This will make you see Term Insurance differently

Posted 20 December, 2015 by Surely
in Opinion
Surely's True Love.

Surely’s True Love.

I chose my true love due to her low maintenance quality.
She does not want me to spend much on her but yet give me so much more, relatively to her other competitors.
She promises to take care of me when I am terminally ill or dead.
She is no other than my beloved Term Insurance.

The reputation of Term Insurance is not that esteemed, at least amongst the general public.
Many of the populace hates Term Insurance without much good reasons.
Some of this segment of people have been ill-advised by their Financial Planners like our friend here.
Others dislike Term Insurance for other differing reasons
Today we try to dispel some of these misguided beliefs.

No cash/saving value

Even piggy bank is a little sceptical.

Even piggy bank is a little sceptical.

This is by far, the top factor in the dislike of Term Insurance.
Other policies such as Endowment plan or Whole Life yields returns, potentially good ones.
However, have you seen the coverage on your Endowment policies?
Do you think it is sufficient for your loved ones?
In addition, Whole Life plan is essentially a Term Insurance with a saving component.

You want something in return for years of premium payment
You paid so many years worth of premium and the coverage just end without anything for you?
This is a mental obstacle for people to overcome when it comes to Term.
We can change your viewpoint. Picture the following.

You grow rice for livelihood; you want to eat some chicken for dinner
You look to trade some rice for chicken with your neighbour.
This is barter trading in essence. A way of living before money.

In insurance, you are trading your money for a promise to pay your beneficiaries ,upon the occurrence of your death or terminal illness.
This promise is not empty – it can be enforced by law through your insurance contract.
However, if you are expecting something in return after this promise, you are expecting the insurer to cover you for free all these years

Still lost? An even simpler way to picture it.
You place a bet with a bookie that you shall die in this year.
A year passed. You did not die.
Are you going to get your bet amount back from the bookie ?

Are you sure you want that money back?

Are you sure you want that money back?

No coverage after 65 years old.

It used to be true.
Nowadays there are Term Insurance that may cover you beyond the age of 65.

In any case, you ought to ask yourself whether you require that coverage.
If you are retired and without any financial obligation, you should not need any cover.
Instead you should focus about retirement planning at that stage.

Lack of coverage scope

When it comes to term insurance, it is largely associated with death and terminal illness coverage only.
Other insurance products seem to be much more comprehensive.

This, my friend, is merely a perception issue.
You can add a Critical Illness rider or a Waiver of Premium benefit to your term insurance too.
In fact, some of the more comprehensive whole life policies are made up of the plan itself PLUS riders.

Stop getting confused like Vincent Vegas

Stop getting confused like Vincent Vegas

Why are the insurers and advisers not telling me this ?
Term insurance not only provides the least commissions to the advisors but also a product with less premium than other insurance plans.
Insurers have to provide most coverage with less premium whenever you buy Term Insurance from them.
If you are a bargain hunter, we reckon this is the best value-for-money deal that you can have.

Conclusion

As insurers constantly fail to meet their bonus projections year after year, it may be just the right time for you to stop depending on them to manage your savings.
In fact, buy term and invest the difference is a growing trend amongst the young savvy ones.
As people are getting more educated, they want the power to manage their money back to themselves, instead of giving it to supposed professionals.

You should be the one burning your own money.

You should be the one burning your own money. At least you had fun.

Change your viewpoint today.
After all, I am sharing my love with you.

www.ClearlySurely.com aims to eradicate the knowledge gap between consumers and Life Insurance. Our Vision is that one day, every Man, Woman, and Child will be properly insured.

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