As I promised in my last post “In Search for Best Educational Plan – 2 Mother’s Dillema“, I’ll discuss more about Sun Flexilink.

When I say ‘Sun Flexilink is the older brother of Sun Maxilink Prime’, what I meant was simply Sun Flexilink was introduced first. It was 2004 when Sun Flexilink was born as compared to Sun Maxilink Prime which was introduced only last year 2010.

Like Sun Maxilink Prime, Sun Flexilink is also an insurance with investments. Part of your payment pays for your insurance and part is invested in a mutual fund like investment. So your family is insured (protected) in case death comes to the payor/insured. And if nothing happens to the insured, you may withdraw the fund value of your plan.

Sun Flexilink

Sun Flexilink’s endorser is Bam Aquino

 

Definition

Straight from Sun Life’s website

Sun FlexiLink (regular pay meaning installment up to 10 years or more)
The Sun FlexLink is a peso-denominated variable life insurance plan that provides financial protection PLUS the flexibility to choose where your premium payments will be invested. Our top-notch investment professionals will carefully invest a portion of the premiums you pay – so you get the best out of your hard-earned peso.

Sun FlexiLink1 (one time payment only)
Sun FlexiLink1 is a single pay peso denominated variable life insurance plan that provides financial protection PLUS the flexibility to choose where your premium will be invested. Our top-notch investment professionals will carefully invest a portion of the premium you pay – so you get the best out of your hard-earned peso.

Sun Flexilink’s Description and minimum amount

 

How much is the minumum?

For Sun Flexilink, the minimum amount is very affordable. For example, for a 30 year old getting the minimum P250,000 coverage with Accidental Death Benefit (ADB) and Total Disability Benefit (TDB) Rider, the annual premium is only P8,660.00 or only P722 monthly.

However, I wouldn’t suggest getting the minimum amount of P250,000. Why? For the same age of 30, a P500,000 coverage with ADB and TDB Rider, you only need to add P4,210 more per year or just P350 more per month = P12,870.00 yearly / P1072.5 monthly.

And why am I pushing for Maxilink Prime? Simply because you only need to add P6,954 per year or just P579.50 per month and you already have an additional coverage of P200,000 / total coverage of P700,000.

More than that, fund value at 8% and 10% fund performance by the age 65 will look like this

P8660 a year (Flexilink) at 250k coverage  at age 65 =  P447,580 (8%) /  P830k (10%)

P12,870 a year (Flexilink) at 500k coverage at age 65 =  P526,858 (8%) /  P1.02 Million (10%)

P19,824 a year (Maxilink Prime) at 700k coverage  at age 65 =  P1.34Million (8%) /  P2.42Million (10%)

You see, just by adding a few more hundreds per month, the effect is tremendous. That’s why if you can stretch your budget a little more, it is wiser to get Sun Maxilink Prime. However, if you’re really, really (currently) tight on the budget, having Sun Flexilink will give you peace of mind.

* Don’t get me wrong. You might think Sunlife insurance advisors get more on Sun Maxilink Prime that’s why I’m pushing Sun Maxilink Prime. It’s actually the other way around. We do get more on Flexilink (remember the premium charge of up to 10th year vs Maxilink Prime that is up to 5th year only). I’m not even sure if you will believe me when I say I’m more happy when my clients benefit more from their investments coz I really do.

For Sun Flexilink1 (Single Pay Plan), the minimum is P100,000. The insurance is only 25% of the premium or in the case of P100,000 , it’s only P25,000. Why is that? Sun Flexilink1 is designed for investment purposes rather than insurance.

What are the similarities and differences of Sun Flexilink vs. Sun Maxilink Prime?

Similarities

Both plan are Insurance with investments, meaning, part of your payment goes to your insurance coverage and part goes to investments. So ‘Insured ka na, kumikita pa pera mo’.

For Sun Flexilink, you can choose to have a Premium Holiday – meaning, when do you plan to stop your payment. However, usually it is offered with at least 10 years paying period.

For Maxilink Prime, payment period is set to 10 years.

Differences

Sun Flexilink appears to be cheaper than Sun Maxilink Prime in terms of premium. But in reality, you get more value in Sun Maxilink Prime. Why is that? First, Sun Maxilink Prime has a feature wherein the face amount is doubled. For example, a death coverage (face amount) of P350,000 will become P700,000 as feature of the plan.

Also, Sun Maxilink Prime is built to have more funds going into the investment part that’s why if you try to compare the same profile with the same amount of budget, fund value in Sun Maxilink Prime will always reign supreme over Sun Flexilink.

How is that?

Sun Flexilink’s premium charges is up to 10th year wherein Sun Maxilink’s premium charges stop on the 5th year. That’s why Sun Maxilink Prime’s fund value will appear higher and better than Sun Flexilink.

 

Rule of Thumb

If you’re looking for an Insurance and  you got the budget, go for Sun Maxilink Prime. But if you’re a little tight on the budget the moment, having Sun Flexilink will give you peace of mind.

If you want a proposal either in Sun Maxilink Prime or Sun Flexilink, please fill up the form below

 

cforms contact form by delicious:days

 

Garry De Castro – Sun Life Financial Advisor  (Makati / Bulacan / Bataan / Pampanga)
YM – gigabytes27
M – 0922 897 8077 / 09164147400
E – garryzaldy.s.decastro [at] sunlife.com.ph / garrydc [at] financialplanningph.com – (replace [at] with @)

Just a request though. Once I send you the proposal, please confirm with me that you received it. :D

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Garry Zaldy de Castro is an advocate, Financial Advisor, Certified Investment Solicitor (Mutual Fund Representative), blogger, IT practitioner, husband to Aileen and a dad to Jacob Benedict. He started Financial Planning Philippines in 2008 just to share his financial learnings friends, relatives and anyone who wishes to be financially independent.
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