Insular Life

An investment linked product is a non-traditional life insurance plan.

It is a life insurance policy with an investment component linked to it. A portion of the premium is allocated to an investment or separate fund. It is a policy that provides for life insurance where the account value at any time varies according to the performance of the separate fund chosen by the policy owner.

What is a policyowner?

The owner of an investment linked policy is the policy owner. He is the party to the contract entitled to life insurance benefits and the fund value of his investment.

What are unit and unit price?

The policyowner's share in the separate fund represents a unit. A policyowner may have more than one unit.

The unit price is the value of the underlying assets of the separate fund divided by the number of units issued.

Will my beneficiaries get anything if something happens to me?

Yes, your beneficiaries will get whichever is higher of the fund value or the minimum guaranteed death benefit.

Is it possible to cancel my investment linked policy should I find it unsuitable to my needs?

Yes, it is possible to cancel your investment linked policy within the 15-day cooling off period. During the cooling off period, the policyowner can review the policy and should he decide that the policy is not suitable to his needs, the policy can be returned with the policy data page within 15 days from the date it was received and the company will refund the market value of the units including the initial and insurance charges.

What are Top-ups?

Top-ups are additional premiums you invest in your existing VUL policy. Subject to the company's approval and age limit, you can place this additional single premium payment/s anytime, while your policy is in force.

If the investment fund that I choose did not perform well can I transfer or switch to another fund?

Subject to company's approval, yes, you can transfer or switch to another fund as long as the policy is still in force. The minimum amount that you can switch out of a fund is Php10,000.00.

You will be granted four (4) free switch per policy year. A switching fee of 1% of the amount to be switched will be charged for additional switches. The switching fee is deducted from both funds according to the proportion of the fund's value to the total fund value at time of fund switching.

What happens if I plan to discontinue my policy?

You can apply for a full withdrawal of the funds once the policy has a withdrawal value if you plan to discontinue your policy. Depending on the product you availed, withdrawal charges may apply.

What is buying and selling of units and when can I buy and sell units?

Buying of units is also known as top-up or "fund switch to" while selling is withdrawal or "fund switch from".

Buying and selling is dependent on the time IL receives the policyowner's application.

Is it possible for me to withdraw part of my investment?

You can withdraw from any of your funds as long as your policy has a withdrawal value. Minimum withdrawal is Php10,000 and minimum balance after withdrawal is Php20,000.

* If your balance after partial withdrawal is less than the minimum required, you must fully withdraw your fund and your policy will be terminated. At present, no withdrawal fee is charged for full withdrawals. However, we may impose a withdrawal fee for full withdrawals at a later date.

How much earnings will I make from my investment linked policy? Are these guaranteed?

For illustration purposes, earnings are shown in 4%, 8%, and 10% per annum. The actual earnings will depend on the performance of the fund and the length of time it is being invested. And because the earnings shown are for illustration purposes only, these are NOT guaranteed.

Investment linked product is a non-traditional life insurance product, how does this differ from a traditional life insurance?

In traditional life insurance that consists of life and endowment products, Insular life decides on where to place the premium. But since our investment linked product is a non-traditional life insurance product, you, as the policyowner have the option in choosing where to invest your premiums. Investment risks are borne by the policyowner under an investment linked product. Under traditional life insurance, it is the company which bears the risk by paying the sum insured as stated in the policy regardless of the investment performance.

Can I trust Insular Life?

At Insular Life, we apply over a hundred years of experience in financial protection, savings and investments to help you make confident decisions for you and your loved ones. We recognize that financial priorities change over time — that is why we are here to help you plan ahead, through every step of the way.

As an Insular Life customer, you have the confidence of being protected by a company with a consolidated asset base of ₱129 billion; net worth of ₱40.3 billion; net income of ₱4.9 billion; revenues of ₱25 billion, and total life insurance business-in-force of ₱267.3 billion, as of yearend 2016.

We remain committed to serving the Filipino, as we spread the benefits of life insurance to every family. Thus, as you look ahead, be assured that Insular Life will guide you, as you advance from one life stage to the next.

Where can I get the unit price of my Insular Life VUL product?

This can be viewed in our website, www.insularlife.com.ph/products-services/vul-investment-funds-performance and is published every first Thursday of the month in the business section of the Philippine Star

Why should I invest in the Variable Unit Linked (VUL) products of Insular Life?

Unlike other investment vehicles, VUL products not only provide benefits for your needs while you are still alive. Equally important, these vehicles give benefits to your loved ones, if you are no longer around to finance their needs. This is why it is best known as a wealth protection product. You protect your family from the risk of financial loss by availing of an insurance plan that will provide funds upon the breadwinner’s demise.

For the living benefits that VULs can offer, best are those you will need in the long-term. Examples are wealth accumulation for education, health, and retirement funding.

Insular Life's VUL products can be invested in eight (8) peso-denominated funds and two (2) dollar-denominated funds so you’re sure to find one that fits your investment risk appetite.

Being a life insurance product, the living benefit (fund value) or the death benefit of VULs are not subject to garnishment; therefore, the investment placed by the policyowner and the earnings and proceeds from his investment are protected from creditors.

Based on recent competitive studies and research, Insular Life has one of the lowest fees and charges (including insurance charges) on a VUL product.

How much is the premium to invest in an Insular Life VUL product?

For as much as P150/day, you can already avail yourself of a VUL policy from Insular Life.

Are there charges to be deducted from my premium on a VUL policy?

Similar to other investment vehicles, yes, there are charges and expenses to be deducted from your VUL policy. These are as follows:

1. Insurance Charges

2. Acquisition and Administration Charges

3. Asset management fee

4. Accounting charge

What are riders?

Insurance policy riders are additional layers of protection available for an additional cost. You get a rider when you want a benefit that your basic policy may not cover. When we acquire something, we usually want to customize it according to our own needs. Riders are add-on benefits that can personalize your insurance coverage.

• Disability Waiver of Premium (WP) – premiums are waived upon insured’s total and permanent disability

• Payor’s Rider (PR) – in the event of the payor-owner’s death or disability, premiums due will be waived

• Accidental Death Benefits – provides an additional benefit equivalent to the face amount of the policy if the insured dies due to an accident.

• Dread Disease Rider (DDR) – Pays a lump sum if you are diagnosed with a serious condition / critical illness.

• Hospitalization Rider (HR) – provided daily hospitalization allowance if the insured is hospitalized as a result of an injury or sickness. The amount can be used to partially pay for room and board upon confinement.

Note that not all riders may be acceptable to your insurance policy. To find out if your desired rider can be attached, seek the assistance of your Insular Life Financial Adviser.

What are the available funds to choose from?

Insular Life's VUL products may be placed in any of the following funds depending on your investment objective and risk appetite:

Peso-denominated Funds

Equity Fund - seeks to provide an individual with long-term total return and capital appreciation by investing in dividend paying shares of local companies, across all sectors of the market listed in the Philippine Stock Exchange, as a representation of the domestic economy.

Growth Fund - seeks to provide an individual with a vehicle for long-term growth and capital appreciation by targeting companies in specific sectors listed in the Philippine Stock Exchange, with the potential to outperform the domestic economy.

Select Equities Fund - seeks to provide long-term portfolio growth and capital appreciation by primarily investing in ten (10) of the most liquid and well-capitalized dividend paying stocks listed in the Philippine Stock Exchange.

Guardian Fund - an actively managed fund that seeks to provide long-term portfolio growth and capital appreciation by initially investing in ten (10) companies deemed to be the next set of the most liquid and well-capitalized dividend paying stocks listed in the Philippine Stock Exchange.

Balanced Fund - invests in government securities, bonds issued by, and term loans extended to, prime Philippine corporations, and short-term money market instruments, and in prime rated stocks that are listed in the Philippine Stock Exchange.

Fixed Income Fund - seeks to provide long-term capital preservation from stable and predictable interest payments. This Fund invests in bonds and notes issued by the Philippine government and prime-rated corporations and in short-term money market instruments.

Money Market Fund - seeks to provide policyholders with a parking facility to invest their excess funds in a diversified portfolio of highly liquid and less volatile investment securities that aim to preserve the principal invested and at the same time deliver yields relatively higher than the regular saving rate.

Dollar-denominated Funds

Peso Global Equity Fund - seeks to achieve long-term growth and capital appreciation by investing majority of its assets in instruments with principal exposure in income producing equity securities in markets throughout the world.

Dollar Fixed Income Fund - seeks to achieve capital appreciation in US dollar terms over a medium to long-term period by investing in a diversified portfolio of US dollar denominated fixed income instruments issued mainly by the Philippine government and prime corporations.

Dollar Money Market Fund - seek to provide policyholders with a parking facility to invest their excess dollar funds in a diversified portfolio of highly liquid and less volatile investment securities that aim to preserve the principal invested and at the same time deliver yields relatively higher than the regular saving rate.

Frequently Asked Questions