Boats For Sale - Fishing, Sail, Power, New, Used

Term Life Insurance - Buy Term and Invest the Difference!

The phrase "BUY TERM AND INVEST THE DIFFERENCE" evolves around the concept of term life policy which is a basic protection policy and the endowment/ whole life policy which has protection and investment/saving features. To put it simply, the phrase means that instead of taking up the endowment/whole life policy, an individual should buy a term policy for protection and the difference between the premiums of the two policies is to be invested by the individual himself to earn some dividend on the investment.

To agree with the phrase "Buy Term and Invest the Difference", one need to have the conviction and will-power to invest the difference in the premium in an investment vehicle that can pay a return higher than that declared by an insurance company. Unfortunately, most of us do not have the capability to achieve the desired return over time. At times, one is lucky to reap a good return from the equity market but this is all short-lived when the downturn occurs, all gains will be wiped out and may even heavy losses.

However, investment-linked life insurance have been pioneered and offered for sale by insurance companies around the world as one way where it is possible to have both protection and investment at the same time. In the United States of America, investment-linked life insurance is known as "variable life insurance". It was pioneered by the Equitable Life Assurance Society and was offered for sale in 1976. This type of product is recommended if one agrees with the phrase "Buy Term and Invest the Difference".

Investment-linked life insurance policies offer more flexibility to the policy owners and they can choose when to top up or how much, or on what portion of their policy that is linked directly to investment performance. Considering the wide range of investment tools available, investment-linked insurance products may be linked to stocks and shares, property or real estate, cash deposits, fixed income securities, government bonds, corporate bonds, unit trusts, investment trusts, other life insurance and annuities. Investment-linked funds have been created to suit the client's various investment objectives, risk-reward profiles and investment preferences.

With several insurers offering a variety of investment-linked insurance products, it is now possible for an insurance policy holder to enjoy protection and at the same time to invest solely in one fund or a combination of funds, subject to certain limitations, such as a minimum of 20% of his investment in each fund selected. An insurance policy holder may switch his investment between funds when his investment objectives change.

As an example, an Income Fund which is managed by a company's in-house fixed-income investment team comprising individuals with more than 20 years of experience in the financial sector. This fund is suitable for policy owners seeking stability of principal and a higher return compared to bank deposits but with acceptable risk to capital invested. The fund is principally invested in fixed-income securities, treasury products, money market instruments, collective investment schemes, and any other permissible instruments or investments prescribed by the relevant regulatory bodies to provide a steady return to policy owners through accumulation of capital over the long-term.

Without the existence of investment-linked products, one may disagree with the phrase and may not "buy term and invest the difference" but instead to take up a traditional participating life insurance product that provides life protection with an element for investment. The premium may be higher but it leads to wealth creation for the future.

YS Koh is an independent Certified Financial Planner and a licensed financial investment broker by practice. She writes often and provides insights and viewpoints for her blog "Life Insurance Information Portal" (http://get-term-life-insurance-info.blogspot.com)

This Life Insurance Information Portal is designed to provide you with unbiased information and useful tips, free from http://www.get-term-life-insurance.info

MORE ARTICLES:

Charter Boat Operator Stabbed by Leaping Marlin: And Other Bizarre but True Fishing Stories
The new book "Fishing's Greatest Misadventures" (Casagrande Press, November 2008) contains true stories of fishing disasters, unlikely catches, pranks, and other bizarre calamities. Inside the pages you'll discover a 200-lb catfish that sinks an angler's boat, a pike that destroys a lake cabin, and a man who put six holes in his boat attempting to shoot what he had just landed.

The Right Boat Trailer Can Protect Your Boat From Hazards
Owning a boat is just the beginning. In order to get your new boat from one location to another, you're going to need a boat trailer. In fact, boat trailers come in many different styles and weight capacities, so a little research in advance will help you make the right decision when it comes to deciding what kind of boat trailer you need.

Boats.org's New Complete Boating Weather Center "Outshines" All Others
Boats.org adds weather, tides, solunar tables, and feeding times to their boating site.

Boat Covers - That Boat Needs Care!
So you have finally bought the boat of your dreams, but the dreams have become a nightmare, when you realize months later that your prized possession isn?t looking that classy as when you initially bought it. So what do you think went wrong; did you make a bad investment or could it be that the type of boat cover you bought to protect it was a bad choice?

From Personal Belly Boats to High Performance Racers - An Overview of Inflatable Boats
Inflatable boats, also called rubber boats or dinghies, have been around in one form or another for thousands of years. They now come in many different sizes and models and include inflatable kayaks, sport boats, and inflatable catamarans.

Boat Cover: Does Your Boat Need One?
For many people, buying a boat is an investment and the culmination of a lifetime of saving and something that you and your family will spend many happy days on. Boating is a wonderful way to celebrate an important occasion with someone special or to spend a lazy day on the water fishing with friends. Owning a boat is a wonderful experience; however, to keep your boat in good working order you must properly maintain it. This is why you will find the use of a boat cover absolutely imperative. A boat cover will provide durable, lasting protection for your boat investment

Repossessed Boats For Sale-How To Find The Top Repossessed Boats Available
Buying repossessed boats for sale offers a great opportunity for you save a lot of money in your next boat buying experience. A repossessed boat is something that the bank or financial institution takes back from somebody who defaulted on a loan payment. Therefore, the bank is in a hurry to get rid of these vehicles, and you'll often times get the dirt cheap prices.

Start You Search For Used Bass Fishing Boats Online
Most fisherman at some point in their fishing live will start to think about owning a boat And if you ever are at that point that you have set aside enough money and start to look around for a boat that you could buy, maybe you should look at used boats first

How To Get A Boat Loan - Boat Loans in Australia
Getting a boat loan is not very difficult with numerous lenders competing for your time and business. It is however important that you prepare before you seek financing from any one of those lenders. Here are some issues that you may like to look at.

Summertime And Boats... And Boat Insurance
Early summertime is the time of year, when boat owners start getting back on the water. I am speaking about pleasure boaters, those who use their boats to make a living fishing are on the water when the fish are under it.

Bass Boat Cover
Weather Shield Are you an outdoor lover If yes then you might love to go boating and if you have your own boat then you would love to take care of it with your best means

Bass Fishing Boats: Advice For The First Time Buyer
Bass fishing is a great past time that many people, both young and old enjoy. Once you get the taste of bass fishing, you might decide that you want to venture into buying your first bass fishing boat. This is truly an exciting experience, so it is best that you get some advice, being a first time buyer of a bass fishing boat.

Great Lakes Boat Top Offers Factory Boat Covers and Tops to Sea Ray Boat Owners
Great Lakes Boat Top, maker of high quality marine canvas for sixteen boat manufacturers has recently launched a promotional campaign targeting Sea Ray boat owners in need of replacement boat enclosures and covers such as bimini tops, cockpit covers, camper tops and a variety of other types of boat covers.

How To Choose The Best Bass Fishing Boat And Lures
Bass Fishing Boats and Lures

Boat Covers - Why They Are An Essential Boat Accessory
Boat covers play a very significant role in the protection of your boat. Purchasing a boat is a heavy investment, and it is also a very valuable asset if you like to spend a lot of time on the water. Therefore, your boat requires complete safety from dust, grime, dirt and airborne particles.