Why I have two life insurance policies (and why I want to have more)

Sometime in April, I posted a blog entry detailing why I got a life insurance policy (and why I think you should, too). This time, I'll tell you why I actually have--not one--but two life insurance policies in place (and why I plan on getting more for myself soon).

The short answer--I want more money. Because the life insurance industry in the Philippines has evolved so much over the last five or six years, it's now more attractive to incorporate investment-based life insurance policies in our long-term financial planning.

It was in March 2008 (when I was 22) when I decided to get my first investment-type life insurance from Sunlife. Because I was happy with how my money was making profit for me--while I enjoy many other living benefits--I decided to get another one last year.

Together, the two life insurance policies are where majority of my income from work as a writer goes nowadays. It feels good everytime I make that premium payment knowing that I'm doing something good for myself; that the people who would benefit from these investments are myself and people I love (the beneficiaries of the plans).

In that last blog entry, I said the main reasons why I got my first life insurance policy is so that I can have a sense of independence; feeling of security for myself; economic stability for my loved ones when I'm gone; and the knowledge that my money has somewhere concrete to go to.

Now, here are the reasons why I got another investment-type life insurance policy from Sunlife:



1. The more money, the better
          Because the life insurance policies I have come with investment aspects, it allows me to invest in stocks, mutual funds, bonds, etc. My first life insurance promises millions of pesos when I reach retiring age, but the second policy, simply put, allows me to invest more which, in turn, should give me more money when I do retire (hopefully, not later than 45 years old). I never mind managing more money. Bring it on! :)

2. For withdrawal purposes
          My policy in Sunlife is insurance, investment, and savings all rolled into one. That's because, at any point in the future, I am allowed to "loan" or "withdraw" a certain amount from it and still have the life insurance policy--with all the benefits--in place. While I am not a big fan of loaning, I told myself that now I can at least borrow from one of the two policies--if and only if I really need the money--while leaving the other policy untouched, allowing it to accumulate more interest over time.

3. More policies, more beneficiaries
          With my first life insurance policy, I was able to name one primary beneficiary and one contingent beneficiary (the people who would receive a certain amount of money should it be my time to go). With my second policy, I was able to name two more beneficiaries. I know someone who has seven children so he took seven life insurance policies and named each of his children a beneficiary of each of the life insurance policy. Fantastic! :)


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