Single Pay VUL: Client Earned 200K in 6 Months from Her 1 Million One Time Investment


Last Updated on by Raymund Camat

My client was very happy as her investment last January 26, 2016 worth 1 Million pesos has now grown to 1,199,975.80 pesos as of July 21, 2016. (Disclaimer: Value of investment  changes every business day, may move up and down due to volatility, characteristic of equity investments). She invested her money in Sun Maxilink One, which is a single-pay, peso-denominated, protection and savings product that offers an opportunity for faster accumulation of fund value because it has no initial charges. It provides life insurance coverage (125% of Investment) to the insured PLUS the flexibility to choose where your money will be invested (equity fund, bond fund, balanced fund, index fund, growth fund, growth plus fund), depending on your risk appetite and financial objectives, to maximize your money’s earning potential.

maxilink one

In just 6 months, my client’s money has “paper gain” of almost 200,000 pesos. It is called “paper gain” as she did not yet withdraw the earning as of this time. If she have withdrawn the earning, the total “realized” earning would be 199,975.80 less 5% early withdrawal penalty & 0.6% VAT = 188,777 pesos. The 5% early withdrawal penalty is being charged if a client withdraws her money in less than 5 years; this withdrawal penalty decreases every year for 5 years and after 5 years no more charges imposed. The 0.6% VAT (computed as 12% of the 5% early withdrawal penalty) is mandated by the BIR.

Beating Time Deposit Rate

If my client invested her money in BDO time deposit for 6 months, her 1 Million pesos may have earned only 1% or 10,000 pesos less 20% withholding tax = 8,000 pesos. It would probably take more than a decade for her 1 Million pesos to earn the 188K pesos gain of her Sun Maxilink One investment. My client told me that she will not be needing the 1 Million pesos in the next 5 years so it would not be wise to put it in a time deposit account where the value of her money is being eaten by inflation (the decrease in the purchasing power of  peso).

The Growth Plus Fund

My client decided to put 100% of her money to Growth Plus fund, a fund that aims  to maximize returns through a combination of long-term capital growth and current income by investing in a portfolio of high-quality Philippine listed equity and equity-linked securities that yield dividends. Examples of high-quality Philippine listed equities are PLDT, SM Development Corporation, Ayala Land and BDO. These companies are stable and profitable.

   – Benefits of Investing in Growth Plus Fund

  • Better Possible Returns. Unlike traditional savings with fixed interest rates, investments in dividend-paying equity instruments provide higher potential earnings, as the dividends the Fund receives may augment stock price appreciation or serve to limit downside risk.
  • Professional Portfolio Management. Clients have Sun Life Financial’s investment experience, commitment and research capabilities working for them.
  • Liquidity. Growth PLUS Fund units can be redeemed on any business day (Subject to company guidelines.).
  • Diversification. Client’s investment is placed in a wide selection of dividend-paying stocks depending on the optimal number of stocks as required by the strategy, reducing over-all risk.
  • Active Fund Management. The fund adopts an Active Portfolio Management Strategy that gives flexibility for the Fund to swiftly reallocate assets within dividend-paying equity securities and be exposed to high-quality and financially-stable companies.
Growth Plus Fund allocation as of June 2016

Growth Plus Fund allocation as of June 2016

Estate Tax Avoidance

My client understands that when she die all her assets will be frozen by the government. Her beneficiaries need to pay estate tax (5-20%) to the BIR before they could transfer the assets to their hands. My client wanted her one million pesos not to be subjected with estate tax. I recommended to set her children as irrevocable beneficiaries so that her money will be received by his sons without estate tax once she died. This tax avoidance scheme is legal under the Insurance Code  of the Philippines. The only disadvantage of setting her children as irrevocable beneficiaries on her Sun Maxilink One plan is that she cannot withdraw her money without her children’s consent (signatures) because irrevocable beneficiaries are already considered “part owners” of the policy. Of course, my client doesn’t mind this disadvantage because she loves hers sons anyway.

Invest in Sun Maxilink One

You too can earn profit  the same with my client by investing with Sun Maxilink One. The lowest single pay investment is 250,000 pesos. No medical exam, health restrictions and age limit to apply for Sun Maxilink One (subject to company guidelines). Talk to a Sun Life advisor today and begin investing. You may contact me at 09179698062 or email me at

DISCLAIMER: The investment risks, including but not limited to credit risk, mark-to-market risk, taxation risk, regulatory risk, currency risk, interest risk, liquidity risk and default risk associated with this product are to be borne solely by the policy owner.

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Raymund F. Camat, CIS, REB, CWP®, CEPP® is a SEC-Certified Investment Solicitor (CIS), Certified Wealth Planner and Certified Estate Planner, Phils. He is also a licensed insurance and mutual fund advisor for Sun Life Financial. He wants to educate the Filipino public on the importance of financial planning, investment planning, wealth planning and estate planning. He offers Personal and Family Wealth Planning to Filipinos from different generations. He has a bachelor's degree from the University of the Philippines. You can reach him at 09179698062 (Globe/TM/ABS-CBN/Viber), 09392787408 (Smart/TalkNText/Sun Cellular), (02) 508-9025 (Landline) or email him at For OFWs, he also conduct online video consultation through Skype, Viber or FB Video Call. ________________________________________ DISCLAIMER: This website reflects only the views and opinions of Raymund F. Camat and is not part of any official communication tools of any life insurance and investment company. The views and opinions on this website do not necessarily reflect those of the company, the management, the advisors/agents and the employees of any life insurance or investment company.
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