Term Life Insurance

[artificialstar]

Hi mga sis! I haven't seen a thread on this so I went ahead and made one. If there is an existing na, mods, kindly merge nalang.

Curious po ako sa mga nag term insurance. I have a whole life insurance, but thinking of switching policies. Feeling ko kasi mas ma-maximize mo yung money mo dito.

Sa mga kumuha ng term na renewable every 1, 5, 10 or so years, how long are you intending to keep the policy? Kasi diba insurance gets expensive as we age, so parang nakakalugi siya pag you keep it for so long?

Please do share kung ano yung term insurance ninyo.

Thank you!

[artegirl]

Hi sis,
I think term life is recommended for people with dependents whose objective in getting a life insurance is purely protection.  True it gets expensive since premium is based on attained age, pero as you age, lesser din yung financial responsibilities mo (i.e. kids finally graduating, getting a job, etc). 

I remember my dad naka term insurance sya when we (my siblings & I) were still in school.  when I asked him about it, bakit hindi sya mag permanent, his reason was he needs a really huge amount of coverage since dami namin dependents nya (4 school-age kids + mom was a housewife).  so the face amount then of his policy should be sufficient to maintain our lifestyle (at least until we graduate and get a job) should something happen to him.   Tapos nung isa isa na kaming magkakapatid matapos ng school, unti unti na din nya reduce yung insurance coverage nya

[ikaela]

There really is no argument that the best kind of insurance is buying term and investing the difference. You are right -- you are protected for a minimal amount and the extra money earns considerably a lot more. But what comes into play here is plain old human behavior. Would you really be able to invest the difference, regularly, consistently, religiously? We know how "things" always like to come up -- a family member who gets sick, a niece needing tuition, a car that unexpectedly conks out, a kitchen sink that decided to leak and cause water damage to your entire wooden floor. If you know yourself very well and know that you can really abide by the "investing the difference" part, then by all means, go ahead and incur the fees in converting that whole life to term insurance.

Back when I was trying to get insurance for myself (and had very limited money), nothing, not even term insurance, appealed to me. I could pay the premiums, but my income wasn't regular -- so I didn't know if I could keep up with that insurance policy a few years down the road. I searched a bit more and found out that my bank, BPI, had this Save-Up savings account product that had an accompanying Philam Life insurance equivalent to 5x up to 10x your average daily balance. And it covers up to age 60 (there's another one that covers up to age 70, I can't remember it now). No premiums, no medical exams, and life insurance of up to 4 million? Perfect for someone like me. I keep part of my emergency fund in there. If I'll be needing insurance coverage beyond 4 million, well, that's one of the reasons why I invest.

I also just want to share that my parents, in their whole lives, did not get any kind of insurance. It just wasn't in their consciousness. Thankfully, nothing happened to them! They are still able to get insurance in their old age, though, through their investments. Plenty of investment vehicles being offered now have an insurance-linked feature. For example, if you open a time deposit for a 5 million placement, you have life insurance coverage of 1 million while the time deposit is in effect. Or something like that.

[caterpillar-girl]

^I was thinking about BTID principle too. I've to admit that my investing the difference part is really more on Automatic Top Up, every 15th or so. So far my BDO UITF hasn't really improved, lugi pa nga, but I still do my monthly automatic top ups. I just stopped it for a month or so when the stock market was really down. Does that work as Buying term and investing the difference, yung automatic top up?
Or kailangan talaga aggresive investing?

To the thread starter, when I was scouting for term insurance, the one I considered was Insular's term. (Lowest premiums for a high coverage, or at the very least same amount of coverage that other companies were offering for a higher yearly premium.) I didn't get it kasi wala talaga akong dependents right now. Even if something were to happen to me, my family's life will go on without much disturbance. I will get term as soon as I get married or maybe even as soon as my husband and I have a child.

[artificialstar]

Thank you sa mga input nyo mga sis. Napaka insightful.

Would you really be able to invest the difference, regularly, consistently, religiously? We know how "things" always like to come up -- a family member who gets sick, a niece needing tuition, a car that unexpectedly conks out, a kitchen sink that decided to leak and cause water damage to your entire wooden floor. If you know yourself very well and know that you can really abide by the "investing the difference" part, then by all means, go ahead and incur the fees in converting that whole life to term insurance.

Thanks for pointing this out sis. This is very important to those who are considering the BTID strategy. Personally, if I have a goal(especially kung financial), I stick to it like a leech, so I'm pretty confident I can consistently invest the money. OC kasi ako pagdating sa budget. Hehe. And yes, "emergencies" happen all the time, kaya mas okay if i-set aside kaagad yung pera pag dating ng sweldo or income.

I also have BPI save up, but I can't see myself using it for long term(up to 30-40 years). Currently, I don't intend to put so much money sa bank while still young (high kasi risk tolerance ko). 

I don't have dependents but kumuha ako as early as now to "lock in" the premium. As they say, the younger you are, the lower your premiums and most likely wala ka pang pre-existing illnesses. Not sure if that makes sense to you mga sis. Sigurista lang kasi ako.

^ sis, if you can remember po, how much yung premium and how much din yung coverage? I believe you're referring to I-Insure65 na policy? Insular is also included in my list. 

May term din yung Philam. Their monthly premium is 500-600, although 500k lang yung coverage.

[artificialstar]

Up for this. Anyone?

[ikaela]

Have you gotten insurance yet, artificialstar? Based on what you shared in your posts -- na you stick to your saving goals like a leech -- mag-term ka pa rin ha, wag ka na mag-VUL. Okay yung level term insurance ng Philamlife, yung 10 years or 20 years coverage. And if I remember right, kahit annual yung renewal nun, pero you pay cosistently every year, sure na accepted ka for coverage even if you get sick or acquire some disease somewhere in the duration of the policy. Yung IMG, nag-partner sila with Philamlife and they offer 1M term insurance for only 3,230 a year. Read about it here. May mga riders pa. Gusto ko nga mag-inquire pero no time or place to go to an IMG meeting. I want to ask them if the insurance they're offering is guaranteed renewal each year, and if locked-in nga yung premiums if you get it at a younger age (or if it's computed to go higher as you get older).

[artificialstar]

^ thanks sa reply sis. I know someone from IMG, will ask them about sa philam. Inform din kita. Yup, term nga yung kunin ko. My friends however, prefer VUL, convenient daw kasi para sa kanila coz they don't have to open a new investment account.

[Baby Madeline]

^Thank you for starting this thread.  I plan to get a term insurance din kasi for my husband and myself. I have a VUL na which I got when I was still single and the beneficiaries are my parents and I don't intend to change that. My term insurance would be for the benefit of my husband naman. We'll certainly would open separate investment accounts na lang.

Kindly update us about Philam too. Thanks!

[chefron]

any insights on YRT? i would like to get one sana as an additional coverage dun sa 20 year term ko

[ikaela]

I had to google YRT -- yearly renewable term? That's what we're discussing here, and yes, go ahead and get it. It's the cheapest way to add to your insurance coverage.

My condolences pala, chefron. I read your posts in the Memorial Plans thread.

[chefron]

thanks sis.

do you think yearly renewable term alone is sufficient enough if you dont have any other insurance plan/coverage?

[ikaela]

^Better a yearly renewable term than nothing. Pero like I mentioned in my previous post, maraming products na ngayon na may "free" insurance. Dami nang ways to add to your coverage.

Yung 20-year term mo, is it not renewed yearly? Or do you pay for 5-10 years then covered ka for 20 years?

In my projections, I will only be needing insurance coverage for a maximum of 15 years. If things go according to plan, 10 years lang, with the coverage increasing to possibly 5M, 8M, up to 12M as the years pass. So for me, I find your 20-year coverage more than sufficient, while adding yearly renewable term insurance in the later years.

[chefron]

10 years to pay 20 yrs coverage. this coverage is good enough until my youngest graduates from college.

[artificialstar]

nice idea yang red cross ah. hehe. will have a talk with an IMG member bukas. will give you an update sis ikaela

[artificialstar]

@sis ikaela: regarding sa term life insurance ng IMG with philam, guaranteed renewal every year daw pero hindi locked in yung premium. nag-iincrease yung premium every year. hth

[ikaela]

^Ah, okay, ayos. Thank you for the follow-up!

[mameejhy]

So I became creative with this insurance thing. As you read in my other posts, I found out about BPI's Direct Save-Up with free insurance product. I also found little two-in-one products with life insurance here and there. For example, if you become a member of the Red Cross and pay 1K a year, they give you 300K personal accident insurance + medical reimbursement + hospital income. And they cover motorcycle riding pa, kaya favorite ito ng mga motorcycle clubs. With Blue Cross health insurance, if you add 800 to your premium, you get 1M personal accident insurance. I'm also thinking of joining the big cooperative in my hometown because they offer 100K life and accident insurance, medical reimbursement and hospital income along with your investment with them.

Ok ito sis!

[chefron]

sa regular insurance theres the 2 year contestability period, paano sa YRT?

[mxherr5]

Walang pinagkaiba, 2 years pa rin ang contestability period.
**Verified by checking my Manulife term contract**