VUL Products_Funds_Aug2024

Sun Life Variable Unit-Linked (VUL) Products Overview

Objectives

  • Familiarize with VUL Funds and Features.

  • Determine VUL Products and their distinct features.

Table of Contents

  1. Closer Look at VUL

  2. VUL Products

  3. VUL Funds

Closer Look at VUL Products

  • Includes both PHP and USD VARIABLE UNIT-LINKED (VUL) PRODUCTS

  • Investment-linked insurance options available with either regular or single premium categories.

VUL Products Breakdown

  • Regular Premium:

    • Sun FlexiLink, Sun Maxilink 100, etc. (PHP)

    • Sun FlexiDollar, Sun Maxilink Dollar One, etc. (USD)

  • Single Premium:

    • Sun FlexiLink1

    • Sun FlexiDollar1

Key Features

  • Investment Allocation: Funds can be invested in various options, including equity, bonds, and balanced funds.

  • Death Benefits: VUL products usually provide a death benefit which is the higher value of the face amount or the fund value.**Conditions apply based on premium payments.

Quick Review of VUL Products

  • Types of VUL Payments:

    • Regular Pay (e.g., Sun FlexiLink, Sun Maxilink)

    • Single Pay (e.g., Sun FlexiLink1, Sun FlexiDollar1)

Benefits

  1. Living Benefit: Benefit options often include a living benefit that allows early access to the policy's value under certain conditions.

  2. Investment Growth: Provides exposure to market opportunities allowing potential growth over time.

  3. Loyalty Bonuses: May offer bonuses based on the average fund value over specified periods.

Product Highlights

Sun FlexiLink

  • Age Range for Issue: 0-70 years old.

  • Death Benefit: Higher of the sum of face amount minus loads and fund value or 500% of total regular premiums paid.

Sun Maxilink 100

  • Coverage: Lifetime insurance coverage aimed to provide savings within the product offering.

  • Death Benefit: 200% of the face amount + fund value or 500% of the regular premium + excess premiums.

Fund Options

Investment Funds Available

  1. Dynamic Fund:

    • Focus on maximizing returns with market fluctuations considered.

  2. MyFuture Funds:

    • Target funds that help meet financial goals with guided portfolio transitions.

  3. Peso Global Funds:

    • Peso-denominated funds investing in foreign securities.

Fund Administration Guidelines

  • Fund Switching: Allowed with conditions. First four switches per year are free.

  • Payout Process: Payout rates determined by performance; checks will be distributed based on policies on a scheduled basis.

Payout Structure

  • The payout can consist of income received, capital gains, or a combination thereof.

  • Announcement of Payouts:

    • Declared at pre-scheduled intervals, generally every June.

Summary of Key Terms

  • Face Amount: Minimum coverage that the policy will provide upon the insured’s death.

  • NAVPU: Net Asset Value Per Unit that determines fund performance and value.

  • Premium Holiday: Option for clients to pause premium payments under certain conditions.

Conclusion

The Sun Life Variable Unit-Linked Products offer a variety of plans focusing on long-term insurance with investment potential, catering to varying risk appetites. Understanding individual product features and fund allocations can aid clients in ideally managing their VUL policies.