Best Term Insurance for smoker w/ no dependents

[sara1985]

Hello everyone.

I'm 27/single/self-sufficient and currently reassessing my finances rigorously as a beginner since I just revived my career. Relearning finances as well. No plans for family etc in the next 5 -10 years (if I'll push it haha)

I just found out that VUL isn't the soundest decision (but I've already paid mine for 4 years [at 6k quarterly since I'm a smoker and an adrenaline junkie] and lost 65K at current cash value) and I wanted to opt for a term insurance/critical illness instead to lower costs.

I've read in previous posts that VUL aren't convertible so, best route should be getting the term insurance before "cancelling" my VUL and in case I get denied, I'd still have insurance.

Question 1: I am looking for at least 1M coverage. Do you guys have suggestions which ones would be the best fit for me?

Question 2: Am I on the right track?

Question 3: Is it worth it to cancel my VUL plan despite the loss in value?

Thank you for all the advice and suggestion anyone could provide.

 

[andrew923]

@sara1985

1. Since you do not have any dependents yet, though term insurance is cheaper, I suggest getting an HMO and/or Health insurance to cover for hospitalization expenses and critical illness expenses.
2. You are correct on your strategy of waiting for a replacement before cancelling your current coverage as the your lifestyle can cause an increase in premium or worst get denied.
3. Best to compare your VUL to other products, compare it with other offers to be able to make a more objective decision.

 

[tbarjr]

@sara1985 Tingin ko the best din sayo yung nakafocus sa critical illness.

Try niyo po magpa quote ng ACP100 sa AIA or AXA flexiprotect na may 56 CI na riders. Also, mababa po ang 1m coverage. 24M ako around 19k annual lang sa ACP100 na 1m coverage. Pero feeling ko kulang to in the future kaya kukuha rin ako ng flexiprotect na 1.5m coverage.

Also, tigil mo na yang VUL. Sayang binabayad mo sa management fees. Madali lang naman mag invest sa low risk investments eh.

 

[caterpillar5]

@sara1985 Your steps are correct. As to what best insurance to get, go to each company's term insurance page, they have calculators naman. Now, how to get one is tricky. Do you want to talk to a stranger or to your agent friend? What I did, checked my FB friends who are agents and picked one who I think will respect and not push VUL on me.

Remember, term insurance is not going to save your life. You have to be critically ill or some late stage to get the lump sum otherwise, this is for your dependent, when you die. As one advised, until you have dependents, you most likely need HMO.

 

[divinemercypilgrim]

@sara1985 If you’ve already paid for 4 years, compare mo yung premium charges vs the cost of getting a term insurance policy. Some VULs give you the option of paying only the cost of insurance instead of the entire premium, so just pay the minimum amount to keep your policy in force. When i checked mine kasi, at year 6, the cost of insurance on my VUL was about the same (slightly less actually) than the premium on a new term policy.

Usually sa policy contract may table doon of premiums then there’s a column called charges.

 

[maverik379]

@sara1985

1. Prioritize Term HMO/Medical Insurance if you have no dependents. Term Life/Accident CI may come afterwards.

 

[hdelaluz14]

@sara1985 I think the 1st thing you have to do is read your VUL policy contract. How long is the payment? You said you're already at 4 years. You might want to check how long the paying period is. There are some vul products that only required paying upto 5 years or even 1 year. If you can reach out to your insurance provider, that would be better. Make them explain everything in your contract since surrendering your insurance this early may lead to more loss. Look for "add-ons" that are not part of the basic plan and don't contribute to your fund value. Remove them if they're too much to pay. These add-ons can be some critical illness coverage with a premium that renews every few years.

Personally, I wouldn't recommend surrendering your VUL. Just leave it as is, remove the add-ons and just pay the minimum when the fund value becomes too low. If provided, transfer your fund to a more stable fund like bonds. You will still have your insurance coverage with minimum cost.

If you want to get another insurance that is not VUL, you should try ones that are focused on health or guaranteed endowments.

Also you need to understand term insurance. As far as i know, term insurance is not a lifetime coverage. It is better to choose an insurance policy that is for whole life. Yes term insurance is more affordable but personally I wouldn't recommend it for long term.

 

[simsodep8388]

@sara1985 Question 1: I am looking for at least 1M coverage. Do you guys have suggestions which ones would be the best fit for me?

If kaya ng budget, 20 years to pay lang covered ka na for 1M coverage, premium would range from P20K to P25K per year.

Ok din naman ang term insurance pero you'll pay up to age 65, covered up to age 65 lang at less comprehensive ang coverage compared to whole life traditional plans.

Question 2: Am I on the right track? - If ang goal ay to save on premium for insurance/protection and invest sa preferred mong investment vehicle, answer is yes.

Question 3: Is it worth it to cancel my VUL plan despite the loss in value? - Mas maganda na magdecide if you will still cancel your insurance plan kapag may kapalit na or naapprove ka sa another insurance plan.

 

[bymay]

@sara1985 If I were you, your best move is to keep your VUL policy and just pay for the admin and insurance charges. Check with your insurer on this exact amount so you’re guided properly. Doing so is like having a term insurance only. Whatever # of variable units (or shares) your current policy have shall remain - of course the value shall change on a daily basis based on prevailing market conditions.

Re-applying for a new insurance means your premium will be based on your current age, health status, nature occupation and lifestyle.

 

[shiningbrightly318]

@sara1985 I have sent you comparative table of VULs vs Term health insurance vs whole life health insurance also the lifetime charges in VUL. Please check your chat request po. Thank you