Monday, August 18, 2008

Whole Life by Limited Premium

Hi Mr. Tan,
I understand that Buy term and invest the rest strategy and I believe this strategy is better, but would it be risky to buy all insurance on term insurance? Shouldn't one buy at least one small whole life insurance to hedge as well as to keep it for life. Term insurance do not cover for life, if so , it would be very expensive as well.

Should the term insurance lapse for any reasons, the person would be without any insurance coverage. Shouldnt one buy one limited whole life payment for WL, like what you did?

REPLY
Limited payment whole life has high expenses and does not give value for money. When the Term insurance expires, you will have sufficient savings (if you have invested the savings) and you do not need life insurance any more.

I bought whole life insurance many years ago, but they are not necessary for me now. I get a poor return on these policies. Some of them have still not reach the breakeven point after more than 10 years. Anyway, they represent only a small part of my total savings, so it does not matter to me.

Read this FAQ:
http://www.tankinlian.com/faq/savings.html
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2 comments:

zhummmeng said...

Mr., don't become a victim of this great conspiracy by insurers and their agents.They now cook up and even have you beleive that Limited WL is a hedge against lapse and that you need it for whole life.
Go to the MAS website and see for yourself the lapses and terminations.The policyholders didn't die prematurely but their policies did. How many policies are kept till old age? Are you one of those statistics?
Let me tell you the idea of WL or you need WL in old age is an unethical conceptual selling ploy to frighten you to feed the greed of the insurance salesmen. What you really need MOST is having large amount of insurance when you are bringing up your family.Only term can fulfill this efficeintly for the ordinary man in the street. And what the ordinary man in the street really needs in old age is LARGE AMOUNT OF MONEY and money that is more flexible as self insurance and retirement fund and not WL which gets very expensive and erosive.If you worry about health the right one is a H&S medical, cheap and good. Planning is VERY important.Those who don't plan need to worry and it would be from the frying pan to the fire if they think wholelife product is a cure all products. Please don't let the insurance salesmen plan for you; they are actually planning for themselves.
Lately these agents are telling you can have a little bit of WL and the rest terms. Very clever and cunning these insurance salesmen. They know they are potential defendants in court if they don't meet your needs FULLY.You see they can't live without the WL with high commission? They actually shouldn't have come to this business if their intention was to fleece and bullshit the consumers. Now the consumers are getting savvy. They can see what term can do for them and what the insurance agents are up to.
Whole life products mean low protection and low return.Without planning nothing can help with discipline and committment.
Beware of the chameleon insurance salesmen.

August 18, 2008 7:10 PM
zhummmeng said...

The key to providing for old age is planning.At old age risk management is having a health insurance and money and not a wholelife or a CI WL insurance.
This is ideal and more flexible.Although at old age health is at greater risk but not necessary so if you have a risk management plan in place.. Insurance CANNOT reduce the risk .Health risk management should revolve around healthy life style and dietary and exercise regime. Illness may or may not happen and having a wholelife plan in anticipation of ill health is a waste of money and may be a futile anticipation. The best approach will be , having a low cost H&S insurance and plenty of money as self insurance. This is planning and should have been in place from the outset. This is the reason why I strongly urge that consumer MUST get a qualified , honest and COMPETENT adviser and Not an insurance salesman. Planning is the key to a successful financial future. Insurance Salesmen cannot plan for you but instead screw up for you by selling whole life and endowment products for their own benefit. MAS statistics attests to that. Whole life products are bad as protection and saving vehicles .This is why I find insurance salesmen and women most despicable, whose greed and dishonesty have ruined many a man in the street.

August 19, 2008 12:48 AM

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