I have invested alot of monies in life insurance..is it really wise?
Answer:
It is wise if you know you are going to die young, have a major medical crisis and have dependents. Point of life insurance is to provide for your family when you die too young, pay for life-long medical bills (e.g. daily kidney dialysis) and/or major medical bills.
If you just have whole-life or endowment policies, and these are your only savings/investment tools then most likely you will never reach your target retirement fund as these instruments offer little return. Another thing to worry about is in case you are unemployed for a couple of years, can you manage all the premium payments?
You need to look into a higher risk investment if you already haven't e.g. unit trust portfolio and share portfolio.
Maybe you need to look into writing a will too. Let me know I can arrange all this for you, just email me.
no, it isnt wise.u pay those premiums to too many insurance companies wont bring in much reurn to you. it's good to invest in one or at the most two.
Absolutely. My only concern is your choice of beneficiaries.
Let me know what you need form me ,,, name address etc. so we get that corrected.
It depends on the kind of insurance you bought. The following are some of the questions you need to answer :
1 ) Do they have return?
2 ) Are you buying them for your family ? At least something for them when you are gone.
3 ) What are the opportunity cost of these money if they are not used to buy insurance ?
Think about it. I am sure you know the answer to the above.
It's always good to save. And insurance is a form of saving with protection. But need t know it's a long term saving of about 20 years to get the return. You should also take into consideration of your short term needs.
There is no easy answer to your question. In order to properly answer this question there would be so much more i would need to know What is the purpose of the coverage? How old are you? What kind of insurance is it? What kind of assest base do you have? Do you have a pension? Are u married? so on and so on
Probably not. Ask yourself - what's the PURPOSE behind buying life insurance, and is there a different vehicle that will serve that purpose better, at less cost to you.
Most likely, there is.
No. Though life insurance companies do promote their products as investment vehicles and are technically correct, what they don't tell you is that they're crummy investment vehicles. You can almost certainly achieve a better rate of return with something as basic as US government bonds.
While life insurance is certainly an important part of providing financial security for your loved ones, it is not a good way to save and invest.
What do you mean by lot of money? Have you bought lot of policies?, if you bought one or two policies and also with the saving and investement vehicle. then yes it is wise to invest money in the life insurance,because the growth of money in your life insurance is tax free if it is within the limit.
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