Getting Prepared For The Philippines > Life and Other Insurances

Is there advantage on having 2-3 Life Insurance Plan (Whole Life)?

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Just want to ask what everyone's take on this (not to get too personal). I'm set, just wondering if any of you encountered any issue with having multiple.

Art, just a re(tired) Fil-Am:
A 2-3 whole life Insurance Plan? Why ever for? I know something about it, but I just had to find about it again.
Nah, I can't afford a Whole Life Insurance Plan, back then and or now! ::) ??? :o ;)

The main difference between term life insurance and whole life insurance is that term life insurance serves as insurance only, whereas whole life insurance is actually insurance plus investment.

A term life insurance policy has 3 main components - face amount (protection or death benefit), premium to be paid (cost to the insured), and length of coverage (term). The policy expires at the end of the term. If the insured person dies during the term of the policy, the beneficiary is paid the benefit (face) amount. If the insured person is alive after the term (duration) of the policy, no benefit is paid and the policy expires. So in a sense, it is like car insurance, where if you have a six-month policy and you get into an accident during this period, you get compensation from the insurance company. But at the end of the period if no accidents happen, you do not get any money back.

Whole life insurance on the other hand is a form of permanent life insurance, which means that in addition to insurance, the policy also has a savings component. A part of the premiums paid by the insured person goes towards insurance, while the remainder is invested and builds a "cash value". If the insured lives beyond the policy expiration, the cash value is paid out to the insured. The cash value can also be used to borrow money against. The cash value is invested (in bonds and stocks or money-market instruments), and therefore there is a gain. This gain is tax-deferred if the policy is cashed in during the life of the insured. (If the insured person dies, the proceeds are usually tax-free to the beneficiary.)

I have a temperamental antipathy to enriching life insurance companies more than they already are.

The "investment" value of a whole life policy is minimal.  It takes little investment savvy to achieve a superior return elsewhere.

Also, I am a poor sport when it comes to betting my life.  It goes like this:  Me (the insured):  I bet you I'll die during the policy period!   Big insurance company (the insurer):  Bet you won't!   Who usually wins?

To top it off, should one have the good fortune to die during the policy term, there's no assurance that the beneficiary will ever see a dime, especially if the policy is large.  The insurer will subject the claim to microscopic scrutiny and come up with some excuse such as misrepresentation or non-disclosure in the initial application (eg., you never said you experienced feeling faint one day in 1984) and find a way to deny the claim.  The insurer has at its disposal a well-paid army that has mastered the art of ducking and weaving and woe betide those who seek to pit their resources against the insurer.  Who do you suppose usually runs out of money first?

I sold for MONY when I first retired from the military.  If you plan on dying soon by insurance.  If not then invest what you would have paid out in premiums and you will come out ahead.


I feel that insurance is for those who need to leave something to a husband, wife or children who may not otherwise have anything once the insured is gone. I had term insurance when I first married Nila, it ran out years ago and I never bothered to buy anything else because I feel that she will be okay with what I have set up for her, at least I hope so.


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