We wanted to invest for our baby's future. We don't have much, but with whatever little that we have, we wanted to set aside something for her college or whatever, it depends. But we don't want to get an educational plan. In my family, we used to have one for my brother, but the company had gone bankrupt before my brother graduated and we were never refunded for what we spent for him. And it was the biggest educational plan company in the country before.
Additionally, most education plans nowadays do not include inflation. So by the time that our baby would be in college, the value of the plan would already be so low.
Instead, we opted for a plan that will give us flexibility. We wanted a plan that allows maximum interest based on market rates, was withdrawable anytime, and is also covered with life and accident insurance.
And we found one, the Peso Affluence Builder by Manulife. It is payable in 10 years and we have the option of being able to withdraw it anytime we needed the money. Manulife is also a very stable and multiawarded insurance company so we trust them. Their agent is also very accommodating and helpful.
There is one glitch however. I am not sure whether we were not able to fully explain this to our agent, or she did not understand what we meant, or she just covered the obvious. You see, we thought that this plan just had the insurance rider without having to pay for the premiums, just like our bank account. But as it turned out, part of our first three years of payment will go to the payment of the insurance premiums and only a small amount will be allocated to the savings. In the succeeding years of payment will be the time that the company will invest all we pay in full.
Oh well, it is rather too late when we really understood this. It is still a good investment, just not what we were looking for.