Life insurance combined with investment

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PostPosted: Tue Apr 14, 2009 6:13 pm   Post subject: Life insurance combined with investment  

Hello,



Right now I'm thinking to apply for a life insurance. But I'm still wondering, if there's any insurance that also enable us to invest some of our fund in stock share.



If there's one, it will be great. I mean instead of getting a benefit from it we can make our money grow this way.



Laughing

lucy77
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PostPosted: Wed Apr 15, 2009 2:36 am   Post subject:   

Life insurance is not an investment. I repeat, life insurance is not an investment. What state are you in?

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PostPosted: Wed Apr 15, 2009 3:51 am   Post subject:   

Certainly there are insurance plans available if you want a steady assured income over a period of long term, you might consider annuities as part of your 'Retirement Planning' strategy.

One type of fixed annuity is called 'Fixed Indexed Annuity',It allows you to earn interest over a period of time with minimal risk.Fixed Index Funds are long term savings products and most of the time it outperforms inflation.Also these policy products protects downside market risk.

'Aviva' offers Fixed Indexed Annuity' Plan as long term retirement strategy.



But I personally think, people should not mix investment and insurance products.There should be different portfolio for insurance and for equity.

Just ask yourself,If you want to compute your regular daily/monthly expenses what will you likely to buy?

A. A Calculator

B. Mobile Phone

C. Computer.

If your answer is "a calculator' then treat insurance and equity as a separate strategy.

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PostPosted: Wed Apr 15, 2009 8:25 am   Post subject:   

lucy77, the answer to your question is "yes". Variable life and variable universal life will allow you to do this. Very few companies sell variable life. Many sell variable universal life. I'm convinced that if people truly understood how this product works, almost nobody would buy it.

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PostPosted: Wed Apr 15, 2009 8:39 am   Post subject:   

Hi friends..

Quote:
But I'm still wondering, if there's any insurance that also enable us to invest some of our fund in stock share.




Life insurance has good returns. It's true that under the current economic scenario the insurance companies are doing the balancing act through their investment returns. But that doesn't mean we'd be provided with opportunities to direct our carriers regarding investment options. We have no right to guide the carriers regarding what they're gonna do with the excess of premiums over claims.



Steven
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PostPosted: Wed Apr 15, 2009 10:13 am   Post subject:   

you should think twice while writing some thing invest some of our fund in stock share .Life insaurance enables your children to live a better and a peaeful life

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PostPosted: Wed Apr 15, 2009 3:50 pm   Post subject:   

shray0686,



Quote:
you should think twice while writing some thing invest some of our fund in stock share .Life insaurance enables your children to live a better and a peaeful life




Dude, I really want to get my hands on some of whatever you're smokin.

Cell phones, ipods, X-Box, Wii, MySpace and any number of other outlets enable children to live better and, I suppose, more peaceful lives. As far as the life insurance goes, children haven't a flipping clue.



If dad gets t-boned by a drunk coming out of TGI Fridays and doesn't come home, mom can use the life insurance to keep the kids happy and this makes her life more peaceful. In the meantime, dad pays for the policy, the kids are happy and mom's happy. Everyone knows when mom's happy it's more piece-ful for dad ........


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PostPosted: Wed Apr 15, 2009 3:50 pm   Post subject:   

ooops. peaceful



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PostPosted: Thu Apr 16, 2009 12:17 am   Post subject:   

Well i think it can be possible for getting both insurance and investment at a time.

I made a cntact with my insurance agency and asked about it.They said that i can invest in their shares for sure.You just have to buy their shares and get more and more money to invest there.As we all know that insurance is the best carrer now a days and many new inventions and plans are their so their market needs are raising and thus as you invest there your money too get raised and you get some bigger benifits.

But if you are thinking that you can get more and more by directly asking them to invest then it is the most foolish thought as per me.as they are the insurance makers and not any bank to make depost or broker to make investment.Atleast i have never found such a strange thing till now.

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PostPosted: Thu Apr 16, 2009 1:44 am   Post subject: Thanks guys !  

I know insurance and investment is different things to mix up. But it's good to have them both in the same package, some of the reply like lovelyppl reply state that this option is possible. I think I might contact my insurance agent about Aviva.

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PostPosted: Thu Apr 16, 2009 2:54 am   Post subject:   

Quote:
I know insurance and investment is different things to mix up. But it's good to have them both in the same package, some of the reply like lovelyppl reply state that this option is possible. I think I might contact my insurance agent about Aviva.






No, it's not. Ask people how their VUL's (variable universal life) are doing these days. Insurance is meant for death benefits. Investments is meant for growth of money. They do not mix.



If you have a $500,000 policy with $0 cash value and you die, $500k is paid out. If you have a $500k policy with a $200k cash value and you die, the insurance company takes back the $200k and pays out the $500k. If you have a $500k policy with a $499k cash value and you die, the insurance company takes back the $499k and pays out the $500k. You're better off buying permanent (UL) insurance with a minimal cash value at the lowest price and taking the difference and putting it into a fixed annuity or something.
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PostPosted: Thu Apr 16, 2009 9:34 am   Post subject:   

I don't like VUL, but it should at least be described correctly.



In your example, when the insurance company is "taking back" the $200,000, that's not what is happening. Instead, the client is only paying for $300,000 of life insurance. If the client wanted to keep paying for $500,000 of life insurance, the death benefit would be $700,000.

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PostPosted: Thu Apr 16, 2009 1:18 pm   Post subject:   

Quote:
I don't like VUL, but it should at least be described correctly.



In your example, when the insurance company is "taking back" the $200,000, that's not what is happening. Instead, the client is only paying for $300,000 of life insurance. If the client wanted to keep paying for $500,000 of life insurance, the death benefit would be $700,000.




I understand that, but it's easier for clients to understand it in the scenario described.
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PostPosted: Thu Apr 16, 2009 1:52 pm   Post subject:   

If a client is understanding something that isn't correct, what is it that they are understanding?

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PostPosted: Thu Apr 16, 2009 2:09 pm   Post subject:   

It helps illustrate the point that they're not getting their money + the benefit.

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