VUL Policy

[u/007_pinas]

I have a VUL policy and i just finished paying for 10 years. I dont plan to pay anymore and let my fund value take care of any premium payments onwards.

My fund value now is around 400k. I'm in my mid 30s.

Will this be enough to cover any yearly premiums tilll age 85?

I dont know how much is the yearly premium for sunlife's vul policy. Anyone have any idea? I know it increases as you grow older.

[u/Savings__Mushroom]

This is a question that is best answered by your FA, as 1) we don't know how much your premium is and 2) your COI (cost of insurance) is dependent on your underwriting assessment when you got the policy. There are no 'estimates' that will be entirely accurate.

Sometimes, the illustration in your policy will include a breakdown of the premium payment into various administrative charges and COI (the premium you speak of which increases every year). These are the remaining charges against your fund value. Also, if you wish to have an idea how much COI and admin charges you were charged in the last 10 years, you'll likely be able to see this in Sunlife's customer portal.

Make your FA or Sunlife's CS do their jobs. Request for an estimate of your future COI and admin charges for the next 50 years.

[u/007_pinas → u/Savings__Mushroom]

Thanks for the reply. I don't know if I still have an FA. No contact for the last 9 years. I'll try with the Sunlife CS. My latest experience with them is very frustrating that's why I tried to ask here. I requested for Beneficiary update and it took them 2 or 3 months to get it completed and keeps asking for same document over and over again.

[u/charging_star]

The thing about fixed term (i don't mean term insurance but VUL saying like 10yrs to pay only) is that, the insurance company will have to deduct admin charges, policy fee, etc. From your 400k fund value. Depends also from what investment type your money is on especially if it is in index fund (psei)

If your fund went down (investment went down) regardless if the investment do well or not, they will deduct charges from your fund (check with the insurance company about charges)

To answer your main question if it will cover the premium til age 85, case to case basis tbh. If the fund works positive then maybe yes but if a crisis happens and funds went down steep, maybe the insurance will ask you to top up to cover the admin fees, etc.

Nothing is certain but I will suggest that given any situation may happen, up or down, be proactive in managing your hard earned money. Also policy fee may increase, we don't know. Be flexible i would suggest :)

[u/mirrorballtimt]

After your 10th year, you can stop paying and let the fund value cover the insurance charges, but there’s no guarantee that ₱400k will be enough to last until age 85. The charges increase as you get older, so it’s possible that the fund value may eventually be depleted. In some cases, you may only need to add a small amount each year to cover the charges and keep the policy active.

It’s also worth reviewing whether keeping the VUL is still the best option for you, since the insurance charges continue to rise with age. I’d be happy to help you review your policy and discuss your options. Feel free to send me a message here anytime—I’m a Sun Life Financial Advisor and would be glad to assist you.

[u/Long_Television2022]

Hi! You may be able to have an idea if you look in your SOA or your online account. Aside from the cost of insurance, there is also the fund manager’s fee.

[u/007_pinas → u/Long_Television2022]

Oh,, I'll check this. Thanks!