[workoshore]

[learn2liv]

bilib talaga ko sayo workoshore!
ang sipag mo magsearch at mag-share dito sa forum  

salamat

[biluvby08]

hi! this is my first post in PMT. i was just about to inquire about the difference of VULs, MF, UITF... i know them by name but i dont understand it well in concept/ principle. thanks to workoshore!

[workoshore]

no problem mga forumers, ok lang, basta info para sa ating kapakanan yan, to help us in our decisions, to get out of the Rat Race...

@biluv, meron pa ibang thread specific sa VUL or UITF, back read ka lang doon para mas malinaw dahil marami na discussion doon eh...

cheers...

[danica00]

Who has investments in both VUL and MF? How do you compare both their performances?  

[mxherr5]

I have both Sunlife's balanced fund and flexilink.

Right now, lugi yung VUL ko because the insurance and
periodic charge is deducted from your units... so kung
mababa yung NAV ma rerealize mo yung lost(or gain)
unlike sa mutual fund na paper loss lang talaga
unless you redeem you shares.

[ahock]

setting aside lang muna ang VUL ha....

Question, both MF and UITF by concept same lang sila. They are open ended investment. Rules impose by SEC for MF and BSP for UITF are aomewhat the same. But between the 2 ano talaga ang best kung limited lang resources mo which you cant put both at the same time? Can you guys list the pros and cons? I have set aside sa VUL kasi kung ma differentiate naman natin these 2 karga na VUL...

PROS:
1. MF are somewhat adhere to corporate structure. May BoD, meetings with shareholder, vote on some issues.
2. UITF carries the name of the BANK.
3. Hirap transact sa MF since sa office ka talaga pupunta

CONS:
1. UITF rarely declare dividend but most MF are not as well

[Jonasan]

I have mutual funds only and a separate insurance account. Well, I think this is much better because you get to choose from your own pocket money.

[bauer]

sunlife mutual declared a stock dividend

[jithuizen]

what is VUL? how does it work?

[traxx_13]

@jithuizen : ang intindi ko sa VUL, insurance and MF(/UITF) in one. Heto yung iinvest yung pera mo sa kung san normally nag iinvest ang mga MFs pero kapag nadedz ka e mag aact like insurance yung current value ng money mo.

[traxx_13]

A requirement to pay in Philam Life's VUL is the A&H. Anybody here know how the amount is derived? Any formula or table that you can share?

[pogingpogi]

Mutual funds are regulated by SEC, UITFs are regulated by Bangko Sentral, VULs are regulated by the Insurance Commission. VULs have a slightly higher fee due to the insurance premium payment. But this premium is very low if you are at a very young age. I am 30 and I just pay 1 peso and 32 cents per 1000 pesos on my insurance, which means i only pay 132 pesos for the Insurance if i invest 100k. Allocating 132 pesos from my 100k for protection and tax benefits is definitely something that I am willing to do. You get life insurance with a minimum death benefit and estate tax exemption for only 132 pesos, where else can you find something like that? Let me give you an illustrative example:

Mr. X invested 1 million on a Mutual Fund and the current value of the fund is 1.5 million.

Mr. X died, so his next of kin receives 1.5 million minus estate tax of approximately 20%. So the total fund transferred to his next of kin is 1.2 million (300k goes to BIR).

computation for estate transfer:
estate = current fund value - (current fund value x 0.2)
estate = 1.5M - (1.5 x 0.2) = 1.2M

Mr. Y invested 1 million on a VUL and the current value of the fund is 1.5 million.

Mr. Y died so his next of kin receives 2.75 million since the death benefit is 125% of the initial investment plust the current value of the fund, WIHTOUT the estate tax.

computation for estate transfer:
estate = 125% of principal + current fund value
estate = 1M x 1.25 + 1.5M = 2.75M


Always remember that when you die, BIR will get part of your estate before you can transfer your wealth to your next of kin. VUL solves this problem, and adds more cash to your estate on top of that. With mutual funds and UITFs, you need to purchase a separate insurance policy, which is more expensive since you only have to pay much less than 1% (depende sa age at underwriting) to get covered in VUL.

One of the rules of Francisco Colayco: Always protect your greatest asset, which is YOUSELF.

[georgepeen]

ayus to!
I like reading this kind of articles...
I myself have few mutual funds linked to my insurance. Guess this is the way it should be

[allanmm13]

I am 30 and I just pay 1 peso and 32 cents per 1000 pesos on my insurance, which means i only pay 132 pesos for the Insurance if i invest 100k. Allocating 132 pesos from my 100k for protection and tax benefits is definitely something that I am willing to do. You get life insurance with a minimum death benefit and estate tax exemption for only 132 pesos,

Is this 132pesos per month or per year? Usual norm for premium is 1% of the coverage not 0.1% (1.32/1000)

Mr. X invested 1 million on a Mutual Fund and the current value of the fund is 1.5 million.

Mr. X died, so his next of kin receives 1.5 million minus estate tax of approximately 20%. So the total fund transferred to his next of kin is 1.2 million (300k goes to BIR).

computation for estate transfer:
estate = current fund value - (current fund value x 0.2)
estate = 1.5M - (1.5 x 0.2) = 1.2M

Most of my bank accounts and MFs are co-share with my spouse, in event of either of us dies, the other have access without this expensive estate tax issues. I guess my separate term insurance will be there, in case if both of us dies together. This is probably the best thing i want to leave and emphasis with my wife, both of us are co-responsible for our finances.

Always remember that when you die, BIR will get part of your estate before you can transfer your wealth to your next of kin. VUL solves this problem, and adds more cash to your estate on top of that. With mutual funds and UITFs, you need to purchase a separate insurance policy, which is more expensive since you only have to pay much less than 1% (depende sa age at underwriting) to get covered in VUL.

You cannot put everything in VULs as one should select many basket of investment.

One of the rules of Francisco Colayco: Invest and Diversify
You may not know which will fall apart in your investment tool.

But anyway, for sake of example, this is a good point of yours