Buy Term Invest the Rest - Singapore's Online Community

**zhiz22** · 27-05-2008, 12:40 AM

What are your views on this?

Personally I would not rely just on term and I would still get a limited pay whole life policy and combining it with term.

Of course I would invest and the whole life policy would be considered one form of investment if i need it to be.

Kaze.YonGMinG · 27-05-2008, 08:37 AM

limited pay life policy + RP ILP =)

**djchris** · 27-05-2008, 01:02 PM

Buy term and invest the rest would only be applicable to people who know how to do it. Not everyone knows how to invest and make gains. That's why ILP comes in.

I would think that term plus shield would be sufficient for up to 65-70. But beyond that, term is probably too expensive and most insurance plans will most likely not cover people past 70 who want to sign up.

If young, a whole life plan may be good to cover over 100 yrs old.

ILP somehows comes in a 2-in-1 solution for people who want to invest and insure themselves...Naturally 2-in-1 lipton tea doesn't taste as good as gourmet tea.

**monkeybusiness** · 27-05-2008, 06:43 PM

my insurance philosophy is to get a Limited Premium Whole Life Policy as the main base policy.
If i need any top-ups, i will just get a term policy.
Of course, H&S is important too.

**monkeybusiness** · 27-05-2008, 06:44 PM

if i am correct, is AXA the company that provides the best term policy?
Because i remember that they have this term policy which will cover inflation or something to do with inflation...unlike the other term policies...which loses out as time passes.

Kaze.YonGMinG · 28-05-2008, 01:32 AM

that will be really good.

**inle** · 28-05-2008, 04:02 AM

	Quote:			Originally Posted by Kaze.YonGMinG
	limited pay life policy + RP ILP =)

why get ILP(an insurance product) when u can lay ur hands on real investment tools like UTs, stocks, ETFs, derivatives etc etc....

btw, i think AXA haf some term plans tat give profits if there s no claim over a certain period of yrs....
i think AXA got some of the better term plans in the mkt...
i think they r the ones who start the concept of buy term, invest the rest...

**eyes** · 28-05-2008, 07:39 PM

i think UT is a good investment too

Kaze.YonGMinG · 29-05-2008, 12:48 AM

	Quote:			Originally Posted by davidkwankk
	why get ILP(an insurance product) when u can lay ur hands on real investment tools like UTs, stocks, ETFs, derivatives etc etc.... btw, i think AXA haf some term plans tat give profits if there s no claim over a certain period of yrs.... i think AXA got some of the better term plans in the mkt... i think they r the ones who start the concept of buy term, invest the rest...

for more coverage at a lower price when u're young and ability to accumulate more in ur 50s to prepare for retirement

**inle** · 29-05-2008, 05:35 PM

the topic s buy term(insurance plans) n invest the rest(i assume in investment instruments)...

if u buy another insurance product(RP ILP) 4 investment purpose, it kinda defeat the purpose of investment leh...
it will b buy term n buy another insurance plan liao...

**deleo88** · 29-05-2008, 06:01 PM

Buying term, investing the rest....

isn't buying ILP the same? Afterall the premium you are paying goes to support your insurance coverage (term) and the rest into funds investment (investing the rest).

Dollar cost averaging is another advantage of getting ILP as it can be proven mathematically that it costs lower (in terms of risk and monetary) to invest regularly than to time the market.

**dearludear** · 29-05-2008, 07:16 PM

Buy Term Invest the Rest...

This concept had been widely used in mature economies like US, UK and Australia.
SIngapore is modelling after them..

Let's look at in Singapore context if this concept is appropriate...

1.) Term Policy is still not yet popular

Most of us still get participating Life Plan or Reg ILP. Buying term is not yet the "in" thing now.

Therefore, term policy is still competitive and cheap yet for most of us to enjoy.

2.) Self Discipline Needed for Term Policy

Once lapse, term policy is no longer valid. We will have to apply for another plan subjected to our health condition. Therefore, we must continue to pay and can't stop paying.

For participating products, we can always revise the policy to continue our protection.

AXA is more advanced and had begin this concept a few years back.
There's a cashback benefit for some term policy, which if nothing happen, AXA will return our premium paid back to us.

**zhiz22** · 29-05-2008, 10:26 PM

	Quote:			Originally Posted by deleo88
	Buying term, investing the rest.... isn't buying ILP the same? Afterall the premium you are paying goes to support your insurance coverage (term) and the rest into funds investment (investing the rest). Dollar cost averaging is another advantage of getting ILP as it can be proven mathematically that it costs lower (in terms of risk and monetary) to invest regularly than to time the market.

btw which insurance company are you working in?

**djchris** · 29-05-2008, 10:48 PM

	Quote:			Originally Posted by deleo88
	Buying term, investing the rest.... isn't buying ILP the same? Afterall the premium you are paying goes to support your insurance coverage (term) and the rest into funds investment (investing the rest). Dollar cost averaging is another advantage of getting ILP as it can be proven mathematically that it costs lower (in terms of risk and monetary) to invest regularly than to time the market.

You are so mistaken that I don't know how to correct you...

**zhiz22** · 29-05-2008, 11:18 PM

	Quote:			Originally Posted by djchris
	You are so mistaken that I don't know how to correct you...

Not surprising after you see the 3 posts that this member made. Hence my question as above.

**inle** · 30-05-2008, 06:41 AM

	Quote:			Originally Posted by eyes
	i think UT is a good investment too

UT s good for long term wz good inv portfolio management n strategies for a start...
also good if u 1 2 leverage on ur adviser...

	Quote:			Originally Posted by deleo88
	Buying term, investing the rest.... isn't buying ILP the same? Afterall the premium you are paying goes to support your insurance coverage (term) and the rest into funds investment (investing the rest). Dollar cost averaging is another advantage of getting ILP as it can be proven mathematically that it costs lower (in terms of risk and monetary) to invest regularly than to time the market.

i dun understand the above statement...
seem tat deleo will like to enlighten us here...

	Quote:			Originally Posted by zhiz22