Renew Term Insurance or stick to MRI?

[88lance]

Need advice

Hi, i recently got a property with an mri tied to it.
I already have a term insurance for 15years but unfortunately I wasnt able to change the bene to the bank when I was applying for the house loan.

Should I renew my term insurance (15yrs) of 12k/yr (+100 or 200php every suceeding year after) with face value of 1M w/CI/ADD/(one more rider which I forgot)

Or terminate it by not paying the premium this year since I have MRI which also covers 1M for the loan.

It feels like Im paying double for the same thing that I want to cover (house)

Background: 31y/o F, Married w/o kids

 

[shiningbrightly318]

@88lance The MRI will just serves to pay your house loan. The question is how about your beneficiary? Would it be okay na wala sila matanggap? Also your term insurance will also pay for the estate tax (kung sino pagmamanahan mo ng bahay).

TBH come to think of it medyo lugi yung term insurance na may CIB kasi it increases every 5 yrs (both term and CIB). In Sun Life meron term insurance called Sun Life Assure in which you can claim 100% habang in sickness ka pag diagnosed ng Critical Illness. OR switch to whole life health insurance with comprehensive critical illness coverage na may limited payouts.

Also since you are married, do you have plan to have kids in the future? if yes pwede na din pamana mo na sakanya. OR get endowment traditional plan for supplemental educational fund for baby.

All I'm saying is there is no "too much" insurance as different products target different personal/financial milestone. The question will be syempre just get kung anong kaya mong bayaran as insurance shouldn't be an expense but a security blanket for the unknown.

 

[88lance]

@shiningbrightly318 Hi, I appreciate your response. I had a VUL from sunlife before but I terminated since I switched my finances heavily on real estate side but Im gonna check that one. I didnt like whole life insurance because of its cost which is pricier than term.

Does estate tax apply to married couple? My spouse will manage it if Im gone..

We are not planning on having a kid since Im in sandwich generation and still assist (not a breadwinner anymore) my family with the finances of our elderly.

Nanghihinayang lang talaga ako now since I wasnt able to change my bene to the house loan and feeling ko naddoble yung "insurance" ko to pay off the bank.

Btw, house loan is at 10yr term din which is just 2years behind the commencement of my term insurance.

Is it still possible to get a term insurance at my 40s? (If buhay pa ko before that)

 

[shiningbrightly318]

@88lance

"I didn't like whole life insurance because of its cost which is pricier than term."

> On the long run, your VUL is still pricier. You know why? Because it's NOT limited payout. It will still depend on your FUND VALUE assuming that the stock market is doing good (unlike now). Also comparing VUL + CIB rider VS health insurance with comprehensive critical illness, CIB has only limited coverage of illness and it increases premium every 5 years VS Health insurance covers 114 critical illness. So question here is, how will cover your health in the future? HMO + Philhealth is not sufficient to cover 2-3M cost of hospitalization of critical illness/cancer/etc.

"Does estate tax apply to married couple? My spouse will manage it if Im gone"

> If the house & lot was under the name of the couple and only one is still alive, he/she doesn't need to pay the estate tax YET. If both are deceased then the beneficiary of the title will need to prepare for estate tax. If the beneficiary cannot pay, then the lot will be under the estate.

"Nanghihinayang lang talaga ako now since I wasnt able to change my bene to the house loan and feeling ko naddoble yung "insurance" ko to pay off the bank."

> There is no such thing as nadoble ang insurance to pay the bank. In case of death and paying of house loans, the bank will only get the remaining unpaid balance then the rest will be given to other primary beneficiaries listed.

"Is it still possible to get a term insurance at my 40s?"

> If for the sake of MRI, Sun Safer Life is the best choice and can be issued up to age 64 for both smokers & non-smokers.

> If for the sake of health insurance we have TERM Sun LifeAssure which is issued up to age 60 for both smokers & non-smokers.

> For whole life health insurance we have Sun Fit & Well Basic/Plus/Advantage which is issued up to age 50 for smokers & 60 for non-smokers (premium increase if with pre-existing condition & age)

I hope your FA should have discussed this all and given the insurance product fitted for your needs and fit with your budget too.

 

[bob999]

@88lance Hi. Don't terminate your term. . Tuloy mo lang.. hindi sayang yan.. walang sayang na insurance .. lalo pa ngayon, ang dami pa nating hindi alam ang lalabas na effect ng vaccine... so better may protection ka..

Im an agent of one of the top companies.. i will not tell you to choose this or that.. halos parepareho lang lahat yan..

I will just tell you .. kumuha ka lang ng insurance policy kahit sinong company pa yan.. lahat yan ok...