Mutual Funds vs. VULs?

[Allan Latras]

---

Asa mas conservative? Asa mas maayo ug performance? If Mutual Funds, where should I invest? If VUL, asa sad ko mo-invest?

[makie29]

Actually mutual funds and VULs are nearly similar. The investment portion that is attached to VULs are actually mutual funds generally. The main difference between both is the insurance component that is attached to VULs. Mutual funds are pure investment (doesn't have any life insurance attached to it). VULs are offered by life insurance companies while mutual funds are offered by mutual fund companies. Life insurance companies can't and are not allowed to offer pure investment products since they are registered as life insurance companies hence any product that they should offer must have a life insurance component with it. Mutual fund companies on the other hand are registered as investment firms hence they can only offer investments.

As far as which is better, it's quite hard to tell since it will boil down to what the client needs. If you want protection, go for VULs since VULs designed for protection give very high life insurance coverage and also provide living benefits (investment). If you want growth, go for pure mutual funds.

For VULs, Philam Life, Sun Life, Manulife, Pru Life, AXA among others are good companies to choose from.
For mutual funds, you can choose between PAMI, FAMI, Sun Life and Philequity.

[medwarc]

Asa mas conservative? Asa mas maayo ug performance? If Mutual Funds, where should I invest? If VUL, asa sad ko mo-invest?

I think I can relate to this during the time I was looking for mutual funds. Since I can't find them, I went to life insurance hoping they will assist me in mutual funds since they are partnered with them but quite disappointed due to they all are offering me VUL which is quite expensive. Here's my point bro, it seems you are into investment, just go for MF. But as most of our fellow istoryans would advise here, be protected(at the same time will protect your long term investment) by getting insurance and healthcare...
If ever you want VUL, I suggest for Philam Life and Sun life since these are the 2 insurance companies I only know with their own mutual funds...

[MK]

Invest in both...

Insurance/healthcare for pure protection (important component in financial planning).
MF for pure investment...

[ginarnz]

hello good day!
I work with PruLife UK and we do have VUL, and the pioneer of VUL.
Before telling you our background, I just i just have to simply answer your questions.
Both type of investment instrument do have risk. Investing in MF can put your money into a a very high risk exposure while VUL isn't high coz these are linked to protection. It is like when you invest/buy a brand new car, you also need a spare tire "just in case" one of your tires won't be working in the middle of your driving, right?
so, in investing, you also need a spare tire "just in case"! and that spare tire is the protection.

there's nothing wrong about looking into purely investments, but in creating our financial building, do you think it would be better to create a strong foundation of our financial building FIRST? just think about it.

La Arnie Mesa
Pru Financial Consultant
0922.406.0889

[shopaholicgoddess]

the difference in mutual funds and vul is the insurance component. In VUL a small portion of that fund goes to insurance, which is good because VUL's usually have 125% insurance component, so even if down ang market and the insured passed away, the funds that need to be withdrawed will not lose its principal if down jud ang market at that time then your beneficiary will not have to pay for estate tax. That is if you put it under irrevocable beneficiary. In mutual funds ky 100% invested to investment. But in my opinion, better get protected, barato r bitaw ang insurance component ana, para tax-free and d ma lose ang principal in case down ang market at the time of death.

[FAMI Cebu]

Hi everyone!
First Metro Asset Management, Inc. (FAMI) will be conducting an investment talk entitled "Wealth Management and Mutual Funds" on October 24, 2014 - Friday, 5:30 to 7:00 pm, in First Metro Investors Center, G/F Metrobank Plaza Building Osmena Boulevard Cebu City. You may contact us at 520 6958 and look for Ms. Mary Josephine Go.
Hope this helps.
Thank you and hope to see you there!