Buy term and invest the difference

Regular visitors to my blog will find that I keep repeating the same message, "buy term insurance and invest the difference in a low cost fund". I keep posting this message in reply to questions that are directed to me by my visitors, who might have missed this message earlier.

It is all right to invest in life insurance products, provided that the charges are fair and that the products provide a decent yield to the consumer. The consumer should learn how to identify what are fair products and what are "rip off" products by studying the benefit illustration. So far, I have seen dozens of benefit illustrations and all of them take away too much from consumers. I have not seen any product that meet my benchmark of being fair.

I will have to keep mentioning this point, for the benefit of recent visitors to my blog who have missed the same message earlier. If you find that a message that is similar to what you read before, just learn to skip it.  Do remember - it is meant for other readers.

I also advice visitors to read the FAQs in my website, www.tankinlian.com/ask.aspx. You should also buy my book, Practical Guide on Financial Planning. It is not fair for anyone to ask me to spend time to give free advice, when you do not bother to spend the time to read my guide book or the FAQs.

Tan Kin Lian