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?””
Tag Archives: 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?””
Understanding Whole life insurance
When buying personal life insurance, you’d be introduced to Term life insurance, Whole life insurance, Endowment/savings plans, as well as Investment-linked policies. Each product type has its purpose, advantages and disadvantages. So what is Whole life insurance? Whole life insurance provides coverage for the life of the insured. In addition to paying a death benefit,Continue reading “Understanding Whole life insurance”
Understanding Term life insurance
When buying personal life insurance, you’d be introduced to Term life insurance, Whole life insurance, Endowment/savings plans, as well as Investment-linked policies. Each product type has its purpose, advantages and disadvantages. So what is Term life insurance? Term insurance is life insurance that provides insurance coverage only for a fixed period of time. An exampleContinue reading “Understanding Term life insurance”
Saving $100k by 30 years old?
Perhaps you’ve read Saving $100K by 30 Years Old… Is It Even Possible? A lengthy read but worthy to know that it’s possible. But here are my thoughts: In all honesty, one would probably save like this when he plans to get married. Bootstrap to save 50% of take-home income. And most of that savingsContinue reading “Saving $100k by 30 years old?”
