Paying $2K + for your Life Insurance? Here’s a cheaper alternative
April 1st, 2008 | Published in Protecting
This is a blog post that we sent out to our e-Community members a week ago, on where they can get the best deal from their insurance!
Enjoy,
Winston
Do leave me your thoughts.
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I want to bring to your attention a really great insurance set up suggested by Retired NTUC Income CEO, Mr Tan Kin Lian, on his blog - http://tankinlian.blogspot.com/2008/03/term-insurance-with-income-benefit_23.html
If you are paying (or have been advised to fork out) $2,000 plus annually for a Life Insurance with a $50,000 - $100,000 payout then you would seriously want to read through this.
For a 30 yr old man, it is only $606 per year, plus coverage of possibly more than half a million dollars. Read the plan details in the blog post above.
My Take to Turbo Charge Your Personal Finance Plan
This is how I would speed things up with the same coverage and better long term returns, crossing investment and protection.
Carry on paying your “$2,000”, but separate it into the income-term plan that costs $606 and then put $1400 into long term low risk Unit Trusts.
By 10 years, you would have earned back all your premiums (just like a life plan) plus more than triple it by the 30th year (even if you only get 6% a year)! But, we get much more than 6% a year in our macro-economic style of Unit Trust Investing and at very low risk as well.
So Easy?
Yes, most solutions are usually this easy, however, the knowledge that you need to first have to understand how it works, will take time to learn.
Thus, we packed all the core Personal Finance knowledge required into 2 days of fun accelerated learning in our Finance Your Passion classes. Read more about our syllabus here: http://www.financeyourpassion.com/fypclass/
What if I do nothing now?
If you merely just carried on paying your “normal” Life Insurance of $2,000 plus a year, and 10 years down the road you die. Your payout to your children would be close to 10 times LESS than this combined investment-protection cross. Use an excel sheet to see for yourself.
To Financing Your Passion,
Winston Ng
Only Results Matter!
P.s.: PLEASE don’t do the silly thing of cutting your insurance premiums and then happily blowing off the extra $1,400 on unnecessary things like the 15th branded handbag or changing 3 month old sports rims.
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