Savings: invest in a life insurance or bank?

[Gjhone]

---

I just invested in a Condotel at Cityscape, 15k monthly for 25months, and nikuha sadko og Insurance sa PRU LIFE 7years to pay. 20k per month

[euijin]

stock market na lang or kuha ka condo(pre-selling)... buy&sell

[Bears Grill]

From what I've read from so-called financial gurus like Suze Orman, they don't seem to recommend purchasing insurance policies with an "investment component" in it, otherwise known as Whole Life Insurance policies. I agree with Ms Orman. When you really compute the annual rate of return of these products, they usually are within 5-6% range. The bad part is that the premium is quite hefty. But the worst part is that you can't touch your money for the next 20-30 years!!! I'd rather invest the money in a long-term government bond that can fetch 8%; I can always sell them in the secondary market when I need cash.

Keep it simple. When it comes to Life Insurance policies, just buy term-life insurance products. Don't think of it as an investment but rather you're purchasing some peace of mind. After all, you're buying it to insure the financial security of your loved ones. If you're single, why bother?

[makie]

There are steps that you must consider in achieving financial security or at least peace of mind. Having a health care and life insurance plans comes first in the list. Why? Times are very uncertain and you'll definitely need protection (income protection) just in case you lose your income generating capacity. If you're sick and hospitalized, health care (HMOs) will cover your hospitalization bills while health insurance (coming from life insurance companies) provide you allowances or replaces your income while you're hospitalized and not able to work.

If you're married and have kids, the more you need life insurance. As long as somebody is depending on you financially, you'll need life insurance.

Put just a few bucks in the bank just for emergencies. Money will never grow in the bank especially if we put inflation into the picture.

My suggestion, compute your financial needs and get a coverage for that (life insurance), put a few in the bank, and if you have some left, invest in mutual funds. Why mutual funds? Because it is very convenient and liquid. Other than mutual funds, you can consider bonds and other fixed income securities. But the thing is, fixed-income securities normally give lesser yields compared to mutual funds and stocks but its a lot better than savings accounts and time deposits.

Summing it all up:

*Get a health care and life insurance plans (with health riders) for protection
*Save a few (at least 3 months income) in the bank
*Invest the rest. If you invest, be sure that the rate of return is higher than the inflation rate (3% to 5%). If your rate of return is lesser than the inflation rate, you investments is not growing

[jedophiledotph]

I just invested in a Condotel at Cityscape, 15k monthly for 25months, and nikuha sadko og Insurance sa PRU LIFE 7years to pay. 20k per month

Wala diay nimu gi quarterly or by 6 months miss? Mas d bug.at man cguro. hehe

[jedophiledotph]

From what I've read from so-called financial gurus like Suze Orman, they don't seem to recommend purchasing insurance policies with an "investment component" in it, otherwise known as Whole Life Insurance policies. I agree with Ms Orman. When you really compute the annual rate of return of these products, they usually are within 5-6% range. The bad part is that the premium is quite hefty. But the worst part is that you can't touch your money for the next 20-30 years!!! I'd rather invest the money in a long-term government bond that can fetch 8%; I can always sell them in the secondary market when I need cash.

Keep it simple. When it comes to Life Insurance policies, just buy term-life insurance products. Don't think of it as an investment but rather you're purchasing some peace of mind. After all, you're buying it to insure the financial security of your loved ones. If you're single, why bother?

This is one of the biggest mistake my mom did. She was 55 and mu mature iyahan plan after 30 years. What the &*$%, unsaon paman niya'g enjoy ani da. Maayoha sa agent gyud mu palami oy.

[jovipeorliohacokijo]

I was actually invited to invest for a LIfe insurance. Yes, its nice to know na insured ta. I can pay what the insurance kay naa pako work pero ang problema nako, what if wala nako work? If i do, i would also need to stop spending for the gadgets or lifestyle i want. Please ko advise if its best to put my savings in an insurance company or would it be best to save it sa bank.

no need for insurance... don't set your mind nga someday wai kai work... ang pagpundo sa kwarta sa bangko is a sign of poverty... receive money by hardwork then spend it for yourself and a part of it should be given to anybody that needs money... mao gani gitawag ug currency... that's a sign of prosperity

[buyogon]

Adto sulod kung asa ka na sweto sa mga pasikot2 kay lisod na isulod kung taphaw ra ang nahibal-an

[Metz]

no need for insurance... don't set your mind nga someday wai kai work... ang pagpundo sa kwarta sa bangko is a sign of poverty... receive money by hardwork then spend it for yourself and a part of it should be given to anybody that needs money... mao gani gitawag ug currency... that's a sign of prosperity

based on experience bai?
agree ko tanan except on no savings and no insurance. kay murag wala najud guarantee for job security and even in business, so we need savings for that. But sakto rapud nga amount, the rest must be invested kay negligible kaayo ang interest sa bank.

as for insurance, case to case basis jud na.
daghan kaayo naay life insurance diri sa pinas nga

• wa kasabot sa ila plan, basta mo interest. not knowing that the interest they earn is way too low.
• under insured - if you earn 18k net per month with serious responsibilities, you need at least 2M life insurance.
• way gamit para nila(i.e. young single professionals with no responsibilities). Example sa mama ni jedophiledotph, unless ang intention sa iya mama is to cover burial expenses and inheritance tax(can be minimized).

[icon_king]

duha nalang ang kuhaa. para cgurado ang ugma ang imung binlan.