Here’s one of the best value for money Retirement Plan ( insurance + mutual fund) product from Sun Life – Sun Maxilink Prime. It’s an insurance with investment or commonly known as Variable Universal Life or Variable Unit-Linked Insurance (VUL).
Basically, it’s a Term Insurance + Mutual funds combined into one product. In essence, it follows the “Buy Term, Invest the Difference” concept without the hassle of monitoring and doing the investments yourself.
Check the video of Pesos and Sense for a better understanding of VUL.
[Check Sun Maxilink Bright – 5 years to pay plan]
Sun Maxilink Prime
Sun MaxiLink Prime is a variable life insurance plan that provides financial protection PLUS a potential source of savings that can fund future needs like retirement income through its investment earnings. There are 5 funds to choose from where your premium payments will be invested in. These funds are managed actively and prudently by our top-notch investment professionals. Sun MaxiLink Prime is payable for at least 10 years*.
* The premium paying period is not guaranteed. You may be required to pay additional premiums after 10 years if the fund value is insufficient to pay charges.
How Does Sun Maxilink Prime Works
As we mentioned, Sun Maxilink Prime is a combination of Term Insurance and Mutual Funds and it follows the concept of “Buy Term Invest the Difference Concept”. So in reality, part of the payment pays for the insurance, and part is invested in a mutual fund-like investment.
You can actually choose where the investment part should go. This will depend on your investment goal, risk profile and investment horizon. You can choose either Bonds, Equity, Balanced or any variation of MyFuture Funds (2020, 2025, 2030, 2035, 2040). And since this is at least 10 years paying plan, your investment goal must be at least 10 years also.
Which one should you choose? As with any investment goal, the higher the risk, the higher the returns. Bonds are less risky as it is invested in government securities. Equity Funds are invested in the stock market. Balanced Fund is a combination of bonds and equity, so the risk is moderate.
How Much is Sun Maxilink Prime?
The cost of Sun Maxilink Prime greatly depends on your desired insurance coverage and your current age. Normally, the quotation will reflect Benefit Amount. The death benefit is actually 200% of the benefit amount so for a P350,000 benefit amount, the insurance coverage is P700,000.
The minimum available plan for Sun Maxilink Prime is P350,000 benefit amount or an insurance coverage is P700,000. Meaning, in case of death of the insured, P700,000 will be the amount your beneficiaries will receive. How much is that? For a 20 year old male non smoker, that’s around P19,000 per year or something like P1,600 per month. For a 30 year old male, around P21,000- P22,000 per year or P1,800 per month.
Most likely, you’d want a bigger insurance coverage especially if you’re the breadwinner of the family or you have people depending on your income. Say you want a P2 Million insurance coverage, how much will that be?
Male 30 years old, non smoker with an insurance coverage of P2 Million – around P60,000 per year or P5,000 per month. Female 30 years old, non smoker – around P55,000 per year or P4,600 per month.
Sun Maxilink Prime Rates
* based on special rate for non-smokers, with riders Accidental Death Benefit and Total Disability Benefit, rounded off to the nearest thousand.
Solutions for 2 Problems
Since Sun Maxilink Prime is an insurance with investments, it actually solves 2 problems or life’s risks. One is “What if I die too young”? And the other one is “What if I live too long”?
Let’s make a sample proposal and see how it can be a solution to those 2 problems.
Juan (male, 30 years old, non smoker) getting an insurance coverage of P2 Million.
Payment is P5,000 monthly or P60,000 yearly for 10 years. Total payment in 10 years is P600,000.
“What if I die too young”? Problem
- In case of death (any time as long as the policy is in-forced), beneficiaries will get P2 Million.
- In case death is caused by accident, beneficiaries will receive a total of P3Million (additional 1Million)
- In case of total disablement while paying, payment is waived during that period
In a way, my income is replaced immediately by P2 Million. That way, my family can continuously live on the same lifestyle for a certain period of time.
“What if I live too long”? Problem
- If for example, I want to retire at age 50 (20 years after), the total fund value that I can withdraw can range from P1.39 Million (8%) to P1.86 Million (10%) or even more
- Or, in case I want to delay my retirement to age 65 (35 years after), the total fund value that I can withdraw can range from P4.19 Million (8%) to P7.54 Million (10%) or even more.
Of course, you want bigger retirement plan, you simply need to increase your monthly investments. Maybe you can afford to invest P10,000 a month or P15,000 a month? If you can, then more likely, your insurance coverage and retirement fund can also increase in value.
[ Is 10 years too long? Check Sun Maxilink Bright – 5 years to pay plan ]
Win win solution di ba? Walang sayang, walang tapon.
Get a FREE Sun Maxilink Prime Quotation NOW!
Interested? Request a FREE proposal now! But before you request for a proposal, you should know first How Much Life Insurance You Really Need – [read here].
Or in case you’d like to set an appointment, all you need to do is Contact Us at 0922 897 8077
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Garry Zaldy de Castro is an advocate, Financial Advisor, Certified Investment Solicitor (Mutual Fund Representative), investor, stock market trader, blogger, IT practitioner, husband to Aileen and a dad to Jacob Benedict. He started Financial Planning Philippines in 2008 just to share his financial learnings friends, relatives and anyone who wishes to be financially independent.