Monday, July 09, 2007

Buy term and invest the difference

COMMENTS POSTED IN MY BLOG:

Take the advice of Mr. Tan by recommending term plans and invest the rest. This is the way to ensure your clients are adequately covered.

Whole life plan deprives your client of adequate protection.This is what is happening in Singapore. Many deceaseds" family are in financial difficulties because their bread winners didn't leave enough. They left their money with insurance agents.Check with the single parent society and they will you the stories.

The insurance agents have a role to play but their interest often comes first. They are greedy, incompetent, dishonest and unethical; this results in many not properly and adequately covered.

That is why AXA, the world's largest insurer, decided to sell ONLY term plans and investment products. That is their belief that it is the only way to address under coverage and also to remove the conflict of interest.

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REPLY:

"Buy term and invest the difference" is suitable for the well educated and financially savvy.

For those who are not so familiar with investments, a low cost traditional product may also be suitable. They will benefit from a low cost product, rather than a high cost product.
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4 comments:

Khiat Han Hwee Adrian said...

Buy term, invest rest concept is not as simple as one may thought.

1) Term insurance often ends at specific age. We have to ensure a separate self-insurance fund is available when the cover ends.
2) When ones accumulate through investments, discipline is usually compromise. Many will tends to spend the money before they accumulate to a sizable amount.
3) Regular reviews are crucial in adjusting the insurance cover and rebalancing of the investment portfolio.

For buying term, investing rest method, it will be good if there is someone following through with you regularely.

July 10, 2007 12:12 AM
Anonymous said...

Have you heard of whole life or almost whole life term plan? Is 100 years old long enough? That is the problem insurance agents only sell what their company has. If they don't have they tell all the limitations of the plans that don't give them good commission. Buy a decreasing term to expire at 100 years old.
Find out more from other companies.

July 11, 2007 1:04 PM
Thomas Phua's Blog said...

Can you advice which company gives decreasing term expiring at 100?

This is interesting because I sure die before 100, maybe before age 65 I will go already.

In any case, if such plan premium low, sure good, which insurer? Can advise?

July 11, 2007 9:33 PM
Anonymous said...

Since you asked here you get.
See AXA financials at cecil street.
All the best. This is way to go for adequate protection. Don't waste your money on those with profit traditional insurance plans. They are obsolete products. Whatever left of your money get one good and qualified financial planner to design a plan for wealth accumulation. Yes, you need an the planner but also a plan that details out everything from where you are to where you are heading. So you won't get lost along the way with the signposts in place. Just hope all of you get wiser and seek proper adviser to manage your hard earned money and don't leave it in the hands of insurance agents who disguise as sheep.

July 11, 2007 10:50 PM

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