“Where does life insurance go if there is no beneficiary?”

The following is my answer to a Quora question: “Where does life insurance go if there is no beneficiary?” Should there be no nominated beneficiary for a life policy, the policy pays out to the estate of the deceased, and distributed according to the will. It comes under the administration of the executor of theContinue reading ““Where does life insurance go if there is no beneficiary?””

“Which one is better: a monthly contribution to income protection, or investing the same money every month?”

The following is my answer to a Quora question: “Which one is better: a monthly contribution to income protection, or investing the same money every month?” That depends entirely on your intent, and your need. In the beginning, you need some sort of liability protection, and coverage for loss of income. Pure investment does notContinue reading ““Which one is better: a monthly contribution to income protection, or investing the same money every month?””

“What arguments exist for whole life insurance over term life insurance?”

The following is my answer to a Quora question: “What arguments exist for whole life insurance over term life insurance?” Both whole life and term have their uses. Generally, I recommend whole life when the client is younger. If they can afford it, I recommend a limited pay whole life, so they pay for theContinue reading ““What arguments exist for whole life insurance over term life insurance?””

“Where or how should I invest $500 monthly, at low-risk?”

The following is my answer to a Quora question: “Where or how should I invest $500 monthly, at low-risk?” Even at low risk, you cannot go for the safest since the base objective is to still to have a higher return over the investment period than the rate of inflation. If you cannot match theContinue reading ““Where or how should I invest $500 monthly, at low-risk?””

Things all beginners should know about insurance

Perhaps you’ve read Before you buy: things all beginners should know about insurance by The Woke Salaryman. It is overall a good article, in simple language that helps laymen easily understand. However, I’d like to comment on a particular point of concern: Mistake 3 is itself a mistake. Covering yourself for up to 10 timesContinue reading “Things all beginners should know about insurance”

“At what age should I buy life insurance?”

The following is my answer to a Quora question: “At what age should I buy life insurance?” You should get it as early as possible. There are two primary reasons. The first is that you want to lock in your coverage when you are healthy, before the documented development of any medical condition. Once aContinue reading ““At what age should I buy life insurance?””

“Why do insurance salespeople pitch life insurance as an investment?”

The following is my answer to a Quora question: “Why do insurance salespeople pitch life insurance as an investment?” Whole life insurance is not an investment. A fully paid-up policy may function as a financial instrument, or as a form of leverage, but that does not make it an investment. A way that high netContinue reading ““Why do insurance salespeople pitch life insurance as an investment?””

Some pointers to avoid being pushed or mis-sold an insurance product… (part 1)

It seems I have become a magnet for people enquiring on being pushed or mid-sold insurance products, occasionally getting such enquiries. So I thought perhaps I should write some pointers for customers out there: 1. Savings plans may not be for you Savings plans, though seemingly safe, may not be for you. “But savings isContinue reading “Some pointers to avoid being pushed or mis-sold an insurance product… (part 1)”

“How can life insurance pay out more than the person has put in?”

The following is my answer to a Quora question: “How can life insurance pay out more than the person has put in?” From an individual perspective, the insurer has paid out more than the premium if the claim was early. From the insurer’s perspective, they have paid out one claim for a single policy, butContinue reading ““How can life insurance pay out more than the person has put in?””

“I still need growth on my investment for retirement. Should I avoid bonds?”

The following is my answer to a Quora question: “I still need growth on my investments for retirement. Should I avoid bonds?” That really depends. As you age, and seek growth, you may give greater weightage to equity instead of debt instruments in your portfolio. This should have the involvement of your financial planner toContinue reading ““I still need growth on my investment for retirement. Should I avoid bonds?””

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