@gtboy:
You may want to consider VULs or BTIDs. VULs and BTIDs are equally as liquid as bank deposits but they have greater insurance coverage.
VULs and BTIDs are life insurance plans bundled with savings/investments. In comparison to BPI's savings account with life insurance, you get a much greater insurance coverage and the potential rate of return of your money is better.
One concern of life insurance is that once the policy holder outlives the tenure of the plan, he basically gets nothing. VULs and BTIDs solves that dilemma since if the policy holder outlives the life insurance plan, he still have the savings/investment portion. There are plans wherein he can convert the life insurance coverage to savings/investment plan to further increase his money.
In terms of liquidity, its basically as liquid as bank deposits. You can add or withdraw money from it anytime. Here are some pros and cons though of VULs and BTIDs:
Pros:
*Higher rate of protection coverage and higher rate of potential returns (mutual funds give an average annual return of 12% to 15% a year)
*Very liquid. There is no fixed amount to add (as long as above minimum) or to redeem (as long as not more than the available funds)
*Forced savings and is good for retirement planning or future financial goals
Cons:
*Holding or maturity period. Normally it will take around 5 years before withdrawals can be made depending on payment/savings mode
*Part of the savings goes to the insurance as premiums. Amount of savings/investments decrease since premiums are deducted from it
*If you need a smaller coverage of insurance, you might end up paying too much
However, weighing the pros and cons of VULs and BTIDs to BPI's "free" life insurance, I think that VULs and BTIDs offer much better benefits if getting a life insurance is a priority. But looking at both ends transparently, here are the pros and cons that I see between VULs/BTIDs vs BPI's life insurance perk.
Pros:
*BPI is insured by the PDIC up to P500T, VULs/BTIDs are not
*Savings accounts doesn't require monthly deposits or premiums
*For a very low amount, you can already have a savings account (not sure how much is the maintaining balance of BPI)
Cons:
*Savings accounts are subject to tax, VULs/BTIDs may not (depending on how it is being arranged)
*Rate of return and possibly the insurance coverage of savings accounts is very low. Life insurance is not a business of the bank, its just an additional perk or probably an incentive to entice more depositors
*I'm not so sure about this but I firmly believe that there is no such thing as "free" insurance. BPI may "charge" a small amount from your savings to pay it as premiums
Re: BPI Savings Account with Life Insurance
naa jud diay!
Originally Posted by miramax
I bumped on this blog yesterday Investor Juan: Free Life Insurance with BPI's Get Started Account and it caught my interest.
Reply With Quote
Posting Permissions
