Tips on choosing/buying life insurance

Posted by Fitz Villafuerte under General Information, Personal Finance on November 8, 2012

Hello po! Tanong ko lang po, anu ba yung mga dapat nating isaalang alang sa pagbili ng life insurance. Im planning to buy next year but i can’t decide which insurance suits best for me. Of course if you talk to their agent or if you read their plans on their websites, everything good are said. Insurance companies often give us proposals. What should we look on that proposal to determine that they had offered the best for us. And also about this insurance calculation, do we have a formula for this? By the way I’m 22 years old.

I’ll be waiting for answers po. Thank you very much.

Godbless everyone.




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7 Responses to “Tips on choosing/buying life insurance”

  1. Frank says:

    Hi Bojie!

    I am in the process of being a licensed insurance agent (hopefully next month), but before that, I got my first insurance early this year. It’s VUL!

    You might not get a typical “agent” answer from me that is because I have a regular job that provides for my family pretty well. Read on…

    VUL simply because I can choose where the Insurance company will invest part of my premium. You cannot do this with traditional life insurance. You have to know that VUL’s are Insurance products with investment opportunity and not the other way around.

    Every Insurance company offer various products. Thru the proposals, you can choose which one is best for you. Everything that you have to know with regards to the product is in the proposal. Ask an agent to explain things that are not clear to you. Remember, it is your Life!

    I must say that I admire you. How I wish I got my insurance when I was your age. I could have paid less than what I am paying now hehehe. (Don’t forget, as you age, premium goes up).

    Before getting an Insurance, set aside for your emergency fund. If you already have the emergency fund, then get insurance (for me, VUL), then invest……….

  2. Bojie says:

    Hi sir Frank!!

    Many thanks for the reply. Wow! congratulations in advance. You were already so helpful to other people through this site and I know that you’ll do even more by being a licensed insurance agent. God bless you for the new career.

    I have attended seminars, read blogs about financial management and did some research. I must say that I did quite a wrong move since I am already at investing few months ago. Didn’t have insurance yet (I’m a breadwinner). That’s my priority right now – to have sufficient knowledge about insurances and must acquire it next year.

    I’m actually looking after VUL because of its features. Is it right to say that VUL premium are higher than those of the traditional life insurance because of its two components (life insurance and mutual fund)?

    Regarding the proposals, currently I have difficulty on interpreting and comparing from one to the other. Well somehow I’ll just get used to it through more study..hehehe

    May I know which VUL did you got?

    Thanks!!..Godbless

  3. Frank says:

    Bojie,

    It is an advantage that you have taken seminars on financial management. I never had one although upon reading blogs and a lot of research, it seems that I am on the right track.

    Below are answers to your above questions:
    1. You cannot compare Traditional Life Insurance premium to a VUL simply because they are of different type. If there is a Traditional Life Insurance with the same features as VUL then you can compare. But there is none that I know of.

    2. Agents are around to answer questions from prospective clients. If there is something that you need to clarify with regards to your proposal, ask the agent, its free 🙂

    3. There are products that are more on insurance, less investment option and those that are more on investment and less on insurance. I got the one which is more on insurance.

    I will happy to send you a proposal thru email if you like :). I suggest that you also ask for proposals from other Insurance companies.

    Remember, premiums will be determined by the following: Age, Sex and Smoker / Non-Smoker.

  4. Bojie says:

    Hello sir Frank,

    Yeah, that’s what I’m doing right now. I had already ask for proposals and I’ll be very glad to receive yours. [email protected] …that’s my add and I’m a non-smoker.

    Thank you sir!!

    Godbless

  5. frugalninja says:

    You may also consider other options like getting term insurance and investing the rest of the money (cost of VUL minus cost of term insurance) through stocks, mutual funds or UITFs =)

    The more options you have the better.

  6. kris says:

    Hi I’m Kris, PhilAm Life Financial Advisor…I can help you in choosing the best policy for you…[email protected] THANKS!

  7. kate16 says:

    Health insurance is very important nowadays, having one would give you something to cling to in times of sickness that’s why I trust Prudential Life.

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