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Financial Objectives:
> Educational and Health needs - medicine and tuition.
> Finer Things in Life - travel and other luxuries when you retire.
> Family Protection - assurance for family when you die that they will
be provided.
*In short, it is not enough to invest in banks due to low interest rates and low yields.
It would be better to invest in financial instruments/assets with higher potential
returns. VUL is the key to achieving these financial objectives.
U - Universal
> Refers to flexibility of VUL policy wherein, guaranteed cash values and
dividends of traditional policies are replaced with fund value that varies
depending on invested money and investment fund’s performance.
> Premium payments and death benefits are flexible; this would mean
policy owner could either pay higher or lower premium payments and
decide whether policy is insurance-based or investment-based.
L - Life Insurance
>Addresses life insurance concerns
- Provide for family when policy owner dies.
- Covers death, sickness, and other related costs.
- Provide future need for money for living too long.
- Face amount will be payed in the event of death before maturity date.
> Premium Charge (Initial Charge for single pay premiums or top-ups):
This is deducted from premium payment, percentage is deducted from
premium payment; take note this varies for each company, whether
regular or single. Both are still deducted, whatever the case.
Solely used to cover administering and operating expenses used by
company to maintain policy.
Change Fund Allocation: Change how premiums paid are allocated into
the funds
Case 2: Transfer earning equally among bond and equity.