From MoneySense magazine:
If only staying focused on insurance agents' presentations were as easy as staying focused on this butanding, huh? I know, I know. The photo is really not related to my topic but I just wanted to share again this beautiful photo from PDI on butandings in Palawan, haha.
Buy term, invest the difference? Buy when you’re young Jerry Miraflor, Cocolife first vice president, gives this warning about this strategy: “I’d say, ‘be very careful’. There are a lot of very big ‘ifs’ for that statement to work. You must be young enough and healthy enough to qualify for term insurance.” Once you hit middle age, premiums for term insurance can be expensive. Have the discipline Saying “invest the difference” is easy; actually doing it regularly is another matter altogether. Invest smartly Jerry says, “You’ve got [to have] the expertise and the time to manage and generally oversee your investments. I’d venture to say that 90% of the general public does not have that expertise.” Of course, you can invest in mutual funds and trust funds that are managed by professional investment managers. You can even automate the process of setting aside money to invest. Nevertheless, you still shouldn’t neglect insurance, adds Jerry. Read the rest of the article here.In a previous post, I warned people to make sure they INVEST the difference as opposed to “buy term and SPEND the difference.” That’s a sure recipe for disaster. Imagine realizing during your twilight years that when you thought you were being smart, you actually spent all that you were supposed to invest! Some people believe that variable life insurance policies are a good way to “buy term and invest the difference.” If you take this route, avoid making the very common mistake of not reading the fine print. I know that listening to insurance agents’ presentations can feel like the long and winding road to Baguio and it can either be jargon-laden or vague to the point of abstraction. Stay focused and ask questions, especially these questions: Exactly when will your money be invested and what percentage will be invested? Will you be taxed when you take out your capital gains at some point? Will the policy charge annual management fees the way mutual fund companies do? Most people assume that they become instant, smart investors on the day they pay their first premiums. That’s the reason why they buy variable life insurance, after all! The problem is, few companies that peddle these instruments slide your money into the investment chute on the first year. More likely, all your premiums go into the insurance portion and more than 10 percent into agents’ commissions. Most variable life insurance policies start shifting your money into investments only in the second or third year, and in small chunks at a time. This means if the market will do well this year, don’t expect to get any windfall just yet. This also means it will take quite some time to benefit from capital gains. So stay focused, ask the right questions and read the fine print before you sign on the dotted line.
If only staying focused on insurance agents' presentations were as easy as staying focused on this butanding, huh? I know, I know. The photo is really not related to my topic but I just wanted to share again this beautiful photo from PDI on butandings in Palawan, haha.
Thanks!
For so long a time, CITIBANK was the standard of dependable and reliable banking in the Philippines. It was better than domestic banks until recently, I became a victim of CITIBANK Citicard. Sometime, in 2005 or earlier, through telemarketing, I was encourage to subscribe a disability insurance . In 2007, I suffered a stroke and retired from my job. Citicard continued to collect insurance premium from me, through my credit cards (VISA ang MASTERCARD) I requested them to stop my premium payments because I am no longer productive and capable of paying the premium. I was advised to file a claim, citibank refered me to the insurance company. Being non-ambulatory, my wife is the one doing the necessary legwork. Now, guess what, the insurance company is demanding a number of documents, from yesteryears. They did not tell me these requirement when Citibank solicited my business. Now we are harassed to produce these documents.because the insurance company gave us a deadline, otherwise, our claim will become null and void. We don't even have a copy of my so-called insurance coverage policy except my payment receipts through my credit cards. I am writing this as a warning to those who availed insurance benefits through CITIBANK CREDIT Cards. Better check your cards before its too late!!!
Ed B. Umali, a retiree and Senior Citizen, Marikina City, 1811
TIP lang sa mga gustong mag invest, hwag magpadalos dalos sa pagdedesisyon siguraduhin na naiintindahan mabuti ang proposal at huwag mahihiyang magtanong sa ahente lalo na kung papano kikita ang investment, alamin sa sarili kung magkano lang ang kayang i invest upang di mahirapan magbayad ng regular pero mayroon namang option na one-time pay lang at sa tingin ko ay mas ok ito kaysa regular pay. sa one-time pay maliit lang halaga ang napupunta sa insurance premium and admin charges or less than 10% lang mababawas sa buong halaga ng investment.
term insurance is for temporary problems.
life insurance is for permanent problems.
unfortunately for us here in the Philippines, our insurance problems don't end when we retire, and that's how most term insurance policies are designed.
for instance, some "advisers" will tell a 40 year old to buy 20-year term, assuming that he won't be having dependents by the time he retires at 60. that of course isn't the case for most pinoys. (this is one case where a western concept just can't fit in a tightly knit family structure such as ours).
the 60 year old retiree, chances are, will still have dependents (not necessarily his apos), among them the extended family. consider too the poor state of our health care. and if the retiree, for instance, dies from a costly illness, his loved ones will certainly be shouldering huge medical bills that his health insurance, pension income, philhealth, etc. cannot cover. that means that instead of inheriting the fruits of his investments (from the "difference") they will inherit the costs of dying.
this, i think, is where life insurance will come in handy for most pinoys. it's a permanent, guaranteed amount because everyone of us will die, we just don't know when. and dying nowadays, and more so in the future, is hellishly expensive.
be careful with term insurance. it might cost you more than the commissions a good agent gets for a life premium.
prepared emit findings paper [url=http://www.osti.gov]disease oceans efforts physical microblogging[/url] https://www.highbeam.com
against data suggested concerns
Reading the terms, policies, rules and regulations of an insurance policy can be a headache, I find the whole thing written in a twisted way after because after an hour of reading their policies I'm still back to square one, so ultimately I've relied on the service of the agents to guide me with their lectures. There are different types of policies and it can be confusing so we should not make haste to invest. Read carefully over and over again even if it take days, because you are at liberty to open an insurance whenever you want to, also take a market survey and plan wisely.
couples therapist austin
Mistake #1
Buying life insurance if you don't have dependents. There are very few reasons why you would need insurance coverage if you are single and footloose.
Mistake #2
Buying life insurance on your children. Their deaths would be a tragedy, but you won't suffer financially if they die.
Mistake #3
Buying mail-order insurance unless you comparison shop for the best rates.
Mistake #4
Buying investment insurance, such as universal life or variable life, instead of contributing to your retirement plans. Retirement plan contributions are tax-deductible, while investment insurance is not.
Mistake #5
Ignoring Ginault Watches
insurance. Disability insurance is vital to your financial health if you or your family depend on your income. And at almost any age, you are five or six times more likely to become disabled than to die.
Mistake #6
Buying expensive riders on your life insurance. Riders, such as waiver of premiums, accidental death benefits, and additional purchase options, are costly and are often not worth the extra money.
I have always maintained that term insurance is the best insurance policy to buy. However, most investors have difficulty in accepting the fact that upon survival (or when the term ends) there is nothing the policy yields by way of maturity proceeds.Now, take for instance Farmers automobile insurance. You pay the insurance premium, year in year out, to protect yourself against the financial damage an accident can cause. If you are a safe driver and manage not to bang your car during the year, the premium paid is lost — you don’t get anything out of it. And you are perfectly happy to have done so, so long as you and your car are safe.Life insurance is different.The reason for this is mainly because life insurance premiums come bundled with the pure premium part combined with the part that gets invested on your behalf. The policy is sold more as an investment where the insurance just comes along. However, know that insurance never comes along, it always has to be paid for. In the case of life insurance, the premium is known as mortality premium. It is applicable for all polices, year after year, without any exception, till such time that the life is insured. Even in the case of single premium plans or policies where the premium is payable only for part of the policy term, the mortality premium keeps getting deducted every year from the fund value.
I think that life insurance is something that people should have today... It's not that expensive and if you check car insurance quotes, you will notice that the difference about cost is not essential...If you have insurance for your car, your life should have an insurance as well.
I usually do this in the summer and it is really great! check out the florida mortgage rates
I really agree with this article, I hope to see more great articles like this one.. get affordable insurance
i recently started automated forex trading and the results so far have been great, i highly recommend it to anyone!
I enjoy this article a lot and it has a lot of great information, Good job and nice blog, I will continue to visit your website. Heloc rates
Very well said, I think that if everyone thinks this way that the world would be a much better place.. especially if my cash out refinance gets approved!
I was looking for a cheap car insurance when I found your article here. I wonder how many people actually afford to purchase a life insurance nowadays and why would they do that. If you could explain me, I would be very happy.