Term VS Life Insurance?

[kuehteow]

Please note one thing regarding riders: if and when the main policy (whatever it is) ends, the riders end as well.

I thought you can let your main policy continue to roll but not the rider right?

 

[dendii]

Correct. The main policy will continue to run and the term rider will cease after a certain period.

What Maeda meant is that if the main policy has already ceased, the rider will naturally be gone as well since there is nothning for it to be attached to anymore

I thought you can let your main policy continue to roll but not the rider right?

 

[dendii]

What is the premium difference?

But IMO i find that a mix of WL + Term works better as well instead of full BTIR.

Ish my thought process for this wrong or did i miss out anything

 

[akwl88]

What is the premium difference?

But IMO i find that a mix of WL + Term works better as well instead of full BTIR.

how come wo?

 

[dendii]

how come wo?

Depending on your age as well of course.

A term coverage of 300k, say in this case $1,204 at age 28, coverage till 70 years old.

A limited paying 20 years WL of 100k, costs about $1,500, with a term of 200k, costing about $802.

You use the difference in premium during the first 20 years and invest it yourself, assuming a 3% return, will get approximately 60k at age 80.

After 20 years, you have a fixed insurance coverage and you no longer need to pay the limited WL premium anymore, plus because your term is cheaper through a hybrid method, you will have end up with a higher coverage amount if you do the calculations until 80 years old.

But of course if you are confident to get an estimate of 4% return, then your compounding will be much stronger and you will end up with a higher coverage through BTIR alone.

Through BTIR however, there is no guaranteed sum assured and you are solely dependent on your own investments for protection. If the market is down when your term insurance ends, then that is going to be a bad period for you.