Questions About MLM/Networking

**boybi** · October 13th, 2020 11:57 AM

Originally Posted by papi smith

Just buy any term insurance Sir, tapos ung excess money, buy mo stocks or UITF

Sorry, what exactly is term insurance? Yung 10yrs to pay na insurance ba yan?

**tarzegetakizerd** · October 13th, 2020 11:59 AM

Originally Posted by boybi

May example ka ng mga BTID insurance?

Hindi ko pala nadefine. Ang BTID means Buy Term, Invest Difference.

Kukuha ka ng term insurance (say PruTerm from PruLife) then ikaw mag-iinvest sa difference.

Let's say a VUL costs 3.5k per month (per inoffer sakin) for 15 years, my Term insurance costs 700 per month
(renewable yearly) at my current age for a coverage of 2.5 million. Dahil BTID ang napili ko, yung difference na 2.8k pwede ko ipasok sa investment vehicles (for example, PAGIBIG MP2 or FMETF, both averaging around 7% growth annually).

Once umabot ng above 2.5 million yung investments ko, tigil ko na pagbabayad ng term insurance, since kaya naman ng icover. Keep in mind lang na tumataas din ang cost ng term insurance depending on age. So dapat magrow talaga yung investment para di na kailangan ng insurance in the long run.

For VUL kasi, essentially term insurance din siya plus investment. Pero yung investment side mo will also pay for commissions, management fees, plus the insurance once your paying years have ended. Kung maabot ng investment yung optimistic target, then good, but if the finance manager underperforms, then it suffers.

**tarzegetakizerd** · October 13th, 2020 12:02 PM

Originally Posted by boybi

Sorry, what exactly is term insurance? Yung 10yrs to pay na insurance ba yan?

Term insurance is the most basic form of insurance. Bayad ka ng premium, Insured ka for a certain duration. Walang investment portion. Parang comprehensive insurance sa kotse

Examples are PruLife PruTerm series, PhilAm Life Protect, and SunLife Life Assure.

**boybi** · October 13th, 2020 12:04 PM

Originally Posted by tarzegetakizerd

Hindi ko pala nadefine. Ang BTID means Buy Term, Invest Difference.

Kukuha ka ng term insurance (say PruTerm from PruLife) then ikaw mag-iinvest sa difference.

Let's say a VUL costs 3.5k per month (per inoffer sakin) for 15 years, my Term insurance costs 700 per month
(renewable yearly) at my current age for a coverage of 2.5 million. Dahil BTID ang napili ko, yung difference na 2.8k pwede ko ipasok sa investment vehicles (for example, PAGIBIG MP2 or FMETF, both averaging around 7% growth annually).

Once umabot ng above 2.5 million yung investments ko, tigil ko na pagbabayad ng term insurance, since kaya naman ng icover. Keep in mind lang na tumataas din ang cost ng term insurance depending on age. So dapat magrow talaga yung investment para di na kailangan ng insurance in the long run.

For VUL kasi, essentially term insurance din siya plus investment. Pero yung investment side mo will also pay for commissions, management fees, plus the insurance once your paying years have ended. Kung maabot ng investment yung optimistic target, then good, but if the finance manager underperforms, then it suffers.

So for people na gusto invest and forget, better na ang VUL?

**tarzegetakizerd** · October 13th, 2020 12:16 PM

Originally Posted by boybi

So for people na gusto invest and forget, better na ang VUL?

For me, no. Insurance is not investment, and it must be segregated. May chance na hindi lumago yung pera mo, so you'll just end up with the coverage amount of your insurance. I've heard they can also ask for top-ups (added premiums) in case kulang yung fund ng investment mo para ituloy yung insurance mo.

There are other ways to invest without exerting the efforts required for say trading stocks, etc. examples are PAGIBIG MP2 (which you can drop a lump sum, wait for 5 years, then re-invest) or FMETF (recommended for long term).

That is just for me. I can say na hindi naman masama talaga yung VUL, but don't put a huge sum there. There are other ways to invest with less effort. I am not an investment guru, since hindi rin ako risk taker, but VUL does not appeal to me due to the reasons I've stated

Let's wait for the opinions of others. They may have other points na hindi ko naexplore regarding VUL and BTID.

**boybi** · October 13th, 2020 12:23 PM

7% average yearly dividend sa PAGIBIG.

I have investments with an insurance company, which for the past 10yrs gave earnings at an average of 10% per yr. Yung mga first placements ko 12yrs ago, nag double in just 7 or 8yrs.

**tarzegetakizerd** · October 13th, 2020 12:42 PM

Originally Posted by boybi

7% average yearly dividend sa PAGIBIG.

I have investments with an insurance company, which for the past 10yrs gave earnings at an average of 10% per yr. Yung mga first placements ko 12yrs ago, nag double in just 7 or 8yrs.

I can't comment on policies na medyo matagal na since hindi ako aware on how those work, e.g. commissions of agents, management fees, etc. What we've used during our discussions were current products of Insurance companies.

Of course, BTID works better for those who are aggressive in investing. The higher the effort you give, the higher the returns. The higher the returns promised, the higher the risk.

Pero ang mas natutunan ko regarding investment is to diversify. Para kung sakaling di magwork yung isang investment, or it goes under, the other investment vehicles will cover for that loss.

Then again, I'm not an expert, so I'd like to hear from others who have experience in both.

**ray_noel** · October 13th, 2020 03:31 PM

Upon reading sa mga posts dito... parang nalungkot akonsa pinasok na life insurance+investment...

Sabi ko kasi if i can pay monthly sa car why not put 10k per month for 10years sa life insurance as INVESTMENT....

Been paying for 5years now, and 5years left until i can take the lumpsum... pero im thinking na sa retirement ko na lang kukunin yun... sana i did not make a mistake sa life insurance na pinasok ko... at the end pag mamatay man hindi rin ako makikinabang...

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**dr. d** · October 13th, 2020 06:58 PM

let us not forget, that an investment can lose, as well as gain.
read the contract details, folks.
if in doubt, ask.

**boybi** · October 13th, 2020 07:35 PM

Originally Posted by ray_noel

Upon reading sa mga posts dito... parang nalungkot akonsa pinasok na life insurance+investment...

Sabi ko kasi if i can pay monthly sa car why not put 10k per month for 10years sa life insurance as INVESTMENT....

Been paying for 5years now, and 5years left until i can take the lumpsum... pero im thinking na sa retirement ko na lang kukunin yun... sana i did not make a mistake sa life insurance na pinasok ko... at the end pag mamatay man hindi rin ako makikinabang...

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Life insurance is like saving for your family.