Sun Life Financial’s Sun Flexilink is a life insurance product with an investment component just like Sun Maxilink Prime which me and my wife availed to serve as financial protection for our family when any of us die and to save and invest money for our retirement, child’s education and future expenses. It is a financial protector in the sense that when I die, Sun Life Financial will give money to my family to replace my income that would be lost the moment I die. That’s the importance of life insurance, protecting my family from financial disasters brought about by death. It is an investment plan in the sense that portion of my payment or premium will be invested into a pooled fund (mutual fund) and will be managed by top notch Sun Life investment managers. The goal of these investment managers is to make my money grow in time so that I will have something to use for retirement, child education and other financial needs. All I have to do is to regularly pay my premium, add more money into it and watch my investment grow over time.
With Sun FlexiLink, you don’t need to die to make your family enjoy the proceeds of your life insurance because you and your family can enjoy it while you are still alive. You can enjoy the investment component of this insurance while you are still alive. You can withdraw from your investment fund if you need it. You want to use it to fund your dream travel? Well, you have the freedom to do it. You waited so long for your investment to grow so you deserve to enjoy it in whatever way you want. You may have heard from other people that life insurance is all about dying, well they are so wrong, it is also about living — you live to enjoy your investment while being able to protect your family through life insurance.
Sun FlexiLink is good financial tool for retirement. Think about this: out of 100 Filipinos who retire, 45 still depend on their relatives, 30 count on charity, while 22 can’t stop working in order to support themselves. Do you want to be counted with this 97% of the retiree population who did not properly plan their retirement? Or do you want to be among the other 3% who did their retirement planning the right way. With Sun Flexilink, you are required to save in a minimum of 10 years to build a retirement fund that will give you comfortable and decent retirement life in the future. You don’t want to be a pasanin for your children or relatives when you are old already, right? So as early as now, plan your retirement. You may say that you have SSS/GSIS already and you don’t need another retirement plan. Well, ask a Filipino SSS retiree now how much she’s getting and if it is enough to cover monthly expenses. You will know the instant answer!
If you paid 20,000 pesos per semester when you were in college, don’t expect that your new born child will have the same tuition fee 18 years from now. You might be paying ten times this amount 18 years from now because every year colleges and universities increase their tuition and miscellaneous fees to as high as 15%. Invest now for your kids’ college education to prepare yourselves as parents with the rising cost of education in the Philippines. The good thing about Sun FlexiLink is that if you die, Sun Life will give lump sum amount to your family which could be used to finance the education of your children.
Sample Proposal: Sun Flexilink 10 Years To Pay
Raymund, 24, Male, Non-smoker
Face Amount: 1 Million Pesos – This is the monetary value in which benefits are based on.
-My family/beneficiaries will receive guaranteed 1 Million pesos (100% of Face Amount) from Sun Life of Canada Philippines Inc. if I die even if I already paid once. Death through accident, murder or natural causes is payable in this life insurance plan. I just wish that my family will use this money wisely because I will not be in the world to remind them the right way to manage money. But I believe my wife is responsible enough to manage our money.
Accidental Death Benefit (ADB): 1 Million Pesos
-If I die due to accident, my family will receive additional 1 Million pesos (100% of face amount) in addition to the 1 Million basic death benefit for a total of 2 Million guaranteed death benefit if I die due to accident. This benefit is called a rider, which can be added to the basic plan. Although this rider is optional, I added it because I know I need it and it maximizes the basic plan. Getting this benefit by having another policy will be more expensive. My beneficiaries need to prove that the cause of death is accident so they can get this benefit; thus medical and police reports may be needed besides the death certificate.
Accidental Death, Dismemberment and Disablement Benefit (ADDD): 1 Million Pesos
This rider has the Accidental Death Benefit mentioned above but with Dismemberment and Disablement benefits. Death due to accident is payable with 1 Million Pesos. Dismemberment or loss of body parts due to accident is payable with up to 1 Million pesos depending on body parts lost. For example, if I get blind due to accident, I will receive 100% of the face amount or 1 Million pesos. If I become totally and permanently disabled, Sun Life will give me up to 1 Million pesos disablement benefit to be given in 10 years — so 100,000 pesos per year for 10 years.
Total Disability Benefit (TDB)
Another rider which will oblige Sun Life to pay the premium if I become totally disabled. If I am disabled, I cannot work already and may not earn money so this rider will protect me from not being able to pay my premium due to total disability. Although this plan is again optional, I added it because I believe it is important. Actually, I consider this a MUST have rider for every life insurance policy.
Critical Illness Benefit CIB): 500,000
This rider will provide lump sum amount (500K) if I will be diagnosed and treated with any of the total of 36 illnesses listed here. Among the critical illnesses covered are stroke, heart attack, cancer, paralysis, total blindness and kidney failure. If I die due to any of the covered critical illnesses, my family will still get the lump sum amount. Sun Life has a separate term insurance called Sun LifeAssure with the same benefits with the option of including accidental death benefit rider and total disability benefit rider. Learn more about Sun LifeAssure here. By the way, critical illness benefit is optional and the premium increase every 5 years. After 10 years of paying, the earning of the investment component of the plan will pay the premium for this rider and the other 2 riders discussed above. Update: As of November 16, 2015, the Critical Illness Coverage could be as high as 400% of the face amount. So if your face amount is 1Million, you could attach a critical illness rider from 500,000 to 4 Million pesos. This is to make Sun Life products become more competitive with the plans offered by competitors.
Another rider I can attach to Sun Flexilink is the Hospital Income Benefit (HIB) rider which gives me daily income when hospitalized. If I availed this rider, I can get up to 1000 pesos a day when hospitalized for a maximum of 1000 days. That is 1 Million pesos hospitalization income. It is just like a replacement of my daily salary when I get confined. The amount will be doubled to 2000/day if I will be confined in the ICU or be hospitalized due to acute heart attack, chronic liver disease, dissecting aortic aneurysm, end stage lung disease, end stage renal disease, invasive cancer, major organ transplant, multiple sclerosis, poliomyelitis, progressive muscular atrophy and stroke.
Part of my payment will be used to pay insurance charges or the cost of insurance and part of it will be invested in an investment fund of my choice. I can choose from equity fund, balanced fund, bond fund or money market fund. I personally chose equity fund because I want my money to be invested in locally listed (to the PSE) companies. Investing in the equity fund involves risk but gives higher potential return. If I retire at age 60, here are the projected fund value which I can withdraw to use as retirement fund:
At 8% Annual Fund Earning: 799,067 pesos
At 10% Annual Fund Earning: 2.476 Million pesos
These fund values are not fixed and not guaranteed as they depend on the actual performance of the fund you choose. They are just projections to give each policy holder an idea of how his/her money can potentially grow through the years.
For 10 years, I will pay 28,300 Pesos per year, a total of 283,000 Pesos. It is about 78 Pesos a day or 2,358 Pesos a month. I will consider Sun Flexilink as a regular savings plan but unlike my bank saving, it has bigger potential and more exciting. On top if this regular premium, I can also add more money into it that will be directly added to the fund value of the plan.
If you are a young professional, the best time to get a Sun Flexilink Plan is now! because if you are young, your insurance premium is lower compared to older people. Also, because you are still young, there is longer time for your investment to grow in value. Thirty to 40 years to retirement is such a long time for your investment to grow. If you are 40 something or 50 something, it is still not too late, you can still avail this plan. It is not too late to protect your family and build your retirement fund.
For Our Modern Heroes: OFWs
You can avail this plan if you are abroad, you need to be at least in the Philippines to sign the needed documents and also to be interviewed by your chosen Financial Advisor. Good news, previously we don’t offer critical illness, hospital income and disability riders/benefits to most OFWs, but now Sun Life open these wonderful benefits to OFWs with the exclusion of those working in African countries and war torn and politically unstable countries of Asia, Europe, and Latin America. This is a real good news to our dear OFWs working in the USA, Canada, UK, Saudi Arabia, UAE, Kuwait, China, Japan, India (cities), Malaysia, Vietnam, Indonesia, Taiwan, Singapore, South Korea, Bahrain, Italy, New Zealand, France, Germany, Hong Kong, Macau, Australia and other peaceful and politically stable countries.
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