As a millennial, I never thought about life insurance. My mindset back then was, I am 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), or others call it “carpe diem” (seize the day). But whatever term we use, what’s certain is, we are just focusing on the present and little to what’s going to happen in the future, right?
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. And part of being wiser is by getting an insurance plan from Sun Life called Sun Maxilink Prime. First, let me share my story, and we’ll talk about 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. During that time, it was only about a month since I started working. You know it’s true, I enjoyed one full year away from work. And I’ll give you all the right to ask me why? Maybe because at that time I know that my father will provide for everything, but then he died unexpectedly.
I can still remember it was dawn. It’s cold and raining when I heard a loud voice from his room. So I immediately rise from bed, checked on him, and called an ambulance to rush him to the nearest hospital.
After the CT scan, the doctor broke the news to us that he is suffering from a stroke; he might leave us soon.
While sobbing, we are 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 just don’t know how to continue it without him.
My Life After the Tragedy
I was only 23 at that time. You know, it’s sad even up to this day. But I don’t have a choice but to move on and suck it up. My Lola and younger sister 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 the needs of my family, like utility bills, medicines, tuition fees, etc.
Even if they are my family, there will be times when I just wanted to give up. It’s simply too much for a 23 years old guy to cope up 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, but we also lose the income he is providing to 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 on my mind. I need to find the answers.
I badly need to know how to prevent this from happening again to my family.
Why is Life Insurance so Important?
But what if there’s a way you can do to prevent this from happening to your family? Your child is taking up your role.
I believe I was just lucky, in a way, because my father died after I landed my first job.
But imagine if it happened during the time I was still studying. I might have been forced to quit schooling and took 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 my anxiety could be addressed by getting life insurance.
I initially thought just to buy term insurance and go BTID (Buy Term Invest the Difference) because I have an investment in stocks already. 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, and it’s called Sun Maxilink Prime. Just like you, I wanted to get the BEST plan based on my needs and can answer my worries.
It is just life insurance with investment components. Wherein my investments will be in a similar form of mutual fund in which I can choose between stocks or bonds, or I may opt to enjoy both.
What I love about Sun Maxilink Prime is the financial security it gives my family while I get to have a growing fund.
It covers death, so my family can get a sizeable amount to continue their dreams. I can get something if I get into an accident and become disabled or lost any parts of my body. In case I get critically ill, the insurance company will give me the promised amount so I can get the treatment I need.
On top of that, I get to have a growing fund that I can use to fund my dream business or as a retirement fund. Or simply something I can just 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 10 years. And you can increase its fund value by doing regular top-ups or excess payment of your regular premium.
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 closing.
Now, I will be sharing 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)
Among the modes of payment going, the annual payment is the most recommended. People tend to forget to pay their dues. By going annually, the hassle of frequently paying the premiums is eliminated. It is also beneficial for the investment part because the portion is already invested and earning.
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, 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.
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. Hopefully, my brothers will use the money to finance the needs of my Lola and our younger sister.
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 my future payments. It is as if I am still paying the premiums. Though optional (it only costs less than a thousand pesos in 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 would 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 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
I can claim a lump sum of ₱2 Million when I get diagnosed or get treated for any of the 36 critical illnesses listed here. This rider covers most of the critical illnesses around 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, right?
Hospital Income Benefit (HIB)*: ₱2,500/day (1000 days maximum)
I will receive ₱2,500 per day when I get confined to a hospital as a result of sickness or injury. It 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.
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 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) that is 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 10% p.a.
It is not guaranteed as past performance will not necessarily indicate the future result.
There are several funds you can choose from, and it can 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
You can withdraw against your fund value anytime without charges nor interest, unlike older kinds 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.
The accumulated fund value can be used as an 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 your investment funds.
(You thought life insurance is just about death benefit. There is so much more I can gain if you avail of a VUL policy.)
Exactly! VUL is more than just life insurance combining income protection and investment opportunity for every Juan.
Why choose Federico 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 he is ready to serve.
- Friendly with the utmost professionalism. He won’t give you that ultra-silent awkward moment when meeting up—no dull moments. He ensures an enjoyable and factual meeting.
- Reachable. You might have a sudden question so crucial with you; that’s why his lines are always open to attend your needs.
- Well-trained Financial Advisor. Attended several pieces of training and seminars inside and outside Sun Life to upskill himself because you only deserve the best.
- Needs-based financial solutions. His financial advice is based on your current financial situation and needs.
- Non-discriminating. His clients range from minimum wage earners to engineers, accountants, doctors, lawyers, company directors, etc.
- Full-time Financial Advisor. He can meet you in any place that you feel convenient with you any time of every day.
- Purpose and substance. His mission is to help clients achieve lifetime financial security and healthier lives.
For all Financial Advisors like us, we treat life insurance as LOVE insurance. Because when you love someone, you would want to give every protection you can get to ensure their safety and well-being, right?
I hope you enjoyed my blog!
Request for a Proposal?
Protect the future of your family by getting a VUL plan NOW! Request for a FREE quotation or financial planning, which can be done 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.