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Old 05-12-2018, 07:07 PM   #12
BBCWatcher
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Join Date: Jun 2010
Posts: 6,728
Hello, u got short memory?
My comments are not directed at your choices, only at the logic (or lack thereof) in your argument -- the principles of getting value-for-money in insurance.

I have discussed this before, more than 20 years ago, I can only buy whole life to cover CI, it is a savings plan, if nothing happens I will get back all my premiums with 4% compounded returns! If I no longer need the cover, it becomes my retirement funds!
Right, 20 years ago Singapore's financial and insurance markets were less evolved, and maybe an expensive hybrid of savings and insuring was the best you could do. DII wasn't available (or at least you didn't know about it), and well diversified and low cost index fund investing wasn't easily available from Singapore either. So you did the best you could in the circumstances, 20 years ago. OK!

Even if they sold DII in the past, I will not waste my money on it! It is an expense, not a savings plan, if nothing happens, money down the drain. My preference.
And this is where you lose me (and others).

Practically everybody who has looked at this, who isn't trying to sell you an insurance product, sees that insurance carriers' investment products (and sometimes their insurance products) are just not good value for money. You can get more bang for your savings buck if you turn to the low cost savings/investment outlets.

Nobody is saying you shouldn't have future wealth and income. You should! It's just how you do it, and how to maximize your results, that's all. There are loads of people saddled with lousy whole life policies in terms of value for money; it's the perfectly normal, typical landscape.

Now, there are a couple exceptions. One important exception is if somebody just cannot save unless "forced" to save in the form of premium bills from their insurance carrier. If the choice is between not saving (because you just don't have the discipline) and paying a whole life premium for many years, then I think I would choose the second option!
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