Monday, May 17, 2021

Never invest in an insurance policy with premium financing

 A FISCA member ask for my views about investing in a policy with premium financing. Here is my reply.

1 comment:

  1. Sibor+0.9%? Firstly the bank is not giving you a very good deal.

    There are bloggers detailing similar leveraged insurance. One got Sibor+0.75% for putting down only $50k and borrowing only $150k i.e. $200k annuity product.

    Another got even lower Sibor+0.5% for putting down $100k and borrowing $200k ($300k cashback endowment).

    Secondly, yeah you have to be prepared to cut loss & swallow the loses if interest rate goes up too high.

    Those bloggers are prepared & they have plenty of cash & other investment assets elsewhere.

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