Being part of the millennial generation, I never thought the importance of life insurance. Maybe because I do not know what life insurance is about. You know when you’re young you tend to have lots of YOLO (You Only Live Once) moments. Getting insured was least of our priorities. Yes, I admit that I had a lot of those moments as well but who hadn’t? Sorry, I am trying to justify my behavior here 🙂 But things changed when my father died. His sudden demise has shaped me into the person I am today: practical and wise. And part of being wise is by getting a VUL policy from Sun Life called Sun Maxilink Prime. But we’ll talk about that later.
You may want to skip the story and proceed to the benefits of Sun Maxilink Prime. Please click [HERE].
My beloved father succumbs to the hands of God last 2015. It was only about a year after I graduated from college (2014 when I finished my degree in Electronics Engineering in PUP) and passed the board exam the same year. The idea of someone you love and depended on leaving you behind is something that barely came to my mind. We don’t think about it because it is too morbid to be tackled to the point we consider it a taboo. But reality says the opposite, my father indeed left us behind.
My father was rushed to the nearest hospital in the area and was treated immediately. We found out that he is suffering from a hemorrhagic stroke in the pontine area. A hemorrhagic stroke means he is bleeding inside his brain, it’s unfortunate that he belongs to the 30% stroke patients who suffer from bleeding. After the CT scan, the doctors immediately told us about his condition and possibility of dying soon. But that doesn’t stop us from hoping that he’ll get better. He’s a strong man. This is just a stroke but because he is suffering from a bad one he can no longer bear the pain and succumbs from it just a few hours after admission.
The other 70% will suffer the more common kind of stroke which is called ischemic stroke or the blockage of air to the brain due to a blood clot in a blood vessel going to the brain.
My Life After the Tragedy
I was only 23 that time. It was sad. Even up to this day it is still is. But I need to move on and suck it up. I now have my Lola and younger sister to support. From being careless to careful. I can no longer do the things I previously enjoyed. My life is now devoted to paying bills, medicine, and school fees. Yes, they are my family, the family I love, but it was hard for a 23 yr old guy to cope up with this kind of responsibility. My day job can no longer pay my bills. So I need to work overtime and do some raket just to fill the gap. It is tiring but fulfilling. I have no choice but to keep on going.
This leads me to think that this problem might have a solution. Sabi nga nila “sa bawat problema may solusyon.” Pero ano? Paano? So much question running on my mind. I need to find out. I badly need to know how to prevent this from happening again to my family. Honestly, if I am not strong enough I might break down and just live the life I wanted. Leaving my responsibilities is easy but I cannot forsake my family. I believe most of you will do the same if you are in my situation. Just stand strong and face every challenge with a smile.
The Importance of Life Insurance
But what if there’s a way you can do to prevent this from happening to your family. Your children taking up your roles. I believe I am just lucky because my father died (our breadwinner) after I landed my first job. But if this happened during the time I was still studying, I might have been forced to quit school and took a job I never imagined myself doing. I honestly do not know what to do. I don’t want my family to suffer the same fate. My father failed to plan and it was an important lesson I learned on my part. I don’t want them to suffer the same fate. Luckily, I met someone who showed me how my anxiety can be addressed by getting a life insurance.
When someone dies in your family you tend to search the things related to his death. The search ranges from symptoms to prevention until I came across the topic of life insurance. Luckily, my manager’s wife was a Financial Advisor in Sun Life, my co-worker is working part-time in another insurance company, the sister of my colleague is also an insurance agent. This means that I can easily ask them questions about this and that. Literally, I was shopping for the best life insurance. I initially thought to just buy a term insurance and go BTID (Buy Term Invest the Difference) because I have an investment in stocks already. But a VUL (Variable Unit- Linked) policy struck my heart.
Just to iterate that BTID strategy is NOT for everyone. It is a strategy and not an insurance plan. I will write a separate post about it to know if this kind of strategy will suit you better. No worries, I will link it [HERE] once done.
Sun Maxilink Prime- Life Insurance Plus Investment
It’s been months of countless research after I decided to get a VUL policy from Sun Life called Sun Maxilink Prime. Just like you, I wanted to get the BEST plan. The plan that will answer my worries and will ease my anxiety.
VUL or Variable-Unit Linked Policy may seem complicated but it’s quite easy to understand. It is just a life insurance coupled with investment. Your investment will be in the form of mutual fund in which you can choose between stocks or bonds or you may opt to enjoy the beauty of both.
The beauty of Sun Maxilink Prime is the financial security that it gives your family from the result of an accident like dismemberment of any parts of the body and disablement. It also gives financial blanket when diagnosed or gets treated for any of the 36 critical illness listed in the policy contract. If you die due to a natural cause or an accident your family can claim a sizeable amount to continue the life they are living today.
Not to mention that it has an investment component which is a wonderful addition to the insurance policy. In other words, Sun Maxilink Prime gives a living benefit and death benefit (the one we normally know when we hear the word “life insurance”). Yes, you read that right. It has a living benefit. We will tackle that in a bit. I know it makes you feel excited. Even I when I heard that the first time I feel agitated to know more as well.
Sun Maxilink Prime Brochure
Sun Maxilink Prime is a 10-yrs-to-pay VUL plan. It means you’ll only be required to pay the plan for only 10 years or you may finish it earlier by paying it in advanced. Isn’t that neat?
Note: Sun Maxilink Prime is linked to your investment which means it may suffer from the volatility of the market you’ve chosen. When this happens, you may be required to resume paying the insurance charge to prevent your policy from lapsation.
I will be sharing with you guys 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)
Among the modes of payment going annual payment is the most recommended. People tend to forget paying their dues. By going annual the hassle of paying the premiums monthly is eliminated as you’ll only need to pay it once a year. Not to mention that it also good for the investment part. As soon as you pay your premiums part of it will be allocated to your investments. Going annual means you are giving your money more time to compound.
Clients can choose between, annual, semi-annual, and quarterly. Monthly payments are only available when you pay using the auto-debit arrangements in banks. A policyholder can also switch from paying the premiums from semi-annual to annual, monthly to annual, etc. without extra charge.
Let’s Talk About the Benefits
My plan was a bit pricey as 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 what you can afford now. It’s better to start small than never to start at all. You gotta start somewhere.
Life Coverage: 1 Million Pesos
This 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 they will receive this amount. Hopefully, my brothers will use the money to finance the needs of my Lola and our younger sister.
Total Disability Benefit (TDB): Waiver
This 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 my future payments. It is as if I am still paying the premiums. Though optional, (it only cost me less than a thousand pesos for it in a year) I consider this a MUST have rider in any life insurance policy.
Accidental Death, Dismemberment, and Disablement Benefit (ADDD): ₱500,000
If I die due to an accident my family will get this amount 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 will receive a percentage of my ADDD coverage. For example, if I lost one eyesight, I will receive ₱250,000 (half of my ADDD coverage). If I am disabled (can no longer work due to accidental disability), I am entitled to receive 50,000 pesos per year for 10 years, for a total of 500,000 pesos.
Critical Illness Benefit (CIB): ₱2 Million
A lump sum of worth ₱2 Million is the amount I can claim when I will be diagnosed or get treated for any of the 36 critical illness listed here. This rider covers most of the critical illnesses around like stroke, heart attack, brain tumor, major organ transplant, and invasive cancer.
The premium for this rider increases every 5 years. After the paying period, the accumulated investment can shoulder the annual premium for this rider or you could pay it annually instead so that your investment could not be touched.
This is the rider I love as my father suffered from a stroke. Though it is not hereditary, we must think of the future. Yes, I may be healthy today but I am not certain what tomorrow may bring plus the rider doesn’t just cover one critical illness but 36 of them.
Hospital Income Benefit (HIB): ₱2,500/day (1000 days maximum)
I will receive ₱2,500 per day when I get confined in a hospital as a result of sickness or injury. This amount doubles or become ₱5,000 when I get admitted in 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.
Annual Premium (10 Years To Pay): ₱38,465
It is just about ₱3,205 per month or just ₱107 per day.
Total Premiums Paid: 10 x ₱38,465 = ₱384,650 ONLY
Imagine, I will only pay a total of ₱384,650 for all the benefits listed above.
But what if I am lucky enough not to die early, get disabled, or hospitalised?
(Suan, parang lugi ako kapag nagka-ganyan?)
Don’t worry because a VUL policy has an investment component (the much coveted living benefit) which is designed to accumulate wealth while giving you protection.
If the investment was placed in 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 10% p.a. but it is not guaranteed as past performance will not necessary indicate the future performance of the fund. Index Fund is just one of the funds you can choose when selecting where to invest your money. Other funds include: Balanced Fund, Bond Fund, Equity Fund, Money Market Fund, MyFuture Fund, Growth PLUS Fund, and Captains Fund. These funds can be explained further by your financial advisor.
The projected fund value at age 45 is ₱848,275
The projected fund value at age 55 is ₱2,181,982
The projected fund value at age 65 is ₱5,642,255
You can withdraw anytime against your fund value without interest accruing, unlike the traditional life insurance. A VUL policy is less likely to lapse for as long as the fund value is enough to pay the insurance charge.
The accumulated fund value can be used as educational fund for your kids, retirement fund, extra health fund, or to fund your life goals etc. You have the freedom to choose whatever you may want to do with the accumulated funds.
(I thought insurance is just about death benefit. There is so much more I can gain pala if I avail a VUL policy)
Exactly! VUL is more than just a life insurance combining income protection and investment opportunity for every Juan.
Why Choose Federico Suan, Jr. to be Your Financial Advisor?
- Young professional. Picking a young Financial Advisor means he can grow old with you. It is a lifelong commitment and I am ready to serve.
- Friendly with the utmost professionalism. I won’t give you that ultra-silent awkward moment when meeting up. No dull moments. I ensure a fun and very factual meeting.
- Attended various training and seminar. I believe in quality service. And one-way to provide it is to constantly improve yourself every single day.
- No pushy calls as I respect your privacy.
- Available for meetings even on weekends. Meeting place can be Sun Life office near you or any place that you deemed convenient.
- My mission to help you secure the future of your family. I secured mine. Hopefully, yours is next.
For all Financial Advisors like us, we treat life insurance as LOVE insurance. Because when you love someone, i.e. your family, you don’t leave them hanging. You want every protection you can get to ensure their safety and well-being, right?
I hope you enjoyed my blog!
WANT A FREE PROPOSAL?
You too can protect the future of your family by getting a VUL policy. Some terms are technical in nature that an ordinary person cannot understand without the help of a Licensed Financial Advisor. I recommend a personal meeting. No pressure nor obligation on your part will be imposed upon appointment. You may not like it and it is perfectly fine with me. You can reach me thru 0917-775-8352 or e-mail me at firstname.lastname@example.org or at my official e-mail via email@example.com
Federico is an electronics engineer, financial blogger, insurance agent, and a certified investment solicitor. A multi-awarded Sun Life 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.