Continuing from my previous blog entry about the Buy Term, Invest the Rest (Access Part 1 and Part 2 here) approach, I realized that many people, my friends included, do not know too much about insurance and what happens to their money. “I don’t know” is a very normal response I receive whenever I ask my friends how much their coverage they have for insurance. Many of them trust that their money is held in safe hands by their insurance agent, and to be frank, I was one of them until I decided to get insurance for myself and did some research. The numbers that the agents provide them are sufficient enough for them to accept the returns so long as they look more promising than the initial capital the long term.
In yesterday’s blog post, I mentioned about the amount of returns that I needed to generate if I were to adopt the Buy Term, Invest the Rest strategy. The annual yield of 1.37% was unbelievably true. Needless to say, I took comfort in my own numbers and decided to purchase a term plan.
Now, I was faced with a few new problems. Hais. Continue reading “Buy Term, Invest the Rest? (BTIR) – The Ultimate Insurance Guide for Beginners (Part 2)”
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Earlier this year, I met up with my financial consultant (a.k.a insurance agent) on the various insurance coverage that I needed. The only protection that I had was a H&S plan. She recommended that everyone should at least have a whole life plan which will allow you to take back part of your paid premiums.
Before committing to anything, I continued to do more reading regarding the importance of insurance and the types of insurance that were available on the market. There are a few websites that compare the different insurance plans and their prices so that consumers can make an informed choice based on their needs. It is needless to say that through my research, I have also learnt about the concept of “Buy Term, Invest the Rest” and how everyone seems to be raving about it. My real concern was if this was a feasible approach and was it really that easy to implement.
Let me do a quick summary about my findings.