has an investment component (the much-coveted living benefit) designed to give you financial protection while giving you a growing fund.
If the investment is in the Index Fund, composed of top publicly listed companies in the Philippines (i.e., Jollibee, Ayala, SM, San Miguel, URC, BPI, etc.) The average historical return is around 8% p.a.
It is not guaranteed because the past performance will not necessarily indicate the future result.
There are several funds you can choose from the plan. They will be explained further by a financial advisor.
Projected Fund Value
The projected fund value at age 45 is ₱848,275 The projected fund value at age 55 is ₱2,181,982 At age 65 is ₱5,642,255
Withdraw against the fund value anytime without charges or interest, unlike other types of insurance. Also, a VUL policy is less likely to lapse for as long as the fund value is enough to cover the insurance charges.
Protect the future of your family by getting a VUL plan NOW! Request a FREE quotation or financial planning online. You may also reach me via Facebook, 0917-775-8352 (Globe) and 0943-821-4752 (Sun and Smart), or e-mail me at email@example.com.
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.
DISCLAIMER: This website reflects only the views and opinions of the author, Federico Suan, Jr., and is not part of any official communication tools of any life insurance and investment company. The author has no responsibility against the comments posted by visitors. Necessary actions will be done accordingly as the website has no intention to malign its readers from factual information. Constant efforts is done by the author to bring precision in every post.