I invest a lot in insurance (aside from jewelry, that is). It’s a form of “forced saving” for me and I like it that insurance products nowadays have more “living” than “death” benefits. This means that there are benefits you can enjoy while you are living, unlike traditional insurance products before where only your beneficiaries will benefit from it.
Just recently I purchased Sunlife’s Maxilink Prime variable life insurance policy.
As a variable life insurance, it has living benefits equal to the value of the fund, which accumulates as I made my premium payments. Meaning, my premium payments are used to pay part of the insurance and part of it is investment in my chosen investment scheme to earn the living benefit (or the “fund value”).
It has a fixed payment period (10-years) which I like because it means I only have to save up for a fixed term to enjoy its long-term benefits. The fund value about 10 years from now is projected to be at about P300,000.00, but if I will choose not to get the money immediately after I have completed the payment plan and let it stay in the fund for other 10 years, then I will have about P500,000 by the time I hit 50! And my total investment is just P240,000, to be paid over a period of 10 years. Not bad, isn’t it?
And aside from being investment plan, it also has a life insurance component that will work if something happens to me. Ain’t it a great product? How about you? Are you already covered by an insurance? How do plan for your future?