Savings: invest in a life insurance or bank?

[Dorothea]

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.

Life insurance is not an investment. Life insurance is there to protect your loved ones should you meet with the Maker in an untimely fashion. This is especially important when you have kids. The life insurance money they get upon your death, ideally, should replace what you would have made in your working life. In a similar fashion, putting money in the bank, that's not an investment. Savings accounts are more suited for emergency funds. Investments should have at least 6 to 8% rate of return to be worthwhile.

[jowng85]

insurance oi.. banko ray madato if ibutang ninyo inyo money sa ilaha.. ipautang ra na nila

[jeaneth]

ok rman cla duha ky one way or another it will help you man.

[makie]

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?

Every person have different needs and for sure there are some people who would still opt for whole life insurance. Whole life insurance is very important for estate planning. As we all know, estate taxes are not cheap and we're talking about in the millions or even tens of millions range. If the old folk has a whole life insurance coverage, at least the children can use the insurance that was left to pay for the estate tax leaving the whole estate to them, untouched.

As for the investment portion, IMO, that is a bonus. If people just understand and don't overlook estate planning, they'd appreciate whole life insurance even more, even without the investment portion. The investment portion is in fact there to make it more handy, to limit the paying period yet maximizing the insurance coverage to age 100.

I agree with what most financial gurus are saying and mathematically, a lot of investments outdo the returns of whole life insurance with investments and VULs/ULPs. Term insurance will only cover/protect for a minimum number of years and should the insured reach 60, chances are he can no longer avail an insurance. Though it makes sense because chances are his children are already working and earning during that time hence nobody is depending on his income anymore but what about the estate tax? If that person dies, good if the children have millions to pay for the estate tax. Even if they do, that is a huge chunk of their fortune. Estate tax is a fraction of the entire estate hence the bigger the estate, the bigger the estate tax.

[blueraiden]

engage nalang ka business TS like invest2 kas mga stock markets then maningkamot ka nga mu gain. Mao nay sakto nga savings.

[paintableguy]

best to save in a bank, tan awa to ang nahitabo sa cap, sa PPLIC daghan kaaug nagmahay, also sa bangko aware pud ka naa pud mga scams, so be sure to deposit your huge amount of sum sa trusted banks, kabalo naman siguro mo kung unsa mga trusted banks sa ph, kay di lalim ngitag kwarta daun binuangan lang sa mga scammers..

[Metz]

put emergency funds(3 to 6 moths salary in a bank)

invest in

liquid assets

mutual funds(if you are lazy and just happy with 10% to 20% per annum )
stocks(if you are willing to learn)
life insurance( if you have investments, and dont buy LI w/ investments. just settle for PURE LIFE INSURANCE)
healthcare( if walay giprovide imo company)

solid assets(yuta, balay, apartment) when ready na. ayaw ni unaha kay lisod ibaligya if naay emergency.


know the difference:

pre-need = any investment program nga wala gi monitor sa insurance commission. mostly educ, burial plans.
insurance company = monitored by Insurance commission, so naay guarantee to a certain extent ang imo investment kay gimonitor man sa IC. However, IC is a govt entity and we know na how good they are.


dont invest in

-pre-need companies like CAP, or burial plans and education plans not offered by any insurance company)
-scams like double your money in a month.

[tikotakz]

bank akoa. hehee

[Mapz182yo!]

Sakto ang uban nga first nang reply, invest your money in a good business.
Kung bank magasto nia (avoid lng jud), kung life insurance, limited ra magamit.
Kung business always earning, always saving, nia magamit pa sa bsan unsa na panginahanglan ang kwarta (ikaw buot).
Plus, maka bintaha pd imu mga anak, apo etc.. kung in.ana jud ka established inyu business in a way nga wala naka, naa pa sila naka inherit

[Usman77]

The best is to diversify.

1. Business
2. Bank deposits
3. Invest in Mutual funds, stocks, etc.
4. Buy life insurance