Foot note:
The example above is a personal experience of mine with a "famous" American insurance company.
I've also experienced a similar thing with a very prudent insurance company as well - where the first few years' "investment" portion of my insurance "bought" me 40% to a RM1 value! Hm.. didn't notice they whacked me 60% cost per year, declining every year until the 7th or 8th year where my RM1 will buy me RM1 worth of investment (NAV).
The example above is a personal experience of mine with a "famous" American insurance company.
I've also experienced a similar thing with a very prudent insurance company as well - where the first few years' "investment" portion of my insurance "bought" me 40% to a RM1 value! Hm.. didn't notice they whacked me 60% cost per year, declining every year until the 7th or 8th year where my RM1 will buy me RM1 worth of investment (NAV).
Does it means term better (worth more) than the rest policy?
ReplyDeleteFor the best "bang for the buck", ie. cost per $1 coverage? Yes!
ReplyDeleteFor estate planning and moving $ after we're dead? May not be.
Oops - i missed out the reason that some folks use whole life or investment-linked death/life insurance to move $ after death.
ReplyDeleteIt's indisputable + i think it's not taxable (for those with $2M+ assets in M'sia, beware of taxes on your inheritors) if i'm not mistaken.