Mrs. AJF

15/10/2025

One Advantage of VUL Over Term Insurance — SUSTAINABILITY.
One major advantage of a Variable Universal Life (VUL) insurance over Term Insurance is its built-in sustainability — the ability to keep your coverage active even when premium payments temporarily stop.
With Term Insurance, your protection depends entirely on continuous premium payment. Once you miss even a single month’s payment, the policy immediately lapses, and your coverage ends. There’s no accumulated fund value to sustain it, and all previously paid premiums are forfeited.
With a VUL, however, part of your premium is invested, creating a fund value. This fund value serves as a safety net that can automatically pay for the policy’s charges when you can’t continue paying. As long as there’s sufficient fund value left, the policy remains in force, even without new premium payments.
Now, if you focus only on affordability and the premium-to-coverage ratio, Term Insurance easily wins. You get higher coverage for a much lower cost. But that affordability comes with a tradeoff — sustainability. Once you miss a payment, 30 days later, the policy lapses, and the coverage stops. Reinstatement may also require proof of good health — something not everyone can easily provide, especially in their later years.
So even if you’ve diligently paid for your Term Insurance for the past 20 years, if it lapses on the 21st, your policy still terminates — along with all the protection you’ve built.
This is where a VUL becomes advantageous. It offers both protection and flexibility, with its fund value acting as a buffer that helps sustain the policy for some time even when you’re unable to pay.
In short:
• Term Insurance: “Pay or lose coverage.”
• VUL: “Stay covered as long as your fund value can sustain the policy.”
That’s the value of having an insurance plan designed not just to protect, but also to adapt.
And yes — the Buy Term, Invest the Difference (B.T.I.D.) strategy works for those who are financially disciplined, investment-savvy, and diligent enough to monitor both their investments and their insurance payments. It’s a sound strategy for many — but not for everyone.

07/08/2025

May mga nag-message sa akin regarding this. So i-explain ko lang without bias ah. I have friends and followers from AXA, mind you.
(1) Since “10 years” at “investment” were mentioned, obviously 10 “years to pay” na V.U.L. ‘to. I don’t know exactly what the product name is lang.
(2) Hindi ko alam kung pa’no ito prinesent ni agent sa client. But there’s a high probability that it was presented in a way that it appeared to the client that it was an investment product na may “kasamang” insurance. Hindi nabigyan ng emphasis na ito ay INSURANCE PRODUCT NA MAY INVESTMENT COMPONENT at yung insurance nito has its corresponding cost. Either this happened intentionally or unintentionally, I don’t know.
This is kinda sketchy ah, since too good to be true naman na maituturing na may makukuha tayong libreng insurance dahil naglagay o nag-invest lang tayo ng pera. May cost syempre ang insurance, may bayad. That’s just how the business works. Bale yung hinulog natin, babawasan pa yun for the cost or charges. At ang investment component nito ay yung tira lang ng hinulog natin. It could be a misunderstanding by the client, or misrepresentation by the agent. Again, I don’t know. Sobrang mali na i-blame natin lahat kay AXA o sa kung aling insurance company ang may ganitong issue. Legit ang product. It was the way it was presented and/or perceived ang mali dito.
(3) With VUL, even with term insurance and whole life plans, lifetime talaga ang cost ng insurance na need bayaran. It’s either you pay for it real-time (Term Insurance) or real-time and ahead of time through cash format (Whole Life) or investment/unit format (V.U.L.).
(4) “Yung sinabi ng agents na increase in investment” — this is most likely based on the fund value projection na ina-assume either ng client or ng agent, or both, na nangyayari talaga in real life. Possible, but not guaranteed. And less likely especially during the non-paying years na panay charges nalang, wala nang new units added. The investment component of a V.U.L. is primarily to sustain the policy, being the source of payment for the insurance charges especially during the times when schedule premium isn’t paid or when it is already “fully paid”.
(5) “Lugi” in terms of what? The fund value not being more than the total premium paid? Again, we go back to the assumption na ang buong inihulog ay iniinvest, which is not the case. Only a portion of the premium is what makes up the fund value. You also have to include in the comparison equation the insurance coverage that you’re paying for. ‘Wag lang fund value versus total premium paid, instead, fund value + insurance coverages. Do the Math.
(6) Insured until age 100? That depends po ah, if the remaining fund value can sustain that long. Since no new units are coming in on policy year 11 onwards. Top-Ups may be required to sustain the policy.
Bottomline: Hindi budol ang AXA, hindi rin budol ang V.U.L. There was misunderstanding, misrepresentation, or both.
I don’t fully blame the agent, kasi pwedeng back then hindi rin sya naturuan ng lahat, like what needed emphasis, and what the possible problems will be by not doing such. I’m not saying he’s excused from the accountability as well. And of course, it’s very understandable that the client felt he was scammed kasi nga iba yung expectation nya sa reality. He has all the rights to feel that way, and has all the rights to complain.
So what can we learn from this moving forward?
As insurance advisors, alamin natin ang lahat about the product, as much as we can. And most important is yung transparency — ilatag natin ang ins and outs, pros and cons. Then regular policy review.
May this be a lesson for everyone, especially insurance advisers.
AND FOR THE INSURANCE COMPANIES? Problems like this don’t get fixed when you only hand the mic to those who make the numbers look good.

01/08/2025

14/07/2025

Yan! Para tumatak sa isipan, ‘di makalimutan. 🤣
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