Term Life Insurance - Buy Term and Invest the Difference!

The phrase "BUY TERM AND INVEST THE DIFFERENCE" evolves around the concept of term life policy which is a basic protection policy and the endowment/ whole life policy which has protection and investment/saving features. To put it simply, the phrase means that instead of taking up the endowment/whole life policy, an individual should buy a term policy for protection and the difference between the premiums of the two policies is to be invested by the individual himself to earn some dividend on the investment.

To agree with the phrase "Buy Term and Invest the Difference", one need to have the conviction and will-power to invest the difference in the premium in an investment vehicle that can pay a return higher than that declared by an insurance company. Unfortunately, most of us do not have the capability to achieve the desired return over time. At times, one is lucky to reap a good return from the equity market but this is all short-lived when the downturn occurs, all gains will be wiped out and may even heavy losses.

However, investment-linked life insurance have been pioneered and offered for sale by insurance companies around the world as one way where it is possible to have both protection and investment at the same time. In the United States of America, investment-linked life insurance is known as "variable life insurance". It was pioneered by the Equitable Life Assurance Society and was offered for sale in 1976. This type of product is recommended if one agrees with the phrase "Buy Term and Invest the Difference".

Investment-linked life insurance policies offer more flexibility to the policy owners and they can choose when to top up or how much, or on what portion of their policy that is linked directly to investment performance. Considering the wide range of investment tools available, investment-linked insurance products may be linked to stocks and shares, property or real estate, cash deposits, fixed income securities, government bonds, corporate bonds, unit trusts, investment trusts, other life insurance and annuities. Investment-linked funds have been created to suit the client's various investment objectives, risk-reward profiles and investment preferences.

With several insurers offering a variety of investment-linked insurance products, it is now possible for an insurance policy holder to enjoy protection and at the same time to invest solely in one fund or a combination of funds, subject to certain limitations, such as a minimum of 20% of his investment in each fund selected. An insurance policy holder may switch his investment between funds when his investment objectives change.

As an example, an Income Fund which is managed by a company's in-house fixed-income investment team comprising individuals with more than 20 years of experience in the financial sector. This fund is suitable for policy owners seeking stability of principal and a higher return compared to bank deposits but with acceptable risk to capital invested. The fund is principally invested in fixed-income securities, treasury products, money market instruments, collective investment schemes, and any other permissible instruments or investments prescribed by the relevant regulatory bodies to provide a steady return to policy owners through accumulation of capital over the long-term.

Without the existence of investment-linked products, one may disagree with the phrase and may not "buy term and invest the difference" but instead to take up a traditional participating life insurance product that provides life protection with an element for investment. The premium may be higher but it leads to wealth creation for the future.

YS Koh is an independent Certified Financial Planner and a licensed financial investment broker by practice. She writes often and provides insights and viewpoints for her blog "Life Insurance Information Portal" (http://get-term-life-insurance-info.blogspot .com)

This Life Insurance Information Portal is designed to provide you with unbiased information and useful tips, free from http://www.get-term-life-insurance.info

---

Google News Updated : Sun, 12 Oct 2008 05:51:03 GMT Singer Lisa Marie Presley gives birth to twins - The Associated Press The Associated Press Singer Lisa Marie Presley gives birth to twins The Associated Press - 3 hours ago LOS ANGELES (AP) - Lisa Marie Presley is a mom again. A publicist says the 40-year-old singer gave birth Tuesday to twin girls, whose names were not released. Lisa Marie Presley delivers twins: report Reuters Today's News: Our Take - Lisa Marie Presley Gives Birth to Twin Girls Seattle Post Intelligencer E! Online - People Magazine - Monsters and Critics.com - Hollywood.com all 569 news articles Publ.Date : Sun, 12 Oct 2008 02:11:28 GMT Theatrical Review of Body of Lies - DVDTOWN.com Theatrical Review of Body of Lies DVDTOWN.com - 5 hours ago By Jason P. Vargo "Body of Lies" is a certain type of movie designed for a certain type of moviegoer. I think the tagline describes the movie perfectly, actually. Body of Lies E! Online 'Body of Lies': Desert Norm, By Kurt Loder MTV.com Boston Herald - Los Angeles Times - Radar Online - Entertainment Weekly all 1,041 news articles Publ.Date : Sun, 12 Oct 2008 00:19:39 GMT Bush, allies seek to calm jittery investors - BusinessWeek Bush, allies seek to calm jittery investors BusinessWeek - 4 hours ago By JENNIFER LOVEN and MARTIN CRUTSINGER President Bush and financial leaders from nations rich and poor pledged Saturday to intensify their efforts to unblock a frozen financial system before it does more damage to an increasingly shaky global economy. Bush Says US Must Take Lead in Solving Crisis (Update3) Bloomberg Bush, allies seek to calm jittery investors The Associated Press New York Times - Austin American-Statesman - AFP - KSFY all 1,542 news articles Publ.Date : Sun, 12 Oct 2008 01:30:21 GMT Five killed in New York fire; 300 acres burn in Napa Valley - Austin American-Statesman CBS News Five killed in New York fire; 300 acres burn in Napa Valley Austin American-Statesman - 1 hour ago NEW YORK - A family of five, including three children, died in a blaze that filled an apartment with thick smoke and kept the victims from escaping through the front door, fire officials said. Napa County wildfire forces evacuations of over 100 homes Los Angeles Times Fire Threatens Napa Valley Homes and Wineries New York Times KEYC - CBS 5 - San Francisco Chronicle - WSBtv.com all 422 news articles Publ.Date : Sun, 12 Oct 2008 04:27:05 GMT McCain supporters face uphill climb in blue Jersey - Newsday Sunday Times.lk McCain supporters face uphill climb in blue Jersey Newsday - 15 hours ago By WAYNE PARRY | AP Writer WOODBRIDGE, NJ - Walter Zjawin is trying to help John McCain do what no Republican has done in 20 years: win a presidential general election in New Jersey. Maine now on McCain radar Central Maine Morning Sentinel McCain inches closer in Saturday's Gallup Kansas City Star Boston Globe - CBS News - Washington Post - Ethiopian Review all 220 news articles Publ.Date : Sat, 11 Oct 2008 14:04:37 GMT On the trail to the White House - Fort Worth Star Telegram The Age On the trail to the White House Fort Worth Star Telegram - 33 minutes ago Sen. Barack Obama, Democratic presidential nominee, at a rally in Philadelphia on Saturday. AP/ALEX BRANDON Today’s headlines Report stings Palin over troopergate flap; Raw anger showing up in McCain crowds, candidate taking steps to minimize it; ... McCain Asks Supporters to Show Obama Respect Wall Street Journal Obama Thanks McCain for Urging Supporters to be Respectful Voice of America Washington Post - Chicago Tribune - ABC News - Bloomberg all 733 news articles Publ.Date : Sun, 12 Oct 2008 05:17:46 GMT Van driver's work in Mass. aided Nobel winners - Boston Globe Voice of America Van driver's work in Mass. aided Nobel winners Boston Globe - 1 hour ago HUNTSVILLE, Ala.—When two American scientists won a Nobel Prize this week in chemistry, the driver of a car dealership's courtesy van had reason to take special interest. Video: Nobel Chemistry Prize Goes for Jellyfish Protein AssociatedPress Comment by Jeremy M. Berg, Ph.D., Director National Institute of General Medical Sciences The Daily Yomiuri - The Associated Press - Los Angeles Times - WTEN all 1,250 news articles Publ.Date : Sun, 12 Oct 2008 04:14:18 GMT RSS Parser Increase Search Engine Traffic

PARLOT::Ebooks, Scripts, Websites, and more...

Adsense websites

What is Car Insurance?

Car Insurance is compulsory in the UK. You are required... Read More

Business Insurance ? And What You Need To Know

Getting your business up and running is exciting, challenging and... Read More

10 Tips to Save on Healthcare Insurance

Americans shopping for their own healthcare insurance can substantially cut... Read More

Car Insurance Advice for Young Drivers in the UK

Over the course of the last ten years, car insurance... Read More

Everybody Wants The Best Term Life Insurance Quote

The information you need about the best term life insurance... Read More

Travel Health Insurance - Understand the Benefits

If you're planning an overseas trip, you need travel health... Read More

Health Insurance, What Does It Mean?

Your health insurance policy is an agreement between you and... Read More

Disability Insurance For The Long Term

Disability insurance covers you for an extended period of time.... Read More

The Life Insurance Policy and What You Need to Know Before You Buy

Are you looking to buy a life insurance policy? Well,... Read More

Independent Insurance Agents Unite! Insurance and Financial Discussion Forums are all the Rage

The online discussion forum has emerged as the medium of... Read More

How To Get Cheap Whole Life Insurance Quotes

Whole life insurance quotes the most expensive kind of policies... Read More

Is an HSA a Type of Insurance?

A Health Savings Account (HSA) is not a type of... Read More

Facts About Renters Insurance

If you rent an apartment or house, you might consider... Read More

What Is Renters Insurance Really All About?

Renter's insurance is protection intended for anyone who rents an... Read More

Health and Dental Insurance Quotes - Applying Online

Since 2001, large health and dental insurance companies such as... Read More

Poor call centre performances driving motorists online for insurance

In their efforts to cut costs more and more finance... Read More

Outside Pressures On The Typical Insurance Adjuster

Insurance adjusters are not without outside pressures they must deal... Read More

Health Insurance Plans - Benefits to Different Plans & Providers

Health insurance plans vary in their coverage and prices. The... Read More

Disability Income Insurance Can Meet All Your Financial Needs

Disability income insurance can cover you in the event of... Read More

Consumer Driven Health Plans [ CDHP ]

Do you know that skyrocketing health care costs have been... Read More

Factors That Affect Your Car Insurance Premium

Many factors affect the premium you will pay for auto... Read More

Flat Insurance in the UK

What are the factors involved in flat insurance? Do I... Read More

Underinsurance Can Spell Disaster For Homeowners

Insurance is meant to give homeowners peace of mind, but... Read More

Cheap Auto Insurance Quotes ? Tips For Getting The Lowest Rate

Finding auto insurance quotes online is easy, but finding the... Read More

Compare Car Insurance Companies Before You Commit

If you want to save money on your car insurance,... Read More