I’m buying a fixed income instrument through leverage. I can’t share the exact plan yet, but it’s a participating whole life plan which provides for lifelong income. I was hesitant on buying such an insurance plan, as I did my own sums and I know it takes around 8-10 years to break even. If I pass away before that, I lose out and would be better off holding a bond or other fixed income instrument like an endowment. A year ago, I signed a plan and then got cold feet, and pulled out during the free look period.

The Best Time is Now

But there are significant reasons to rethink buying insurance now. Interest rates are at their lowest around 1.2%. It’s quite likely to stay down for the next 2-3 years, greatly reducing my borrowing costs. Market valuations are also high, and I’m hesitant to keep deploying funds into the stock markets....