Buying Another VUL vs Index or Mutual Funds

One argument that I always see online is whether it’s worth getting multiple VUL or Life Insurance policies so I decided to write down some ideas and insights regarding the said topic.

I already have a VUL plan and I must admit that getting another one has definitely crossed my mind. My wife recently asked me about going for it instead of just having her savings in a bank where interest is negligible.

The main reason why we have life insurance for ourselves is because of our family.

In case something happens to either one of us then we can at least leave behind something for our family to keep on living. We decided to get a VUL since we also want to have an investment of some sort which we can use in the future. It can be for our retirement, our kid’s education, or anything we might want or need later on.

Getting another VUL though seems like a waste for me. I’m not even talking about the countless posts I’ve seen that say getting life insurance and an index or mutual funds separately would cost lower than a VUL. I’m talking about preparing for the future ahead. We already got ourselves insured as parents. Now, I think it’s time that we take another step towards actually getting prepared for our own future as husband and wife.

I once saw a video of how most parents are focused on giving the best for their kids which is ideal if you have the resources. It’s important though to prepare for when you grow old with your spouse. Wouldn’t it be better for you and your spouse to be independent and have financial freedom instead of thinking about how your kids will one day repay you for all the best things you gave them? Wouldn’t it be better for them to be able to focus on their success and to keep on reaching for their goals because you as parents are already established financially?

This is the main reason why I think having multiple VUL isn’t worth it compared to just having one and focusing the rest of your money on an index or mutual funds where the sole purpose is to grow your money. There are people who live in constant fear thinking that something bad might happen anytime that’s why they decide to get multiple VUL policies. I really think a good one is already enough. I want to be able to live a life where I can dream of a better future and getting into Index or Mutual funds seems like a better option to make that dream into a reality.

Investing your money in either Mutual or Index funds allows your money to grow and work for you. 

I can’t suggest which one is better but here are some quick tips on investing strategies:

1 Start investing as soon as you can

One regret I have is that I didn’t start as soon as I got my first job. Investing early gives your money more time to grow.

2 Try to get invested as long as you can

The longer your money is invested the more you can earn although it also depends on your goal on what estimated amount you would like to achieve and how long will it take for you to reach it.

3 Spread out your investment to manage risk

You probably already know this one but it’s definitely one key factor to avoid risks. There’s always a chance to lose money if a certain investment fails that’s why it’s important to diversify your money across multiple investments.

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