I've just received the bill for my Valuable Universal Life (VUL) Insurance in Philamlife and my due date is on May 9, 2014. That's next week. It'll be my 3rd time to pay for the premium and until now I feel like I don't know if I really made the right decision getting one.
VUL insurance is a life insurance product with investment feature. It offers both death benefit and investment features. So if you want to get an insurance and invest at the same time, this is the best product for you...That's according to VUL financial advisors/sales agents. They would always use the 2-for-1 selling point as a marketing pitch. Admittedly, I was lured by this proposition and so I easily said yes to the Philamlife agent without any hesitation.
Recently, however, I found a finance blog saying that it's not practical to get a VUL especially if you're still young. That's because the probability of benefiting from the insurance is not that high yet. Also, while it offers a possibility of increase rate of return over a long period, the moment you withdraw it requires you to pay hefty taxes. And then of course the management fees, etc. and other costs that only finance/investment experts can best explain.
But then there are also those who are saying otherwise, that VUL insurance is a good product. The debate actually continues (in most finance blogs) so I don't know which is which, who is telling what. For now, I just can't back out even if I wish to because of the possible consequences that I have to deal with if ever. So i have no choice but to continue paying my premium on a quarterly basis...and that's for 10 long years ahead of me.
VUL insurance is a life insurance product with investment feature. It offers both death benefit and investment features. So if you want to get an insurance and invest at the same time, this is the best product for you...That's according to VUL financial advisors/sales agents. They would always use the 2-for-1 selling point as a marketing pitch. Admittedly, I was lured by this proposition and so I easily said yes to the Philamlife agent without any hesitation.
Recently, however, I found a finance blog saying that it's not practical to get a VUL especially if you're still young. That's because the probability of benefiting from the insurance is not that high yet. Also, while it offers a possibility of increase rate of return over a long period, the moment you withdraw it requires you to pay hefty taxes. And then of course the management fees, etc. and other costs that only finance/investment experts can best explain.
But then there are also those who are saying otherwise, that VUL insurance is a good product. The debate actually continues (in most finance blogs) so I don't know which is which, who is telling what. For now, I just can't back out even if I wish to because of the possible consequences that I have to deal with if ever. So i have no choice but to continue paying my premium on a quarterly basis...and that's for 10 long years ahead of me.
Lessons learned? Don't get into anything that you don't fully understand! Spend time learning by reading or asking the right persons before making decisions. With emphasis on asking the right person! And the sales agent is not, and can never be the right person!
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