Paanong mas maliit ang fund value sa VUL kaysa sa BTID?

Due to insistent public demand, I am again going to illustrate why term is superior to VUL.

Grabe ang mga bashers online, ha? Nakaka-hurt. Puwede pong kaunting hinahon at respeto kapag sumasagot sa post ko. Ipaliwanag niyo po ang side niyo na hindi kinakailangang mag ad hominem, mambastos at mag-mura.

Hindi ko po ugali ang makipag-away, kaya eto, explain na lang po ako ulit.

Two insurance policies: VUL and Term

Ang average age po ng aking mga followers ay 35 years old. Kaya minarapat kong kumuha sa mga kaibigan kong insurance agents ng quote for term insurance at VUL that would have a face amount of PhP1 million.

Here are the details:

Premium

Sa VUL, part of the cash outlay that you give to the insurance company is used to pay for premium, fees, charges and fund allocation for your investment which is typically called the fund value. In our example, this is PhP48,000 that will be paid in seven years.

Para naman sa term insurance, ang premium ay nag-iiba dahil ito ay renewed every year. At ito po ay tumataas habang tumatanda tayo. Makikita sa table ang ibabayad nating premium sa term insurance in the next 30 years.

Net present value

Ang net present value ay isang time value of money strategy kung saan maihahambing natin ang halaga ng pera sa isang nakatakdang panahon. Halimbawa, ang piso ngayon ay di hamak na mas mahina kaysa sa halaga nito ten years ago.

vincerapisura.com


17 Comments

  • Jhoms says:

    Thank you Sir Vince sa super detailed and totoo at walang halong biased explanation mo po na ito at kayo lang din po (in my knowledge) ang nakita kong against sa VUL so far. Ngayon, sa totoo lang napapaisip po akong isurrender and policy ko knowing na malulugi ako dahil almost half lang ng total na binayad ko ang makukuha ko. I’m in the second year po sa policy ko at ngayong nabasa ko to, napapaisip ako. I’m 25 yrs old ayoko pong masayang mga pinaghihirapan ko at dahil hindi naman malaki kinikita ko per year a little above minimum lang po so super nagtitipid po ako makabayad lang sa premium ng VUL ko. Sir, kung maaari matulungan nyo ko. 350K po ang face amount ng policy ko with accidental death benefit of 350K din. 19K po premium ko per year. Sobrang wala pa po akong alam noon sa mga ganitong bagay last year, so ang nasa isip ko basta may insurance na ko, ok na ko. Sulit pa po ba ang policy ko? mas maigi po bang isurrender ko na to? Nabasa ko naman po yung post nyo about sa pag-susurrender ng policy or kung anong gagawin kung sakaling nandito ka na sa sitwasyon na may VUL ka. Umaasa lang po ako sa mas personal na payo ninyo having my details given at sa expertise nyo. Maraming maraming salamat po. Super aabangan ko po ang reply nyo.

  • Isagani Estanislao says:

    BTID offers the 1M insurance (for example) up to age 69 or 70 only while the VUL can offer more than 1M if you opted to continue paying the premium up to 70 years old and beyond. The VUL of my son which I am paying is 5,459.00/month and it has a 1M coverage for a 10 year paying period. Then if he opted to continue paying, the monthly premium will be 3,581.55/month up to the age of 70. The total cash layout up to age 70 is 2,159,417.90. At the age of 60, the benefits will be 19M (8% annual growth) while at the age of 70, the benefits will be 41M (8% annual growth). Although the annual rate of return is not guaranteed, I believe the same formula is also being applied in the BTID in order to satisfy the reasoning.

  • Lucy says:

    Sir Vince, it is not necessarily mean na pag matanda na ang isang tao ay wala ng use ang insurance, this can use as estate tax proposition or wealth transfer for the beneficiary as legacy to the love-ones kung wala naman properties for estate tax.

  • Dr. Edwin Salagoste says:

    Sir na hurt ka eh kung paano mo tinira yong VUL dapat nag hinay hinay karin muna. I suggest sa TV appearance mo mag discuss kayo ni Sir Boyet Enicola Jr para maliwanagan ang tao at hindi one sided. Invite pa kayo ng galing sa iba investments para tao humusga.

  • Marvin says:

    Vincent Rapisura, Could you post a comparison for someone who could only shell out 12K per year? LIFETIME investment. age 35-65. 1M coverage.

  • Jerome Marcos says:

    Hi, for the sake of validation, can I request for the details/proposal/contracts of the insurance plans you used in your illustration? Thank you.

  • Marione says:

    HAhaha opo. Dumirecho ko sa tables. Hehehe. Ty sir.

  • Marione says:

    Sir Vince, sa anung instance nyo po mairerecommend ang VUL? Thanks po.

  • Manuel Enicola Jr. says:

    Masyadong mahal ang VUL na ginamit mo. Kaya panalo ang BTID. Obvious ba? Why not try 3,000,000 sum insured with 18,000 annual level premium for issue age 35? Then, match a BTID with that. I will send you the illustration to show you that a PROPERLY DESIGNED VUL is better than BTID….

    • Vincent Rapisura says:

      Sige daw, ipakita ang sinasabi niyo. PM me a pic of the policy you are saying and then I will analyze that and compare it with BTID.

  • Avi says:

    This is very good illustration, Sir. Sa palagay ko po, ang downside nga lang ng Term Insurance ay papaano kung di ka na insurable kahit may pambayad ka. Dahil hindi naman natin alam if we will remain healthy hanggang 65 or 70 years old tayo which is the maximum age na makakakuha ng Term Insurance.

  • Elly says:

    Sir Vince…thank you po..kase po balak ku sanang kumuha ng VUL pero mas maigi pala na dalawa..thank you po..Godbless you always sir…

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