Tuesday, July 10, 2012

Going Over My Life Insurance Policy


I'm a firm believer in life insurance, I like the assurance that if I suddenly drop dead tomorrow, my loved-ones will not have to worry financially (at least for the next year or two) and can take their sweet time grieving my departure.

I took out a Sun Life Sun Maxilink Prime policy because the idea of a life insurance policy supplemented with mutual funds seemed like sheer genius to me back then. I have been insured for more than a year now, but I have to admit that I've only gone through my policy once. Of course, my agent explained the salient points of my policy before I signed up for it, but considering how much chattering goes on whenever we meet, I'm not surprised that I can't recall even a fourth of his explanation. After months of procrastinating, I finally sat down and scrutinized my life insurance policy and here is the summary of benefits payable:

Basic Benefit- Face amount + Fund value on death of Life Insured.
Additional Benefit - (Accidental death) Php500,000.00 if death of Life Insured occurs before May 24, 2049 from an accident.
- (Total disability) the Regular Premiums will be paid during total disability of Life Insured (note: Ask agent about this. What Regular Premiums? Who will pay these Regular Premiums?)
Premium payment period- 10 years or until May 24, 2021 (although could be longer if the Fund Value is insufficient to pay charges)
Maturity Date- May 24, 2067.

I tried to go over the Premiums and Charges Provisions, but they honestly made my head ache. But the benefits are pretty straightforward and from what I gathered, if I die while my insurance policy subsists, my beneficiary will receive the Face Value + Fund value. And if I die from an accident before May 24, 2049, my beneficiary will receive an additional Php500,000.00.

Aside from giving me peace of mind, I also like how I can withdraw part of the Fund Value any time while the policy subsists, in effect creating another stream of income that I can tap into when needed. There's no provision though on the cash surrender value, will have to ask my agent about that.

Anyway, I'm glad that I went over my policy, if only to get acquainted with what I can expect from it. Although I'm still wondering why most financial experts (i.e. Suze Orman and the speaker during the Colayco seminar) recommend a term insurance over the other types, including whole life insurance, which is what I got. Must research into that too.

P.S.
You may also want to read this great post on life insurance from Mel Briones of Youwanttoberich.com. Please click here.
P.P.S.
RIP Mang Dolphy :(

5 comments:

  1. Hehe, yes ask Ken about the nosebleed details but happy to know that you have a good grasp of what you got yourself into (as opposed to many who don't) and that you're happy with it :)

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  2. Hi Teeyah!

    Yup, I'm happy with my plan :)

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  3. I would also like to know ang difference between term insurance and VULs. Npka-inspiring ng mga posts mo, Ate Jill. Keep them coming! =)

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  4. My husband got a Maxilink also while I got a MaxiBright.

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