As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

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Wednesday, 22 March 2017

Life Insurance Is Definitely Important Up To Point X In Our Life Journey!

In personal finance; we have to be competent over the three scopes covering saving, insurance and investment through our life journey.

On that night; one guy asked Uncle8888 for his view on life insurance; as usual he would illustrate his view on the flip chart with marker pen. LOL!

Now; he illustrated the same view with better diagram here.

Read? My Long Term Personal Financial Goal - Self-insured Fund by 60!!! (2)


  1. Life insurance should be cover up to point X, i.e when one does not has any liability of kids education, living expense, house mortgage, etc.

    However, if continue to hold the life insurance policy, it will become legacy for children. Since that will be the case, let the children continue to pay the insurance premium and at the end they will inherited the policy when one demise. lol.

    1. If want to cover life insurance till point X, it would better to purchase Term Insurance instead of Life Insurance.

      Term insurance will expire at point X but it is at least 70% cheaper than life insurance.

  2. Don't forget after point X, as long as you are alive it is your Nett Asset accumulating cash too(if you no problem continue paying premium).

    Can consider as part of Emergency fund too if really unforeseen things happen.

    Instead of surrendering the policy, you can sell at a better value/price in the market, when you really have to do it.

    1. Alamak!

      Me & wife have to pay until 85.

      My son have to pay until 55 but he started at age 2.

      Seriously, i considered as forced saving now as the interest earned per policy per year is much more higher than bank FD rate now.

      Besides, (touched wood) our lives are also covered to benefit our beneficiaries.

    2. It is how many people are thinking of forced saving instead of becoming savvy savers or competent investors. This is how we are sold by insurance industry

  3. You are right man!

    i did not purchase (aka refused to purchase when approached many times) any life insurance until the age of 40 when my son was born.

    It was a bit funny, that was also the year i decided i want to learn how to be an investor.

    It seemed i wanted both at that time- saver & investor

    But i didn't think about it at that time.

    It's only when after 25 years(my age was 65 then) of paying premium, got good interest return/year that i realise i can consider these 3 WLs as better then extra cash in the bank.

    Or better than FD in the bank.

    If, when FD rate is higher then may sell or cash in policies.

    May be Insurance company will track bank's FD rate closely.


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