Insurance cover?

[Temperament]

I mean the "Universal Life" may not pay you a cents under certain "special conditions". There is no 100% guarantee payment. Even our CPF's "Force to join Pension scheme" for the younger generation may not pay you a cent if certain conditions happens, if i am not wrong. That's why i say always be wary of insurance products.

[greypiggi]

some people i know buy a universal life, stick it in a trust to avoid potential liabilities down the road to call on it.

but i suppose if a) you have no dependents, b) don't want to leave money for them or happy to see them take whatever is left (ie what you have now is sufficient for their needs), there's no sense getting a universal life.

Precisely! If one can leave each kid sufficient money if one dies now. For me it is at least 3M usd in today dollars. Any more and we may end up spoiling them. Then it does not make sense to pay for insurance whether via term or life or universal life. As for the investment objective, as I shown and kelvin agrees, one can probably invest and outdo the insurance funds.

[yeokiwi]

Precisely! If one can leave each kid sufficient money if one dies now. For me it is at least 3M usd in today dollars. Any more and we may end up spoiling them. Then it does not make sense to pay for insurance whether via term or life or universal life. As for the investment objective, as I shown and kelvin agrees, one can probably invest and outdo the insurance funds.

Different people different stroke. But I prefer not to remove the fun out of my kids by giving them any inheritance except education.
They can always come back for a bed and meals when they suffer setbacks.

[CityFarmer]

I am too early to consider the inheritance, but in general i prefer incremental approach, instead of a lump sum at the end of day

Very few will able to remain sensible after a large wind-fall, either by lottery winning or inheritance.

To avoid that, preferred approach is to split the fund into several installments, and provide critical help during big events in life i.e. marriage, buy the 1st house, birth of kids etc.

[Kelvin]

I mean the "Universal Life" may not pay you a cents under certain "special conditions". There is no 100% guarantee payment. Even our CPF's "Force to join Pension scheme" for the younger generation may not pay you a cent if certain conditions happens, if i am not wrong. That's why i say always be wary of insurance products.

UL and life typically have similar terms and condition.
depends on policy term as well.

its less complicated than any prospectus

[steven]

Be careful when buying "Universal Life".
Some of them have terms that don't guarantee a paid out if some conditions happens.
Better scrutinize all the terms in the contract.
Anyway, i am very wary about insurance products.

The risk of losing money from any investment is much higher than insurance

As long as u didn't get ILP

so conclusion is ILP is bad?

[Kelvin]

Be careful when buying "Universal Life".
Some of them have terms that don't guarantee a paid out if some conditions happens.
Better scrutinize all the terms in the contract.
Anyway, i am very wary about insurance products.

The risk of losing money from any investment is much higher than insurance

As long as u didn't get ILP

so conclusion is ILP is bad?

To put it simply, yes.

there are better products to manage investment and insurance separately.