Insurance Dilemma

[resjudicata]

Hi!

I'm 21 years old as of this writing
I have a VUL insurance worth 18k/annualy with a CI benefit of 600k which I started last July 2019.

I also have a life insurance provided by the company for 600k and an HMO that covers up to 300k for different illnesses.

Should I drop my VUL and just stick with my company's insurance or should I continue?

Thanks a lot!

 

[raisingthedead]

@resjudicata I think of most of company's insurance are in effect if you are still working with them. Coexistent. Try to check if you resign you still have those benefits.

 

[crabbysummers]

@resjudicata check the procedure on withdrawing your VUL, some policies charge u 100% when withdrawing super early so best to keep it there and let it sustain itself..

 

[resjudicata]

Hi! It depends on what you currently have and what you want to achieve. My general advise is for you to continue and add insurance if you're under-insured if budget permits. The rule of thumb for savings and insurance coverage as multiple of your annual income as summarized below:

Emergency Fund - 0.5x, Health Insurance - 2x, Life Insurance - 5x, Retirement Fund - 15x

Normally, the life insurance provided by employers' is not at least 5 years worth and HMO is not at least 2 years worth of your income. CI is on top of HMO benefit in case diagnosed of covered illnesses costing millions. If your resign, your employee benefit will also cease. Also, since your started a VUL, expect that there will be charges when you surrender and worse no return in the earlier years (read the fine prints).

- The Risk Advisor