Insurance
What is Buy Term Invest the Rest?
By Sethisfy  •  June 25, 2011
Buy Term Invest the Rest is a strategy that provides an alternative to whole life insurance policies. The rationale for such a strategy is that one can invest the savings in premiums one receives by purchasing an inexpensive term policy rather than a pricier whole life policy. The accumulated savings and investment returns will then make up a sum of money for one’s insurance needs in future when the term policy ceases. Here’s the Math for such a strategy: Jack, a 24-year-old non-smoking man, wishes to insure himself for $200,000 against death, total & permanent disability and critical illnesses. A 35-year term policy will cost him $642 a year. A whole life policy costs $3,018.00 per year, and the premium term is 35 years (he pays 35 years of premiums to be covered for his whole life) for the sake of easier comparison. The difference in premiums works out ......
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By Sethisfy
As an adult, I’ve been through many ups and downs in my career path and personal finance journey, not unlike many Singaporeans. From my years as a tied insurance agent turned independent financial adviser, I realised that there are very few sources of proper, unbiased financial advice for working adults to access. Worse, self-styled “financial consultants” are selling products like savings plans and ILPs to the detriment of the clients whose interests they were supposed to serve.
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