Invest In Life Insurance - Will You Lose or Not?

Let say if a person saves $200 per month with an insurance company, and the insurer put $100,000 into his family's bank account.

If he dies, his family receives $100,000. On the other hand, if he chooses to put the $200 in the bank, what his family get will be the exact amount he saved per month plus some earned interest.

However, if he lives say till retirement, the insurance company refund him the deposits with interest.

So you see - one has nothing to lose by investing in life insurance. Does it make sense?

If you can see the benefit of owning a life insurance policy - don't procrastinate get it started immediately if you have not done so.

Well, many a time we hear people saying "I can't afford to commit further financial burden." It is understandable. However, you don't need to over commit yourself financially. A simple and practical way out is - just transfer a comfortable percentage of your monthly bank saving to an insurance company to put you on the program. For e.g. if you deposit $300 p.m. in the bank, now put in $200 instead and transfer one-third i.e. $100 to the insurance company. You kill two birds with one stone. Get it!

If you are undecided what life insurance meets your need, you are welcome to drop me a note and I will be happy to provide you with some appropriate advice.

Small Savings Make A Big Difference

Heard about this story ?

Oseola was 40 years old when she was finally able to start saving money. She squirreled away pennies and nickles at first... then quarters... and eventually dollar bills.

She put her savings in a local bank and never touched it. Over time, her savings added up, and the principal and interest on those savings kept building and building.

In the summer of 1995, Oseola - the elementary school drop-out who never earned more than $9,000 a year - donated $150,000 to the University of Southern Mississippi!

Amazing, isn't! So the moral of the story - save whatever you can afford and it will just grow and grow. Likewise, for the affordable, he may buy a $100,000 coverage, but there is nothing embarrassing if you can afford a $10,000 cover for the time being. Is better to have some insurance cover rather than no cover.

So much to talk about today!

Insure Your Irreplaceable Asset

You can use your earned income to replace your house if it is burned down uninsured.

Your income can be used to replace your motor vehicle if it is destroyed uninsured.

Question is - can your income be replaced if YOU die uninsured?

So.... if you can sacrifice so much of your life for your loved ones, why not insure it for them....

Feel free to drop me a note if I can be of service to you.

Why People Avoid Talking About Insurance

Why people avoid talking about insurance. Actually, it is not difficult to know why i.e. the reasons behind this thinking.

Well, I believe you will agree with me - When we talk Life Insurance we talk about death, disability, old age and critical illnessess. None of which are joyous occasions.

We all know these are facts of life, the reality remains that the subject of life insurance reminds people of tragic or woeful events.

For this likely reason, it is only natural that people tend to avoid this subject. Unfortunately, in doing so, they somehow also avoided a vital part of financial planning for their families' future.

As a matter of fact, we have seen many cases where families were left to suffer for numerous years as a result of no or inadequate life insurance coverage on the breadwinner who died prematuredly or unexpectedly.

To know how to go about insuring yourself for the sake of your loved ones you are welcome to drop me a note. I will be more than happy to share with you what I know.

Make Your Decision With The End In Mind

Your wise decision today can mean a brighter tomorrow for those you love the most.

Insure yourself to protect your loved ones from financial disaster.

The longer you procrastinate the higher would be the cost of your insurance. What is most important is your insurable interest. Can you guarantee that you will stay in your pink of heatlh forever?

Worrying About Retirement?

I read about this write-up in the Sunday Times about a saving method which you can apply when you are planning your retirement.

I find it useful and am putting it here just in case you gave it a miss. This write-up was extracted from the book titled Savvy Savings Guide - SAVING FOR RETIREMENT by Paul Westbrook.

You are young and you want a simple answer. You want to know how much you need to save to retire on time, so here it is :-

The 10-12-15 per cent solution.

* age 25 : save 10% of your salary
* age 30 : save 12%
* age 40 : save 15%

If you are just starting your career and are, say between 20 and 25, save 10% of your salary until you retire.

If you are 30 and have not yet begun to put money away, save 12% of your salary.

If you are 40 and have US$50K [S$76K] in retirement investments, save 15% of your salary. If you are 40 and have zero retirement savings, you will either need to push back your plans for retirement or save a whopping 22% a year.

If you are in this bind, however, you might need to resort to retiring on a shoestring.

This 10-12-15% savings rate is the most important retirement action you can take early in your career.

Simply start and continue a systematic savings and investment programme. It will, in general, allow you to retire at age 65. It also allows for an emergency or two that requires you to dip into some of the money.

It not only prescribes your retirement savings target, but also allows you to have financial flexibility for life's uncertainties.

These calculations assume that you will live to age 90 and that you will enjoy a 25-year retirement. If you are married and your spouse also works and earns the same salary as you, then you will have US$2 million between the two of you.

The rates also assume there will be no employer to match your investments, like a 401[k] plan, and you will have no pensions. With any of these additions, you retirement will be more comfortable.

These rates do assume you will get a 3% salary increase each year and that you will need about 65% of your then salary at retirement to maintain your lifestyle.

If your salary grows faster, or slower, you will still contribute 10%, 12%, 15% of it to retirement investments.

Lower taxes, no work expenses and not having to save for retirement anymore are the prime reasons that explain the lower financial requirement of 65%.

NTUC INCOME has some excellent investment plans that may help you to fulfill your retirement goals. Do let stay in touch with me if I can be of assistance to you.

Your Life Is Like Carbon

As you may know, both diamond and coal are made of carbon. However, one is very valuable while the other is of little monetary value.

So your life is like a "diamond". By insuring your life, you
leave behind a "diamond" so to speak. Otherwise, what's left to your loved ones is like worthless "coal".

So really you have to make a choice - a "diamond" or "coal."

Just food for thought.