Hi looking for tips

[happyhorsefeathers]

Hi! Im so new to getting a policy myself. Im already 29 years old living in a community and family where financial freedom isnt that rampant. Im slowly getting into gaining independence. I am now fully aware that one of the steps would be getting myself insured but know very little about it. I basically taught myself through youtube videos, friends' testimonies, and forums. I have chosen VUL. I already talked to a financial advisor about this and she created a policy for me. I looked at it and the premium is 39k (not including riders) annually with a face value of 250,000. While my friend had a premium of 11k with a face value of 500,000 also a VUL from the same company.

She promised me that its considered 500,000 since the market price will go up. Is there such a thing? Im really confused. I dont want to buy anything and to commit myself into paying it for 5 years. I just have doubts and the FA seemed to be in a really persuasive for me to take the policy. I hope you guys can help. Thank you.

Ps. The group doesn't have posted rules so please tell me nicely if this post isnt allowed. Thank you in advance.

 

[crabbysummers]

@happyhorsefeathers Your policy is actually expensive for the coverage you are getting. There’s a guide currently posted in r/phinvest to give you an initial assessment if a VUL is really for you.

It’s great that you are asking for other opinions before diving in. Also, it’s advisable you accomplish an emergency fund first before getting an insurance but if your budget permits, get insured while building your emergency fund.

edit: here’s the link

 

[happyhorsefeathers]

@crabbysummers Thank you will look for that thread.
Yes, that's what Im planning to build both (insurance and emergency fund) at the same time. Thatnk you so much.

 

[crabbysummers]

@happyhorsefeathers i added the link to the thread on my comment. It’s a good starting point.

 

[happyhorsefeathers]

@crabbysummers Massive thanks! I'm really lost with this. This is really a big help!

 

[jchardy]

@happyhorsefeathers It's quite expensive IMO. My 50-year old Mom has 42k premium with 500k face amount and 500k CI. I have 36k premium with 1.75M face amount and 1.75M CI, though I started when I was 26. So I think what your FA offered is quite expensive, unless there are super mega perks the go with it.

 

[happyhorsefeathers]

@jchardy As Ive said, Im really new to this but can they do that? Is it legal by law and/or allowed by the insurance company for them to put a premium like that with very little face amount. Thank you! That's whaf my instinct tells me with this policy.

 

[claytoncf]

@happyhorsefeathers That policy is more on investments with minimum insurance coverage of 5x your annual premium. For first timers, I don't recommend that and suggest to get one with a higher coverage instead (either VUL or Trad). 3M term insurance starts at only 12k annual premium.

 

[happyhorsefeathers]

@claytoncf Thank you.