Monday, November 14, 2005

Variable Universal Life Insurance

Finally, I received some word back from One National Life Insurance that was bought through a representative from the MONY group. I went through the medical exam a few weeks ago, that consisted of loads of medical history inquisition (:D), a blood test (twice because I'm supposedly hard to draw blood from), and a urine test. I guess they didn't find anything exciting about me because I got the standard rate for the variable life insurance.

The monthly payment is quoted at $ 96.00. This rate will not change with age or medical problems in the future ( which I know there will be loads of, with the way things are turning up). The money will be tax-deductible and will be invested in a few mutual funds or annuities. I don't have the list of investment options yet. If the investments do well, you can opt to pay for the insurance premiums with the profits you make from the investments. The principal amount of the balance would be available for withdrawal at any time. The growth of the money in the account will grow tax free until, of course, you take it out.

I wonder if it would be a wise option to use or view this life insurance account as a forced savings account that has a growth feature with compound interest with the benefit of having your life insured for $250,000. But then, I've heard that this is not a very wise thing to do as well.

I haven't been able to update frequently during the last week due to this week being the exam week. Have exam on this tuesday and wednesday..I really hope I pass!

Also, I found out today that my work only pays for $1,500 per fiscal year for tuition reimbursement!!! That's pretty low. But then, it's better than nothing!