Wednesday, September 17, 2008

Do you need life insurance for the whole of life?

Do you need life insurance for the whole of life?

http://www.tankinlian.com/faq/age65.html
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2 comments:

zhummmeng said...

No, no one needs to keep an insurance for life for risk management unless for other reasons like legacy. If one has a whole life policy, by 65 years one has to make a decision whether to carry on because it is going to be expensive and mortality charge will increase exponentially and not linearly.Your cash value will be eroded.
If one needs money for retirement cash it out.
If it is for legacy cash value is no longer important to the insured.
If you want the best of 2 worlds, cash out some and sell it to your children as investment. Or sell it as life settlement to a second hand life insurance broker and get more cash value than what the insurance company can give for converting to annuity.
Anyway, whole life is a dumb product as a protection and saving vehicle. You are short changed in many ways. Some claim that it forces you to save .If you think this is true you have fallen into the trap of glib tongue insurance salesmen.
Discipline isn't from the product. It is from your need, goal and desire.
An example to show it is not the product is the CPF. Isn't CPF saving under lock and chain? Yet there are people who can unlock with ingenious way; cash back, top up etc.Isn't CPF meant for retirement, for members' good?
If possible there are people who want CPF to release it to them . They are willing to sacrifice their retirement because they don't believe it and because they don't plan
This shows discipline isn't from the product or the vehicle. It is you and because you have a plan.
So don't fall for the argument that WL is needed for whole life and a good forced saving plan. Another evidence is in the statistics from MAS. It shows less than 5% keep it to 65.
A real rip off if you fall for a lousy product that you THINK you want TO KEEP for whole life, you will disappoint yourself when time comes to make that decision. By that time you will also realise that you lost so much time for a lousy product and which you could have gotten better coverage and return from buying term and invest the rest strategy.
Think carefully why insurance agents are so keen to sell you wholelife.It is NOT that they care and love you. Let me tell you.They love themselves, the commission and also to qualify for mdrt, cot that they stoop to anything, lies and unethical means, to sell a lot of whole life with high commission at the expense of your needs and interest.If they help you with adequate protection and high return they will have difficulty qualifying for mdrt or cot.Simple and common sense they earn less . If they earn more it means less protection and low return for you .
Cost and return have inverse relationship ,right? You see the picture?. You see why insurance agents bluff you about WL. The truth is there is more money in the WL for them.

September 17, 2008 12:34 PM
Thomas Ben said...

The whole of life insurance UK policy will help your family in the event of loss throughout the whole life financially. It is advisable to policy seekers to go with swift life insurance which helped me in choosing a plan and reliable service.

October 07, 2019 7:56 PM

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