I DID IT! My Insurance & Investment Policy from Pru Life UK

I did it!

Finally, I received the copy of my insurance & investment policy last night.

I am really glad that I have taken a concrete step towards a more favorable future when I grow old or some consolation to those I will leave behind when I die.

In this world nothing can be said to be certain, except death and taxes.

- Benjamin Franklin

After ample consultations with friends whom I consider good with their finances, I availed of a variable universal life insurance (VUL) plan from Pru Life UK. Basically, it is an insurance plan with investment. In a VUL, your money does not only pay for the insurance premium but also get invested.

I preferred VUL over life insurance because I figured that if I suddenly die, I have no clear beneficiaries since both of my parents already passed away and I have yet to get married.

Good thing for me, a friend is an authorized financial adviser of Pru Life UK. He was able to offer me a VUL policy customized to my financial capability.

For a monthly premium of Php 2, 716.33, payable in 10 years, I have a permanent disability/accidental death coverage of Php 900, 000. The policy also offers Php 1,000 hospital allowance per day.

But what I am really excited about is that the money I pay is invested by Pru Life UK to their equite fund and it can grow up to as much as Php 1.4 Million. Although that is looking much farther down the road, I think that amount is more than enough to take care of a 65 year old me.

I also registered my policy to Pru Life UK's online facility so that I can track it anywhere.

My next step to financial freedom is to get a health insurance.

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Insurance & Investment To Consider

As planned, I met my friend who is a licensed financial adviser as my first step to financial literacy.

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Here's what transpired and my corresponding thoughts...

Prior to our meeting, I shared to him that I may be able to save 3000 per month based on my current salary and expenditures. So, he discussed with me an insurance & investment plan based on the amount I said I was capable of.

The benefits of the insurance policy he offered included if I die by accident or if I get permanent disability and hospitalization.

But what I was really interested to was when he explained that if I will be able to save and invest Php 3000 per month from 37 until I was 60 years old (totalling to Php 828,000), I will be able to receive a little more than 1.5 million in return. This was only a projection, considering 10% interest per annum and compounded continuously of the money I've invested.

Wow! To me that would be a lot. The most cash I have seen in my entire life is Php 350,000. What a nice retirement bonus! If I'll have my way, when I reach 60, I would just be blogging and if physically possible play badminton. My mind was in overdrive on how I can come up with the money to invest consistently.

Of course, the bubble burst immediately. In life, nothing is certain but taxes and death. So, inquired if I miss to pay for the monthly investment. He said that I will be given 30 days to pay up which means I have to pay double in the next month. And when worse comes to worst, I will be able to withdraw the money I invested with some deductions.

There's a good chance that I will sign up for this insurance and investment policy.

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One Small Step to Financial Literacy Hopefully Will be A Great Leap Towards My Financial Freedom

I have an important appointment today with a licensed financial advisor, who fortunately came from the same high school. I am hoping this could be the Apollo-11 moment of my life.

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After being amused by the passionate discussion about the cons of Multi-Level Marketing (MLM) Schemes in Facebook, I've realized one important aspect of my life that I've given less attention to - Financial.

I know of the importance of savings and monitoring your expenses. I have some savings (but that is for getting married and starting a family of my own) and I have monitored my expenses daily since 2008.

But after that, I have no idea on how I can better prepare myself for my future and that of my future family.

As if by good coincidence, financial literacy has been a buzz word in our alumni org's website.

I took that to mean that the universe is telling me that the time is now for me to start my financial literacy and work towards financial freedom.

I am looking forward to my meeting later. Hopefully, I do not get nosebleed from discussions on investments, insurance and whatnots.

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