VUL: Hit two financial goals with just one plan

For many, one turn-off feature of Pure Insurance is that the policy holder will not benefit from all premiums paid. It's like buying something you won't even use while you are still alive.

But is there a way for us to pay premiums and benefit from it in the future?

Yes. Get to know the beauty of a Variable Unit Linked (VUL) product.

WHAT'S A VUL?

A Variable Unit Linked (VUL) product is a combination of life insurance and unit-linked investments. This means that for every premium you pay, part of it will pay for insurance coverage and part of it is allocated in investments. The investment part of this product is called Fund Value.

It's a strategic way to hit two financial goals (income protection and wealth growth) with just one plan.

You can also learn about VUL in this video by Mr. Aya Laraya of Pesos and Sense:

DO I NEED A VUL PRODUCT?

For those of you who are in your twenties or early thirties, you might think that getting a Life Insurance Product is too early for you. I understand where you're coming from since I had the same thoughts before. Sinasabi ko lagi: "Malakas pa naman ako, saka na yan pag naisip ko na na kailangan ko."

I flirted with financial procrastination. It is the habit of delaying or postponing something important in one's financial affairs.

Lately ko lang na-rerealize na nag-sayang

ako ng madaming panahon.

In fact, someone said that the best time to get insurance was yesterday just to emphasize its urgency.

Now, what if my budget or a VUL is very small? Is there a solution? Yes. You can start with the Buy-Term-Invest-the Difference method or BTID. Know how it works here. This is also good for those already savvy in investing and can watch the market on their own.

But if you have the budget and are you think that BTID is not for you, go for a VUL product.

In fact, this is perfect for those who are still in their twenties and thirties. Here's why:

1. Premiums are cheaper. Life Insurance premiums get more expensive as the person advances in age. For example, a 20 year old may pay less than Php 2,000 in monthly premiums for a Php 1,000,000 coverage (payable in 10 years) while a 34 year old would need to pay Php 3,000 monthly for the same amount of coverage?

2. The potential of money to grow is better for those who start early. As seen in this video by Mr. Aya Laraya of Pesos and Sense, those who start to invest early earn better than those who start late:

3. You'll not be young forever. On top of it all, we don't know if were still alive tomorrow or the next week, or the next year. We may have big dreams for our family or plans to do this or that.

But time flies fast. Youth fades. Strength wanes. If you continue delaying...

you might wake up one day realizing that wala kang nasimulan kahit isa.

SO, WHAT'S YOUR PLAN?

If you want to get insured and enjoy growth from your premiums in the future, get a Variable Unit Linked product. And do it while you're still young, when premiums are cheaper and the potential for growth is bigger.

Thanks for reading my article. Send me a message for questions by filling out the form below. You can also request for an appointment. It's always good to meet 1-on-1 to discuss your financial needs and plans. Also, feel free to put your comments below. I hope to hear from you.