The new insurance sales tactic: Buy Term Invest the Rest in Unit Trusts fullres

What I hear from some of my acquaintance is that there is a change in tactics of  some advisory firms.

They do see the prevailing trend that because of the internet, more people know about the virtues of Term Life Insurance and see Whole Life Insurance as costly insurance (see here)

Being the ever evolving salesmen, the tactic have shifted to

  • recommending term insurance through the buy term and invest the rest plan
  • sell the invest the rest through many unit trust

This in turn use a prevalent generally good methodology to make people accept the idea. The cheap insurance component also makes it more appealing.

Since money is freed up, it allows the advisor to recommend a suite of unit trusts where they can earn recurring commissions from.

Because most are concern over low interest rates in savings and the need for protection, it is likely this …