Insurance cover?

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#11
I mean the "Universal Life" may not pay you a cents under certain "special conditions". There is no 100% guarantee payment. Even our CPF's "Force to join Pension scheme" for the younger generation may not pay you a cent if certain conditions happens, if i am not wrong. That's why i say always be wary of insurance products.
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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#12
(26-08-2012, 12:31 PM)godjira1 Wrote: some people i know buy a universal life, stick it in a trust to avoid potential liabilities down the road to call on it.

but i suppose if a) you have no dependents, b) don't want to leave money for them or happy to see them take whatever is left (ie what you have now is sufficient for their needs), there's no sense getting a universal life.

Precisely! If one can leave each kid sufficient money if one dies now. For me it is at least 3M usd in today dollars. Any more and we may end up spoiling them. Then it does not make sense to pay for insurance whether via term or life or universal life. As for the investment objective, as I shown and kelvin agrees, one can probably invest and outdo the insurance funds.
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#13
(26-08-2012, 09:58 PM)greypiggi Wrote: Precisely! If one can leave each kid sufficient money if one dies now. For me it is at least 3M usd in today dollars. Any more and we may end up spoiling them. Then it does not make sense to pay for insurance whether via term or life or universal life. As for the investment objective, as I shown and kelvin agrees, one can probably invest and outdo the insurance funds.

Different people different stroke. But I prefer not to remove the fun out of my kids by giving them any inheritance except education.
They can always come back for a bed and meals when they suffer setbacks.
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#14
I am too early to consider the inheritance, but in general i prefer incremental approach, instead of a lump sum at the end of day

Very few will able to remain sensible after a large wind-fall, either by lottery winning or inheritance.

To avoid that, preferred approach is to split the fund into several installments, and provide critical help during big events in life i.e. marriage, buy the 1st house, birth of kids etc.
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#15
(26-08-2012, 09:23 PM)Temperament Wrote: I mean the "Universal Life" may not pay you a cents under certain "special conditions". There is no 100% guarantee payment. Even our CPF's "Force to join Pension scheme" for the younger generation may not pay you a cent if certain conditions happens, if i am not wrong. That's why i say always be wary of insurance products.

UL and life typically have similar terms and condition.
depends on policy term as well.

its less complicated than any prospectus Big Grin
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#16
(26-08-2012, 07:29 PM)Kelvin Wrote:
(26-08-2012, 11:29 AM)Temperament Wrote: Be careful when buying "Universal Life".
Some of them have terms that don't guarantee a paid out if some conditions happens.
Better scrutinize all the terms in the contract.
Anyway, i am very wary about insurance products.

The risk of losing money from any investment is much higher than insurance Smile

As long as u didn't get ILP


so conclusion is ILP is bad? HuhHuhHuh
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#17
(27-08-2012, 04:07 PM)steven Wrote:
(26-08-2012, 07:29 PM)Kelvin Wrote:
(26-08-2012, 11:29 AM)Temperament Wrote: Be careful when buying "Universal Life".
Some of them have terms that don't guarantee a paid out if some conditions happens.
Better scrutinize all the terms in the contract.
Anyway, i am very wary about insurance products.

The risk of losing money from any investment is much higher than insurance Smile

As long as u didn't get ILP


so conclusion is ILP is bad? HuhHuhHuh

To put it simply, yes.

there are better products to manage investment and insurance separately.
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