I Should Have Read the Fine Print

I am very disappointed at myself for being uncharacteristically careless and for not reading the fine print.

I am referring to a "Variable Insurance Package" that I bought from Sun Life.  

This happened around February-March last year.  I already have an existing policy from Philam (I am already on my 9th year on that plan), but I was prevailed upon by the boyfriend of my sister's friend to grant him an audience and listen to the sales pitch he had to make for the aforementioned variable life insurance package.

Despite my busy schedule last year, I listened to his presentation and entertained several other calls from him thereafter.   He was being very pushy so I decided to just avail of the package so I can be left in peace.   He also said that I will be helping him a lot because he really needed to save as much as he can so he can finally propose to my sister's friend.   

I already told this guy that I already have an existing policy and what I need is an investment product, not another insurance policy.  So he offered me that Variable Insurance instrument.  He even measured my risk appetite and told me the salient features of the product, to wit:

1. Make additional investments anytime
2. Choose when and how much to pay your premiums
3. Withdraw from your fund value in case of emergency
4. Increase, decrease or stop paying premiums altogether
5. Enjoy more protection with the availment of additional death benefit option

I remember bullet #4 very well.   These bullets, by the way were taken from the Sun Life Website.   I was pretty confident that the money I paid would be intact and I could just terminate this plan after one year, since I really don't need a second life insurance.  I was just really trying to help, playing both cupid and a good samaritan.

Fast forward to March 2009, I got a call from Sun Life telling me that I have a due premium.   My agent has already migrated to Canada with my sister's friend.   I told the Sun Life representative that I just want to get my money back but she said this is not possible.    I paid an annual premium of P11,245 last year, and out of this amount, only P202 will be recoverable. Sure, P11,245 is not a lot of money, but for someone unemployed like me, that means a lot.  

If you can just imagine how pissed off I am at the situation.   I misunderstood the product.  I didn't read the contract.   I believed everything a sales agent told me. Of course I blame myself for this.   I thought that the product I bought was really an investment instrument with a life insurance rider.   It was the other way around, it is more of a life insurance with an investment rider. 

Given the above, I have two courses of action to take:

1. Say goodbye to my P11,245
2. Continue to pay the premiums so that the fund value of my investment will increase. 

But no, I will not be stupid for a second time around.   Who in his right mind will invest in an insurance instrument given the financial crisis today? Sun Life may not be AIG, but it is definitely not unscathed.  That the fund value of my plan is just P202 today is quite telling already.

So there.  This is a lesson learned for me.  I should not skip the due diligence.  As for being a good samaritan, I will have to remind myself that expecting a reward for doing a good deed actually negates the goodwill.