Life Insurance or House?

[Clair de Lune]

I'm 26 yrs old and single. I really want a house of my own, but which do you think is a better investment? Life insurance policy or house?

[mxherr5]

Is this a one or the other thing?
I don't think it should be.

Life insurance (as an investment) can cost
as little as 1,000 or if you want just life insurance
strictly for insurance purposes, it would cost you
just hundreds for a 1M policy.

Compare that to a house which might cost you
8,000 upwards.

You can do both.

[sweet_cherry]

house inuna namin. we had a really simple wedding (think 3.5k na wedding gown), pero nagstart kami ng house construction 4 months after the wedding. Simpleng starter house lang na good enough pag nagka kids na kami pero I'm proud to say we built it ng walang na incur na loan (although na short kami ng 100k so nagparental loan kami pero bayad na to) 

wala kaming insurance, mas gusto ko na may nakatabing pera just in case something untoward happens. feeling ko kasi sa dami ng exclusions in the end pag kailangan ko wala din akong makukuha

[ikaela]

You can't compare the two. Life insurance is not an investment -- it's protection. It's protection for when in case you decide to buy that house and unexpectedly die or become disabled (and become unable to work and unable to pay off the mortgage), insurance should step up and pay that for you. Your beneficiaries get to keep the house instead of it getting foreclosed. May bahay pa rin kayo kahit namatay na yung tagapagbayad o hindi na makapagtrabaho yung nagbabayad.

Life insurance should never be thought of as an investment. That said, you can get a big coverage for yourself for a small amount.

[sweet_cherry]

di ba di rin investment ang house, based from kiyosaki's book, it is an investment if it will make money for you.

[Cheesecak3]

For me, mas inuna ko ang pagbuild ng house.

[izabelle]

Both are important sa magkaibang paraan. Mas inuna nmen kumuha ng bahay kasi that time, i don't realized the value of life insurance. Kumuha lang Kami nung nagkababy na kami, don kasi namin narealized na we need it.

[brandi]

Inuuna ko yung life insurance. If and ever something happened to me, i am insured. Hindi mahihirapan yung mga maiwan ko or yung mga magaasikaso sakin. I remember my lolo na walang insurance and his children have to sell pa his cars and farm kasi hindi enough yung savings niya to cover everything. Kung tutuusin malaki na yung 3M na ipon, pero super kulang pa yun. Kasi hospital bill pa lang niya nasa 7M na paano pa yung ibang expenses? And not to mention, problema pa na maghanap ng buyer and palugi mo pa ibebenta dahil kailangan mo talaga ng pera. I have this uncle who recently died naman, admitted in SLMC global for months at sa ICU pa. Hospital bill went up to 6M. His family didn't pay any single peso. Covered na ng insurance. So kung magkano man savings meron sila, hindi pa naubos kahit na nag shell out na sila for the burial. So there. I am 26. I am insured. I have bdo equities. I invest in stocks. I have an emergency fund na din. Working on retirement fund. Planning to have a business on or before 30. Will buy a house and lot within the next 2years. It all started when i was 24. 

[ikaela]

di ba di rin investment ang house, based from kiyosaki's book, it is an investment if it will make money for you.

Yes, tama. In the strictest sense, yes. Pero sa akin kasi, an investment is anything that makes you wealth AND helps you make wealth. So sa house, hindi naman ako makakapagtrabaho ng maayos kung wala akong matinong bahay. As someone who works at home, tax deductible ko yung home office ko. Kung sa Filipino families, a house is an investment because it shelters the family -- the people who will keep, inherit, and maybe even add to your wealth, take care of you, look after you, and continue your legacy, which are things no monetary investment can equal. In so many words, hindi financial lang ang definition ko of "asset".

^Nice plan you got there, brandi, hats off to you!

[mommyysa]

Both. Magkaiba sya. Pero both are important. Depende rin sa needs and priority mo

[mxherr5]

Agreed.
And you'll be required to get an MRI (basically
life insurance to pay for your loan if you die) when
you get a loan from the bank or PAG IBIG anyway 

[amethyst028]

sa life insurance and investment plan it will take several year of payment then let it mature for several more years depending on the company. and no assurance na andiyan pa yung company pag kailangan mo na kunin pera mo.

sa house when you buy it nakikita mo saan napunta yung pera mo. bought a house for 2M last year october now it's selling price is 3M. preselling ko kasi siya nakuha. mabilis nag appreciate ang value kasi nagkaroon ng mga condos and malls sa area. in 10months nag increase ng 1million ang value. can any insurance company give you that?

but i guess it depends on what you need.

[coffee_art01]

Agree with sis amethyst028. I just bought house in Sta Rosa, Laguna. Ipaparent ko lang yun para bumalik sakin yung pera. I have no life insurance as well, pero kung kaya mo naman both why not. Pero for now priority ko is house. May medicard naman ako sa office. 

[mxherr5]

@amethyst, off topic comment on your post lang.
Houses aren't liquid though and its really hard to
sell it unless you're willing to wait wait wait wait.

I know a couple of units from our condo that
were put on sale, all of them were selling it
at 30-40% less than the developers price and
it was on the market for years.

I don't know if they ever sold it or if they just
decided to have it rented. probably have it rented.

Most personal sellers kasi want cash so no wonder
they had a hard time selling their unit.

What you said about an insurance with a focus
on investment-plan taking several years to bear
fruit is true though.

But using your example, isn't that true for pre selling
projects as well?

And the worst part of it is, there are projects which just
keeps on delaying and delaying and delaying.

@ coffee, you should be able to get both. Its like
asking if you can buy a 10k bmx bike and a car costing
more than 500k. Just get a slightly cheaper model and
you can get your bmx bike.

You can get a VUL from Pru for as low as 1k per mo.
Or if you just want insurance then you can get term insurance
for as low as 166 petot per mo. Seriously, its not that
expensive.

[amethyst028]

^hindi naman mapapanis ang house sis. hehe! i mean kahit hindi mo mabenta agad you can definitley sell it later on. and of course just like any investment you should choose wisely (regarding location and developer). sa condo kasi madaming nagtatayuan na mas ok location tapos price wise very tight so i think mas mahirap siya mabenta.

ang hindi ko lang gusto sa insurance is if you put certain amount of money then pag nag mature siya the value of the money is not that high na sa time na yun. like for example yung total hulog mo p300K for 5years, wait 10yrs then you get 1million. in 15yrs. ano na lang kaya ang nabibili ng 1million? nowadays a decent car will cost you at least p800k cash middle class. how about in 15years? and what about tuition fees in school? nasa 50k per year, college ngayon nasa 50K per sem. so in 15years what is the value of 1million?

but to each its own. madami pa din nag i-insurance because it fits their needs, for me it doesn't kaya ayoko nun. that's all.

[coffee_art01]

Ako din, i'm not ok to insurance. Aside from house, paonti onti din ako nag iinvest sa jewelries. Pero yung mga second hand lang sa pawnshop binibili ko. Kasi mas mura compared sa brand new. Atleast sa jewelry, pag nangailangan tayo, madali lang isangla. Pero wag naman sana. 😊

[mxherr5]

ang hindi ko lang gusto sa insurance is if you put certain amount of money then pag nag mature siya the value of the money is not that high na sa time na yun. like for example yung total hulog mo p300K for 5years, wait 10yrs then you get 1million. in 15yrs. ano na lang kaya ang nabibili ng 1million? nowadays a decent car will cost you at least p800k cash middle class. how about in 15years? and what about tuition fees in school? nasa 50k per year, college ngayon nasa 50K per sem. so in 15years what is the value of 1million?

Oh you were referring to that insurance. Yes, I agree.
I don't know why some agent still push the traditional whole life insurance
as an "investment"
Even those endowment type of insurance where you get
x% every y years can't be considered an investment.

Maybe a very very very conservative investment [textspeak!].

I was thinking more of VUL when I was talking about
insurance as an investment.

VUL returns are completely dependent on the market
and can reach 20+%

[neh357]

Hi guys..

iLL be buying a vul for and will put top ups
instead of buying a house.

makakaipon ka naman sa vul if you just let your money grow through fund value's

house-illiquid kasi ito, unless u will be selling for profit..
kung titirhan mo naman, why rent first?

kanya kanya naman tayo ng need,,so I believe ,,tayo pa din ang magdedesisyon.

[MissChievous]

If wala pa naman kayong dependents, you can skip the Insurance kasi wala pa namang need na magka insurance kayo. Wala pa namang mga babies di ba? Unless you are vying for VUL - mutual funds + Insurance. You can do both if you will pick Buy-Term-&-Invest-the-Difference (BTID). SA BTID, you can just buy a term insurance, a cheap one. Tapos you could buy a house.

Pero, you should also think about your investment. Para sa akin kasi yung house hindi ko pa [textspeak!] ma pe-perahan kaya di ko talaga [textspeak!] kinoconsider na investment sa financial vocabulary ko, asset lang [textspeak!].

[coffee_art01]

Basta find a good location and competitive price. Kung hindi pa kelangan ng house, have it rented. Ang pagbili naman ng bahay eh hindi din basta basta. Kelangan pag aralan ng mabuti. Siguro kanya kanya lang. For now hindi ako macoconvince talaga na bumili ng insurance. Pero meron din ako Mutual Funds. Pero hindi ko masyado inuupdate. D kasi ako interested. Nababagalan ako sa investment na yun.