BTIF Method vs ILP/WL

[xdemolicx]

I dont believe 500k wl + 500k ci is only $6000 per YEAR + pay for 20yrs.

Did a check on comparefirst.sg and it suggests that ur inputs are wrong. Pls recheck.

Sent from ew line is so sloooow using GAGT

I did a check and it is really around $6000 per year. But there is that multipler term where my coverage will drop from 500k wl + 500k ci to only 100k after 75 yrs old.

 

[chopra]

This is the conventional type of WL.


Looking back at your first post,btir will give u 400k after 30yrs. Which u can continue to roll. Isnt this attractive?

Sent from ew line is so sloooow using GAGT

 

[Shiny Things]

Hi Shiny. I wanted it to be on more equal grounds since i noticed that many policies seems to use the minimal range of 3.25% or 3.75%.. not sure if this is good. I am a fairly low risk invester. I changed the comparison to be against a WL instead .

Sure, but if you're comparing a BTIR strategy to a whole-life insurance policy and assuming the same returns out of both of them you're going to be wrong. Insurance companies invest a lot more conservatively than you will - they have to invest conservatively because they're paying out claims all the time. That's why insurance company funds are mostly in bonds.

You, on the other hand: even if you're a low-risk investor, you're going to average more than 3.5 or whatever, because you can allocate to stocks without worrying too much. And you're not going to be paying 1-2% per year in fees, either. So it's fair to use a 5-7% rate on your "invest the rest" investments.