Whole Life by Limited Premium

Hi Mr. Tan,
I understand that Buy term and invest the rest strategy and I believe this strategy is better, but would it be risky to buy all insurance on term insurance? Shouldn't one buy at least one small whole life insurance to hedge as well as to keep it for life. Term insurance do not cover for life, if so , it would be very expensive as well.

Should the term insurance lapse for any reasons, the person would be without any insurance coverage. Shouldnt one buy one limited whole life payment for WL, like what you did?

REPLY
Limited payment whole life has high expenses and does not give value for money. When the Term insurance expires, you will have sufficient savings (if you have invested the savings) and you do not need life insurance any more.

I bought whole life insurance many years ago, but they are not necessary for me now. I get a poor return on these policies. Some of them have still not reach the breakeven point after more than 10 years. Anyway, they represent only a small part of my total savings, so it does not matter to me.

Read this FAQ:
http://www.tankinlian.com/faq/savings.html