Sometime last year, I decided to start learning about finances and investing. I started learning by watching YouTube videos about financial literacy and reading financial-related sites. Although I can’t say I am completely well-versed now ‘coz really, I still have a lot to learn, I can say that I have learned some of the basic things already.
Before all this, a friend of mine was already advising me to get a life insurance, so I started saving to have one as soon as I can. Thankfully, I was finally able to have a VUL (Variable universal life) earlier this year. I actually got a day after my 29th birthday, so to me, it’s my birthday gift, but it wasn’t processed until early January due to the holidays.
LIFE INSURANCE FOR A CHRISTIAN BELIEVER
Before I proceed any further, I have to mention that there are some co-believers I know who do not believe in getting a life insurance. Some believe that getting one is like doubting God’s promise to “supply all our needs according to His glorious riches in Christ Jesus” (Philippians 4:19). Is it really so?
I am not here to start a debate about whether it’s good for a Christian to get a life insurance or not but here are the reasons why I decided to get one (and hopefully, we can also have one for Dane soon). To me, it’s not doubting God’s capability to help my loved ones even if I’m no longer alive – it’s more about being able to still help them through the life insurance. It’s accepting the possibilities and preparing for it.
-I am a breadwinner. I send regular financial support for my family, I’m sending my sister to college and I’m helping my brother’s tuitions when my budget isn’t too tight. We have a son that we need to raise also. We don’t know when our lives end but when it’s my time, this insurance will be able to still send Nate to school even if I’m no longer here.
-Life is short, death is inevitable. Since I work from home and I don’t get any benefits, this insurance will be able to still help my family. Also, we decided that I get an insurance first because Dane has one at work. But of course, you can’t really rely on your insurance from work, can you? When you retire, you can’t take your insurance with you.
-VUL consists of both a life insurance and an investment so we’re looking to use the ROI as help for Nate’s future schooling in college.
VUL vs. TERM INSURANCE
There’s a never-ending discussion about which one is better – a VUL or a term insurance. Both VUL and term insurance, according to the online forums and websites I read, has its own pros and cons. For me, I have decided to get a VUL mainly because there’s an investment that comes along with it.
For those who don’t know, a VUL or Variable Universal Life Insurance is a:
“form of cash-value life insurance that offers both a death benefit and an investment feature. The premium amount for variable universal life insurance (VUL) is flexible and may be changed by the consumer as needed, though these changes can result in a change in the coverage amount. Like universal life insurance, variable universal life insurance combines a separate savings component with a separate death benefit component, allowing for greater flexibility in managing the policy. Premium payments are paid into the savings component, which, for variable universal life insurance, consist of separately managed accounts also referred to as sub-accounts. Each year, the life insurer takes what it needs to cover mortality and administrative costs. The rest remains in the separate accounts.” (source: Investopedia)
MY SUNLIFE VUL
Late last year, I had a quick chat with my cousin who works in SG. We talked briefly about investments and I’m glad we discussed life insurance. She mentioned that her older sister knows someone from Sunlife who can help me with my plan on getting a VUL.
Since I already intended to get a Sunlife VUL, I just contacted my cousin – her older sister – and told her about my plan on getting an insurance by December 2017 during our vacation in Tagum City. So, my cousin has already discussed it with her former classmate who’s a financial advisor for Sunlife.
My coverage includes a death benefit, accidental death benefit, a hospital income if I suffer an injury or sickness resulting in hospital confinement, and total disability benefit. When we met, she just presented the coverage and I signed the paper works. Then, the policy information was just sent to me via mail. So now, I just have to pay my contributions. lol. During paydays, I take part of my pay for my VUL contributions so it won’t feel like it’s a huge chunk of payment taken out when the payment schedule comes. I plan to pay quarterly (actually, the next payment is coming up very soon, lol).
I’m glad I finally got a VUL, Dane and I are one step closer to our dream of financial security. Hopefully, with God’s help, we can get one for him soon and then, little by little, we’ll cross out the items on our checklist to financial freedom. 🙂