Saturday, November 24, 2007

Buy term first

Hi Mr Tan,

I am enquiring about term or life insurance. I saw your article on "Take a term insurance and invest the rest". How should I be going about it then?

I am a non-risk taker, and want to policy which provide comprehensive cover. What is your recommendation?


I suggest that you buy term insurance first. You can save your money in the bank and invest it at a later date. I shall be recommending some low cost investment funds in a few month's time.

You can get the indicative cost for the term insurance from this FAQ:


Anonymous said...

In the face of inflation going as high as 5% not taking risk your investment is doomed because there is NO FINANCIAL INSTRUMENT available currently that can give a return of more than 5% without or low risk.
You need to assess yourself truthfully and realistically. There is no free lunch. Everybody is risk averse, this natural; no or low risk high return. Where got this, lah? If you are very rich you can have this attitude.In the first place one becomes rich because of taking taking risk.
But if you are poor and you have this attitude you are condemned to working very hard to save a lot because you don't allow your money to work hard. You are trading time for money.
The insurance salesmen love people like you becuase they can sell traditional products with high commission to you. Whether you have enough for retirement it is not their business to convince you. YOU WANT, YOU DECIDE they sell you. What planning?

Anonymous said...

Mr. Tan,

Really very looking forward to your recommendation on low cost funds. Hope that can read those as soon as possible.

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