Wholelife vs BTIR

charliek44

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BTIR Calculation

Charlie: ur calculation is wrong as term premium assumption is inaccurate -- comparefirst.sg doesnt have a 99yr term, ie 80-year term.

Hi Chopra,

My calculation compares different lengths of term life insurance and as I've stated in my earlier post, buying term insurance beyond 40 years does not make sense as your savings from the "invest the rest" would have already exceeded the $30,000 sum assured.

In other words, after 40 years you do not need the insurance anymore - if you pass away the death benefit is the savings you have built up!
 

charliek44

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Charlie: qualitatively agree. But quantitatively ur calculation is v inaccurate .

Just for completeness since you insist, here are what the numbers would look like if you do BTIR for 85 years (premium quoted is also on CompareFirst and provides coverage to age 97 for a 12 year old male):

85-Year Term - $76.2/yr (Zurich - $2.54 per thousand sum assured)

The difference in the whole life premium of $338.4 quoted in the below post and the above term life premiums result in annual savings of:

85-Year Term Savings - $262/yr

If you compound the above savings over the same length of time as the term coverage, the future value is as follows:

Based on 5% annual return:
85-Yr Term - $342,785

I'll leave it to you to test out alternative return scenarios and investment time horizons.
 

tommyw

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Correct me if I'm wrong, from what I understand, for whole life, the moment you want to take the money / need the money for something, then the coverage will lapse right?

If yes, then this defeat the purpose of having insurance in the first place...
 

wts2013

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Correct me if I'm wrong, from what I understand, for whole life, the moment you want to take the money / need the money for something, then the coverage will lapse right?

If yes, then this defeat the purpose of having insurance in the first place...

hahaha, my dear, if u do that, u kill your own policy, u need to learn or know how to manage your finances, hahaha
 

tommyw

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hahaha, my dear, if u do that, u kill your own policy, u need to learn or know how to manage your finances, hahaha

The thing is most agent selling whole life is dangling the numbers on the so called estimated surrender value. And my friend who bought that saying they are buying because of the promise of there is some money in it in case they need it in the future. So I feel that the whole mindset about this whole life is wrong.
 

wts2013

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The thing is most agent selling whole life is dangling the numbers on the so called estimated surrender value. And my friend who bought that saying they are buying because of the promise of there is some money in it in case they need it in the future. So I feel that the whole mindset about this whole life is wrong.

hahaha, u need to look at the big picture, they might have multiple policies, so it is ok to surrender one when money is really in need, u need to learn more about financial planning, dun put all your eggs in one basket, hahaha
 

MikeDirnt78

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The thing is most agent selling whole life is dangling the numbers on the so called estimated surrender value. And my friend who bought that saying they are buying because of the promise of there is some money in it in case they need it in the future. So I feel that the whole mindset about this whole life is wrong.

just read the following article. it addresses your concerns.

http://www.providend.com/the-case-for-term-insurance/

one more thing, don't believe that hahaha man. from his tone, you know he is a complete troll.
 

wts2013

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just read the following article. it addresses your concerns.

http://www.providend.com/the-case-for-term-insurance/

one more thing, don't believe that hahaha man. from his tone, you know he is a complete troll.

hahaha, is my trademark, hahaha is not trolling

u dun have to believe or trust me, do your own research,

the article u posted is from who? who is selling what? they are all salesmen u know, use Goh's name to advertise, so what, hahaha
 

wts2013

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The thing is most agent selling whole life is dangling the numbers on the so called estimated surrender value. And my friend who bought that saying they are buying because of the promise of there is some money in it in case they need it in the future. So I feel that the whole mindset about this whole life is wrong.

it is not wrong, it is all part of financial planning. I have 3 NTUC Living Policies, so if I need money (which I dun) and I can choose to terminate one to cash out, if I cannot afford to pay the premiums when I'm retired, I can opt to stop paying premiums but the policy is still alive, as I aged and dun see a need to have 3 policies to cover CI cos I'm healthy, I can terminate and use the money for retirement.

Why 3, as my income increases overtime, my agent suggested I add more, which I dun need to cos the sum assured automatically increases overtime, but I added so I got more options in future since I can afford with more income. If u understand the purpose of a CI policy, u will know why.

People have many different ways of planning their insurance and their future. Choose one that works with your priorities, your risk appetite, etc. My priority since I graduated was work hard to progress in my career and earn more money, hahaha, priorities will change as one progresses and grow older, hahaha
 
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MikeDirnt78

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the article u posted is from who? who is selling what? they are all salesmen u know, use Goh's name to advertise, so what, hahaha

wah, read this, one FA talking liao

http://forums.hardwarezone.com.sg/96719400-post23.html

moi will not listen to someone (S) who dun practice what he preach, hahaha, who lives far far away, hahaha

this is a confirmation that you are a troll who beat around the bush.

you listen to those practitioners but you discredit the article posted by a practitioner? :s13::s13::s13:
 

MikeDirnt78

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by the way, i know that guy from providend. he is a reputable advisor and contributor from the now defunct sgfunds forum back in 2000s.

why would he advocate a lower commission term insurance if he can sell WL policies at higher commissions?

obviously his priority is to serve the best interest of his clients. ie providing higher coverage at lower costs. commission must be his last priority.
 

wts2013

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by the way, i know that guy from providend. he is a reputable advisor and contributor from the now defunct sgfunds forum back in 2000s.

why would he advocate a lower commission term insurance if he can sell WL policies at higher commissions?

obviously his priority is to serve the best interest of his clients. ie providing higher coverage at lower costs. commission must be his last priority.

hahaha, salesman kill others to sell theirs, what is he selling to u ?
 

MikeDirnt78

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hahaha, u are a typical pap, resort to discredit when u lose in a discussion, hahaha, u are not being objective, hahaha

come share your BTIR with use chiu practitioner, hahaha, dun beat around the bush yourself, hahaha

now you associate me with pap? :s22:

:s13::s13::s13:

i am just a smart investor who can do better than the fund managers and some of the retail investors out there. my strategy is just to buy and hold shares for mid to long term. <10 trades a month.

but my performance is unlikely to beat someone who can time the market. someone who can time the market ideally should make >100% returns per annum. if not, he is better off not engaging in such risky transactions.
 

wts2013

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now you associate me with pap? :s22:

:s13::s13::s13:

i am just a smart investor who can do better than the fund managers and some of the retail investors out there. my strategy is just to buy and hold shares for mid to long term. <10 trades a month.

but my performance is unlikely to beat someone who can time the market. someone who can time the market ideally should make >100% returns per annum. if not, he is better off not engaging in such risky transactions.

hahaha, so u dun practice or have BTIR, hahaha, what a joke, hahaha
 
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MikeDirnt78

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hahaha, so u dun practice or have BTIR, hahaha, what a joke, hahaha

not sure what you are talking about. dont make silly assumptions.

i dont have a single WL/IP. all insurance are term with coverage up to 500k. covered by H&S with 0 deductibles/co-insurance payments.
 

wts2013

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not sure what you are talking about. dont make silly assumptions.

i dont have a single WL/IP. all insurance are term with coverage up to 500k. covered by H&S with 0 deductibles/co-insurance payments.

hahaha dun know who is ****, what is BTIR, come share yours, u mean u invest differently ah, mixed insurance with investment ah, teach me leh, hahaha
 
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