VUL Advance 2 How VUL Works Reminders and Tips

VUL Advance 2 - How VUL Works,
Reminders and Tips
To review, the VUL is an investment-linked life insurance policy. It gives both protection and
a chance to grow money or savings over time. In essence, the VUL insurance policy
provides two primary benefits, namely, the death benefit and the living benefit. The VUL
has two designs, namely, the Regular Premium VUL, and the Single Premium VUL.
In this module, these two designs will be discussed in detail.
H ELP PAGE
Help Page
IN TR ODUCTION
Learning Objectives
R EGULAR PR EMIUM VUL
What is VUL?
How does the Regular Premium VUL Work?

Death Bene t and Living Bene t
Regular Premium VUL Recap
Regular Premium VUL Product Variants
Sample Regular Premium VUL Product and Applicable Charges
Knowledge Check
SIN GLE PR EMIUM VUL
How does the Single Premium VUL Work?
Death Bene t and Living Bene t
Single Premium VUL Recap
Single Premium VUL Product Variants
Sample Single Premium VUL Product and Applicable Charges
Knowledge Check
R EMIN DER S AN D TIPS (VIDEO)
Reminders and Tips
POST- PUR CH ASE CON CER N S OF CLIEN TS
Post-Purchase Concerns of Clients
SUMMAR Y
Summary
ACH IEVEMEN T B ADGE
Congratulations!
R ESOUR CES
Downloadable Handout
Lesson 1 of 20
Help Page
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found at the bottom of the page.
The Menu button on the upper left of the corner of the screen allows you to jump to any page.
This icon indicates a clickable link to additional content.
Click on the Play icon to listen while you read through the lessons.
Next: Learning Objective
This is what you will be able to do after completing this module.
LEARN MORE
Lesson 2 of 20
Learning Objectives
By the end of this module, you will be able to:
Explain Variable Unit-Linked (VUL)

Insurance as a product and as a solution
for clients, by understanding their
financial needs
Differentiate the features and benefits of
the Regular Premium VUL and Single
Premium VUL
Understand post-purchase concerns of
clients
Next: What is VUL?
Let's discuss VUL.
LEARN MORE
Lesson 3 of 20
What is VUL?
Variable Unit-Linked (VUL) is an investment-
linked life insurance plan that provides
protection and the opportunity to grow
savings over time.
 The insurance protection in VUL, by default, is the death benefit coverage.
However, the insurance protection can be expanded to cover additional RISKS
such as accident, hospitalization and critical illness via the health and accident
riders.
VUL is both protection (insurance) and accumulation (savings/fund value).
Flip the cards below to learn more.
Pays out a minimum

guaranteed amount of
insurance coverage in
case of Insured’s death*
*Amount of coverage or
death benefit varies
between Regular &
Accumulates a variable
& non-guaranteed
amount that is linked
to the investment
fund/s chosen by the
client
Complete the content above before moving on.
What is VUL?
Click the previous (left) and next (right) arrows.
The foundation of the VUL is an insurance policy attached to an

investment.
(Source: A Client's Guide to VUL)

VUL gives both protection and a chance to grow your money (or
savings) over time.
In essence, the plan gives you 2 primary benefits:
1. DEATH BENEFIT
2. LIVING BENEFIT

VUL has two designs:
1. REGULAR PREMIUM - The policy owner may pay the

premiums either quarterly, semi- annually, or yearly.
2. SINGLE PREMIUM - The policy owner may pay the

premium one time.
The Regular Premium VUL and Single Premium VUL will be discussed in greater detail in the
next modules.
Next: Sun Life's VUL Products
The master blueprint of Sun Life's VUL products will be discussed next.
LEARN MORE
Lesson 4 of 20
The premium for VUL varies according to plan type or design. We have regular premium where the
payment is done yearly, semi-annually or quarterly (by interval). We also have one-time only
or single premium which is available in single premium VUL. If you have extra money and you plan to
pay more to generate more fund units, you can do excess premium (or top-ups).
Here is the Client's Guide to the Regular Premium VUL. Let's understand how premiums are allocated.
REGULAR PREMIUM VUL
In the Regular Premium VUL, upon paying the PREMIUM, the scheduled
PREMIUM CHARGE will be applied. The premium charge is used for the
administrative expenses and setting up of the policy or acquisition expenses
and it varies according to the type of product bought by the client.
Once the premium charge is applied and deducted from the premium, the
BALANCE AMOUNT will be allocated to the fund to buy units in your chosen
fund. The FUND UNITS are determined by dividing the amount allocated to the
fund by the applicable NAVPU (or Net Asset Value per Unit)
Once the FUND UNITS are created, the INSURANCE CHARGE will be applied
and will take care of the client's insurance protection. It is deducted monthly
from the Fund Value through cancellation of units. The Insurance Charge
varies by age, gender, smoking habits and risk class of the insured.
Another charge that is applied is the PERIODIC CHARGE which represents the
cost of maintaining and administering the policy. It is also deducted monthly
from the Fund Value through cancellation of units Periodic charge also varies
according to the type of product bought by the client.
Note that the Insurance Charge and Periodic Charges are deducted monthly
from the fund value regardless whether the client makes a payment or not,
while the premium charge is deducted from the amount being paid, only
when there is a payment made, subject to the premium charge schedule of
the plan.
The REMAINING FUND UNITS are then multiplied by the applicable NAVPU to
determine your policy’s Fund Value at any given time.
VUL Infographics diagram vFINAL_REGULAR.jpg

3 MB
C O NT I NU E
Next: Death Benefit and Living Benefit

The death benefit and living benefit will be discussed next.
LEARN MORE
Lesson 5 of 20
Death Benefit and Living Benefit
The Death Benefit and Living Benefit will be discussed in detail.
Regular Premium VUL: Death Benefit

 For Regular Premium VUL (Limited-Pay) , the death benefit is the higher of the
two.
Letter (B) above or the minimum death benefit is mandated by the Insurance
Commission and it aims to protect the cash layout of the client.
If we breakdown the components of Letter (B), we have the following:
- 500% of regular premium: this is fixed and known at the onset of the
policy. For the mentioned products, 500% of the regular premium is usually
higher than 200% of face amount except for some cases such as when the
insured is substandard and has a high mortality rating or when there is a rider
with high premiums attached to the policy. Remember that extra premium and
rider premiums are components of the regular premium. Thus, if the client is
standard and no rider is attached to the policy, 500% of the regular premium is
lower than 200% of the face amount.
- 125% of excess premium: this is variable and depends on the actual

behavior of the client
- 125% of partial withdrawal: this is also variable and depends on the actual
behavior of the client
Some possible scenarios when (B) could be higher than (A):
(1) Very high mortality rating since this leads to higher regular premium which
is a factor in computing (B) and lowers the fund value, which is a component of
(A), because high mortality rating leads to higher cost of insurance being
deducted from the fund
(2) High Excess Premium payment but very low fund value despite having no
withdrawal which may be due to market downturn
(3) Rider with expensive premium (probably because rider is rated or because
of high rider face amount) attached to the policy
Basically, if the client is standard, no rider is attached to the policy and no

excess premium payment or withdrawal is made, 200% of the face amount plus
fund value is usually higher.
C O NT I NU E
Computation Scenario
Computation of Death Benefit using Sun MaxiLink 100 Regular Premium VUL.
(If you are on a slow internet connection, this section may take a few moments to load. Thank
you for your patience.)

Regular Premium VUL: Living Benefit

What triggers a client to withdraw his fund

value?
These withdrawals are

made when:
The target date of
your GOAL &
DREAM has arrived
Child t ll
These withdrawals are

made to:
Augment your cash

flow for emergency
needs
Enjoy the GAINS
 REMINDER: Any withdrawals made from the policy will consequently

decrease the fund value and may cause the policy to lapse since monthly
charges are also being deducted from the fund.
 The turnaround time of Fund Withdrawal is
5 working days (Metro Manila)
7 working days (Provincial)
Basis of NAVPU = price next day/forward pricing
Any withdrawals made from the policy will consequently decrease the fund
value and may cause the policy to lapse since monthly charges are also being
deducted from the fund.
Click the hotspots to learn more.


Request Details
If the client plans to do a fund withdrawal from his VUL plan, he or she can do so by
using the Request for Fund Withdrawal form. In section 2 or Request Details, the
client may opt to indicate the exact amount to be withdrawn or he or she can also
indicate in the special instruction portion the number of units to be cancelled or
which fund to use for withdrawal.
Click the PDF document to download the Request for Fund Withdrawal.
Request for Fund Withdrawal.pdf

65.6 KB
Here is the sample fund withdrawal computation for FULL WITHDRAWAL.
5 working days (Metro Manila )
Here is the sample fund withdrawal computation for PARTIAL WITHDRAWAL.

Next: Regular Premium VUL Recap
To recap the Regular Premium VUL, the next topics are Applicable Charges and Net Amount at
Risk.
LEARN MORE
Lesson 6 of 20
Regular Premium VUL Recap
Premium Charge: is imposed for the basic premium only excluding any extra premium.
It represents the cost associated with the policy’s sales transaction such as setting up of the policy,
including expenses incurred by the company.
Note: Charges may be changed by the Company subject to approval of the

Insurance Commission.
Monthly Periodic Charge: is imposed for the basic premium only. It represents the cost of
maintaining and administering the policy.
Insurance Charge: is imposed monthly in respect of the basic benefit to cover the mortality cost. This
serves as a payment for the insurance protection the plan provides.
It is deducted monthly from the Fund Value through cancellation of units. The Insurance Charge
Rider Premiums are also included in the Insurance Charge.

Click the PDF document to download the Regular Premium VUL Recap.
Regular Premium VUL Recap.pdf

1.7 MB
C O NT I NU E
For the Net Amount at Risk, let’s recall the discussion of death
benefit earlier. In this example,
we first need to evaluate the death benefit payable. In the first
computation (Letter a), the first formula is 200% of the Face
Amount plus the Fund Value which gives us a total of Ps.
1,712,611 death benefit. In the second computation (Letter b),
the minimum death benefit is computed
as follows: 500% of the Regular Premium plus 125% of all Excess
Premium, if any less 125%
of Each Partial Withdrawal, if any. Adding everything, we will
arrive at Ps. 113,950.
Comparing these 2 computations, the death benefit will be the
higher of the two.

Second, we need to evaluate the net amount at risk. 200% of
the Face Amount plus the Fund Value less Fund value. Ps.
1,000,000 plus Ps. 712,611 less Ps. 712,611 pesos gives us a
total
of 1,000,000 which is the applicable NAR to compute COI.
In this example, we first need to evaluate the death benefit
payable. In the first computation (Letter a), the first formula is
200% Face Amount plus the Fund Value which gives us a total
of Ps. 1,700,000 death benefit. In the second computation (Letter
b), the minimum death benefit is computed as follows: 500% of
the Regular Premium plus 125% of all Excess Premium, if any
less 125% of Each Partial Withdrawal, if any. Adding everything,
we will arrive at Ps. 1,988,950. Comparing these 2 computations,
the death benefit will be the higher of the two.
Second, we need to evaluate the net amount at risk. The

formula is 500% of the Annual Regular Premium plus 125% of all
Excess Premium less 125% of Each Partial Withdrawal less Fund
Value. Adding everything we will arrive at Ps. 1,288,950 which is
the applicable NAR to compute COI.
C O NT I NU E
Next: Regular Premium VUL Product Variants

What are the product variants of Sun Life's Regular Premium VUL?
LEARN MORE
Lesson 7 of 20
Regular Premium VUL Product Variants
Review some of the product variants of Sun Life's Regular Premium VUL.

Note: Premium Holiday is a VUL feature of Regular Premium VUL
which allows the advisor to tailor fit the financial need and
product solution of the client based on his financial requirements
(number of years, target FV, age, amount etc). Under premium
holiday, client may also opt to suspend payments of regular and
excess premium, if any. The proposal system may project
fund values assuming premium holiday after certain number of
years of payment
Note: Premium Holiday is a VUL feature of Regular Premium VUL
which allows the advisor to tailor fit the financial need and
product solution of the client based on his financial requirements
(number of years, target FV, age, amount etc). Under premium
holiday, client may also opt to suspend payments of regular and
excess premium, if any. The proposal system may project
fund values assuming premium holiday after certain number of
years of payment

Click the PDF document to download the Regular Premium VUL Product Variants.
Regular Premium VUL Product Variants.pdf

4.8 MB
Premium Holiday Options
Now, we will further discuss what Premium Holiday is and its different options. Watch the video below
to know more.
Next: Sample Regular Premium VUL Product and Applicable Charges

The simulation will be based on the scenario of Juan dela Cruz, a 30-year-old male client with
a Sun MaxiLink 100 VUL policy.
LEARN MORE
Lesson 8 of 20
Sample Regular Premium VUL Product and

Applicable Charges
Identify the charges of the product.
Click the PDF document to learn about the Cost of Insurance (COI) Rates.
Cost of Insurance Rates.pdf

122.3 KB
C O NT I NU E
For this sample illustration, the sample Regular Premium VUL product is the Sun MaxiLink 100.
Here are the client's details:
This is the Regular Premium VUL proposal.

Take a look at all of the Charges.
Look at the Charges for the end of Year 1.
C O NT I NU E

Meet John, the client
At a Glance: Regular VUL Death Benefit and Living Benefit
For John's Regular Premium VUL policy, here are the

Death Benefit and Living Benefit at a glance.
 *For this particular sample product (Sun MaxiLink 100), the periodic charge will
be deducted from the fund from 2nd to the 10th policy year.
**The values above are computed assuming annual premiums are paid
regularly and no withdrawals have been made. It is based on 4% projected
return which is subject to change and is not guaranteed by Sun Life. Projected
values are net of all current charges.
Next: Knowledge Check

Review what you've learned.
LEARN MORE
Lesson 9 of 20
Knowledge Check
Ready to show what you know? Choose the best answer for each question.
Question
01/05
It is deducted from the premium each time a payment (regular or excess premiums) is
made. It is used to cover distribution and administrative expenses. It is a percentage of
the premium and diminishes after a few years.
Insurance Charge
Premium Charge
Net Amount at Risk
Interest Charge
Question
02/05
What is the minimum death benefit of Regular Premium VUL?
Face Amount + Fund Value
Face Amount + the Single Premium + 125% of the all Excess

Premium less 125% of each Partial Withdrawal
500% of the Regular Premium plus 125% of all Excess Premiums, if

any, less 125% of each Partial Withdrawal, if any
500% of the Regular Premium less 125% of each Partial Withdrawal

Question
03/05
How do you compute the Policy’s Fund Value?
Total Number of Units x NAVPU
Cash Value + Accumulated Dividends
500% of Regular Premium
Regular Premium + All Excess Premiums paid

Question
04/05
It is the amount that the company bears in case of death of the insured. This differs in
the Regular Premium VUL from that of the Single Premium VUL.
Fund Withdrawals
Cash Surrender Value
Accumulated Endowment Benefit
Net Amount at Risk

Question
05/05
It is imposed monthly with respect to the basic benefit to cover the mortality cost. This
Periodic Charge
Insurance Charge
Back-end Load
Premium Charge
Lesson 10 of 20
Aside from the Regular Premium VUL that was discussed, there is also the Single Premium VUL.
If the client has extra money, and he or she plans to pay more to generate more fund units, then he
or she can do excess premium or top ups.
Here is the Client's Guide to the Single Premium VUL. This also discusses how premiums are
allocated.
SINGLE PREMIUM VUL
In the Single Premium VUL, upon paying the PREMIUM, the scheduled
PREMIUM CHARGE will be applied. The premium charge is used for the
administrative expenses, setting up of the policy or acquisition expenses and it
varies according to the type of product bought by the client.
Once the premium charge is applied and deducted from the premium, the
BALANCE AMOUNT will be allocated to the fund to buy units in the chosen
fund. The FUND UNITS are determined by dividing the amount allocated to the
fund by the applicable NAVPU (or Net Asset Value per Unit)
Once the FUND UNITS are created, the INSURANCE CHARGE will be applied
and will take care of the client's insurance protection. It is deducted monthly
from the Fund Value through cancellation of units. The Insurance Charge
Note that the Insurance Charge is deducted monthly from the fund value
regardless whether the client makes a payment or not, while the premium
charge is deducted from the amount being paid, only when there is a payment
made, subject to the premium charge schedule of the plan.
The REMAINING FUND UNITS are then multiplied by the applicable NAVPU to
determine the client's policy’s Fund Value at any given time.
VUL Infographics diagram vFINAL_SINGLE.jpg

3 MB
C O NT I NU E
Next: Death Benefit and Living Benefit

The death benefit and living benefit will be discussed next.
LEARN MORE
Lesson 11 of 20
Death Benefit and Living Benefit
Single Premium VUL: Death Benefit

 •The term "accident" as used in this proposal, shall mean an unforeseen and
involuntary event, which causes a bodily injury independently of disease,
medical or surgical treatment.
•Death of the life insured from an accident must occur within one year from
the date of the accident and is NOT as a result of any of the following:
(a) homicide
(b) suicide
(c) poison, carbon monoxide or drug overdose
(d) self-inflicted firearm injury
(e) committing a criminal offense
(f) insurrection, civil commotion or hostile action of armed forces, whether

or not the life insured was actually participating therein.
C O NT I NU E
Computation Scenario
Computation of Death Benefit using Sun MaxiLink One Single Premium VUL.
C O NT I NU E
Single Premium VUL: Living Benefit

Here is a sample PARTIAL WITHDRAWAL using Sun MaxiLink One applying

the back-end load or charges.
5 working days (Metro Manila )
 REMINDER: Any withdrawals made from the policy will consequently decrease
the fund value and may cause the policy to lapse since monthly charges are
also being deducted from the fund.
Next: Single Premium VUL Recap

Applicable Charges and Net Amount at Risk will be discussed to recap the Single Premium
VUL.
LEARN MORE
Lesson 12 of 20
Single Premium VUL Recap
Premium Charge: It represents the cost associated with the policy’s sales transaction such as setting
up of the policy, including expenses incurred by the company.

Insurance Charge: is imposed monthly in respect of the basic benefit to cover the mortality cost. This
It is deducted monthly from the Fund Value through cancellation of units. The Insurance Charges
Rider Premiums are also included in the Insurance Charge.
Click the PDF document to download the Single Premium VUL Recap.
Single Premium VUL Recap.pdf

1.6 MB
C O NT I NU E
In this example, we first need to evaluate the death benefit
payable. In the first computation (Letter A), the first formula is
the Face Amount plus Single Premium less 125% of Each Partial
Withdrawal which gives us a total of Ps. 1,250,000 death benefit.
In the second computation (Letter B), the policy’s fund value is
equal to Ps. 1,120,181. Letter A is the death benefit since
it is higher than B.

formula is Face Amount plus the single premium less 125% of
each Partial Withdrawal less Fund Value which gives us a total of
Ps. 129,819 which is the applicable NAR to compute COI.
In this example we first need to evaluate the death benefit
payable. In the first computation (Letter A), the first formula is
the Face Amount plus Single Premium less 125% of Each Partial
Withdrawal which gives us a total of 1,250,000 pesos death
benefit. In the second computation (Letter B), the policy’s fund
value is equal to Ps. 1,255,888. Letter B is the death benefit
since
it is higher than A.

formula is Fund Value less Fund Value which gives us a total of
zero pesos. Since NAR is zero, no COI is deducted from the fund
value.
Note that if the fund value declines and becomes lower than
Letter (A), in the death benefit computation, deduction of COI
resumes.
You may notice that due to the nature of the death benefit of
single premium products (higher
of 125% of SP or Fund Value), the NAR of single premium is
more dependent on the fund value.
C O NT I NU E
Next: Single Premium VUL Product Variants

What are the product variants of Sun Life's Single Premium VUL?
LEARN MORE
Lesson 13 of 20
Single Premium VUL Product Variants
Review some of the product variants of Sun Life's Single Premium VUL.

Click the PDF document to download the Single Premium VUL Product Variants.
Single Premium VUL Product Variants.pdf

1.2 MB
Next: Sample Single Premium VUL Product and Applicable Charges
The simulation will be based on the scenario of Joshua, a 45-year-old male client with a Sun
MaxiLink One Single Premium VUL policy.
LEARN MORE
Lesson 14 of 20
Sample Single Premium VUL Product and

Applicable Charges
Identify the charges of the product.
Click the PDF document to learn about the Cost of Insurance (COI) Rates.
Cost of Insurance Rates.pdf

122.3 KB
C O NT I NU E
For this sample illustration, the sample Single Premium VUL product is Sun MaxiLink One.
Here are the client's details:
This is the Single Premium VUL proposal.

Take a look at the Charges.
C O NT I NU E
Charges
This explains how the charges are computed, which is based on the Cost of Insurance on a per
month basis. On the Proposal itself, the charges are shown as per year.
C O NT I NU E
Here are the GIO Guidelines for the Sun MaxiLink One and the Sun MaxiLink Dollar One.


Here are the GIO Limits.

GIO LIMITS
Meet Joshua, the client

At a Glance: Single VUL Death Benefit and Living Benefit
For Joshua's Single Premium VUL policy, here are the

Death Benefit and Living Benefit at a glance.
 **The values above are computed assuming annual premiums are paid
regularly and no withdrawals have been made. It is based on 4% projected
return which is subject to change and is not guaranteed by Sun Life. Projected
values are net of all current charges.
Next: Knowledge Check

Review what you've learned.
LEARN MORE
Lesson 15 of 20
Knowledge Check
Ready to show what you know? Choose the best answer for each question.
Question
01/05
Among all the VUL charges, which one is not applicable to the Single Premium VUL?
Insurance Charge
Periodic Charge
Fund Management Charge
Premium Charge
Question
02/05
Following an application that was settled under Guaranteed Insurability Offer (GIO), the
life insured dies within the first two (2) years after the Policy Effective Date. Such death
is due to causes other than an accident.
What will the death benefit payable be limited to?
125% of the Single Premium
Fund Value + Single Premium
Fund Value + Insurance Charge
500% of the Regular Premium less 125% of each Partial Withdrawal

Question
03/05
What is the minimum death benefit for the Sun MaxiLink One GIO-issued policy?
125% of the Single Premium less 125% of each Partial Withdrawal, if

any
125% of the Single Premium + 125% of all Excess Premium less

125% of each Partial Withdrawal
125% of the Single Premium + 125% of all Excess Premium
125% of the Single Premium + the Policy’s Fund Value

Question
04/05
The Cost of Insurance (COI) of a Single Premium VUL is based on the:
Amount of Single Premium only
Investment Funds chosen by the client
Amount of the entire excess premium only
Net Amount at Risk and Tabular Insurance Rate

Question
05/05
In a GIO-issued Single Premium VUL, if the applicant dies before the policy issue date,
then Sun Life will return:
Fund Value + Insurance Charges
Single Premium paid
125% of the Single Premium
500% of the Regular Premium

Lesson 16 of 20
Reminders and Tips
Reminders and Tips
Check each box to proceed.

Insurance companies deduct some industry standard fees from the premium and fund
value. Keep in mind that these fees vary per product.
When a client buys a life insurance policy, be sure to emphasize the policy standard fees
and discuss how premiums are allocated.
There is no premium charge for riders and extra premiums. These go directly to the
fund.
There is no monthly periodic charge for riders, excess premiums & extra premiums
including the Single Premium VUL.
The Cost of Insurance (COI) increases based on the Insured’s attained age every year. COI
continues up to the maturity of the plan.
The Policy Fund Returns will NOT be exactly the

same as the Investment Fund Returns due to the
following reasons:
Check each box to proceed.
Periodic VUL charges such as the premium charge and periodic charge
Continuous or increasing Cost of Insurance Charge -- up to age 88 or 100
Frequent withdrawals
Discontinuation of payment of Regular Premium -- for example, availment of the
Premium Holiday
Next: Post-Purchase Concerns of Clients

Learn how you should deal with the most common post-purchase concerns of our clients.
MORE TIPS
Lesson 17 of 20
Post-Purchase Concerns of Clients
Managing our Clients' Concerns

After sales concerns are often one of the challenges in any industry offering products and services. In
the financial insurance industry, a service or product sold is not considered the end once the client
has purchased it, in fact, it would only be the beginning of a long-term partnership between the
client and the advisor.
This lesson will help you become familiar with some of the most common post-purchase concerns of
our clients upon purchasing our VUL products and on how you can deal with these effectively.
Next: Summary
Let's have a quick review of what you have learned in this lesson.
LET'S WRAP UP
Lesson 18 of 20
Summary
Click the hotspots to review the key takeaways.


Variable Unit-Linked (VUL)
Is an investment-linked life insurance plan that provides protection and the opportunity
to grow savings over time.
Is both protection (insurance) and accumulation (savings/fund value).


The PREMIUM for VUL varies according to plan type or design.
With the Regular Premium VUL, the payment is submitted yearly, semi-annually or quarterly (by interval).

Aside from the Regular Premium VUL that was discussed, there is also the Single Premium VUL.
With the Single Premium VUL, the payment is submitted one time only.
If the client has extra money, and he or she plans to pay more to generate more fund units, then he or she
can do excess premium or top ups.
Next: Achievement Badge

You are about to complete the module.
CONGRATULATIONS
Lesson 19 of 20
Congratulations!
You have completed the module.
You have earned a badge.

Next: Resources
You may download the module handout.
DOWNLOAD
Lesson 20 of 20
Downloadable Handout
Click the PDF document to download the module handout.
VUL_Advance_2_How_VUL_Works_Reminders_and_Tips.
pdf
4.3 MB
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VUL Advance 2 - How VUL Works,

Reminders and Tips

In this module, these two designs will be discussed in detail.

R EGULAR PR EMIUM VUL

How does the Regular Premium VUL Work?

Regular Premium VUL Recap

Regular Premium VUL Product Variants

Sample Regular Premium VUL Product and Applicable Charges

SIN GLE PR EMIUM VUL

How does the Single Premium VUL Work?

Death Bene t and Living Bene t

Single Premium VUL Recap

Single Premium VUL Product Variants

Sample Single Premium VUL Product and Applicable Charges

R EMIN DER S AN D TIPS (VIDEO)

Reminders and Tips

POST- PUR CH ASE CON CER N S OF CLIEN TS

Post-Purchase Concerns of Clients

ACH IEVEMEN T B ADGE

This icon indicates a clickable link to additional content.

By the end of this module, you will be able to:

Explain Variable Unit-Linked (VUL)

Variable Unit-Linked (VUL) is an investment-

linked life insurance plan that provides

protection and the opportunity to grow

VUL is both protection (insurance) and accumulation (savings/fund value).

Flip the cards below to learn more.

Pays out a minimum

Click the previous (left) and next (right) arrows.

The foundation of the VUL is an insurance policy attached to an

Click the previous (left) and next (right) arrows.

Click the previous (left) and next (right) arrows.

1. REGULAR PREMIUM - The policy owner may pay the

2. SINGLE PREMIUM - The policy owner may pay the

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How does the Regular Premium VUL Work?

VUL Infographics diagram vFINAL_REGULAR.jpg

Next: Death Beneﬁt and Living Beneﬁt

Death Beneﬁt and Living Beneﬁt

The Death Beneﬁt and Living Beneﬁt will be discussed in detail.

Regular Premium VUL: Death Beneﬁt

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If we breakdown the components of Letter (B), we have the following:

- 125% of excess premium: this is variable and depends on the actual

Some possible scenarios when (B) could be higher than (A):

Basically, if the client is standard, no rider is attached to the policy and no

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Regular Premium VUL: Living Beneﬁt

What triggers a client to withdraw his fund

These withdrawals are

These withdrawals are

Augment your cash

Enjoy the GAINS

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 REMINDER: Any withdrawals made from the policy will consequently

5 working days (Metro Manila)

7 working days (Provincial)

Basis of NAVPU = price next day/forward pricing

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