Insurance
I search around and found this, one of the best Endowment Insurance Policy I can find.
Just a reminder that "Endowment Insurance" is a type of insurance you go for when you are aiming at SAVING ! ( read old post for more info )
Basically this plan says if you save $18,000 for 10 years, you will get $300,000 by the year 20th.
That is about D O U B L E your investment, not to mention the F R E E benefits you get from the insurance side.
There is a GUARANTEE payment of $100,000 to your loved ones should you not live through the period ...
Fix Deposit
If you save the same amount of money every year for 10 years .... you will have $18,547 by the end of 1st year ( assuming 3.5% Fix Deposit rate ). That alone, is triple of what you get on above plan. Like wise, every year onward is ALWAYS higher than the insurance plan above.
Pink graph is Fix Deposit @ 3.5% and Blue graph shows the return from insurance return above (P).
By the end of year 20, both FD@3.5% and Endowment Insurance provide similar returns at $300,000Mutual Fund
My personal past 15 years of mutual fund return is 8-12%. So lets says my next 20 years of mutual fund return is at 8% ...
Yellow graph (return M) shows the potential mutual fund return ...
A whopping of $600,000 return by end of year 20 !!! That is D O U B L E again for the other $300,000 !!! By Doing NOTHING but choosing a different finance tool !!
So from the perspective of saving, Mutual Fund and Fix Deposit are clearly better option ...
However ...
Should things don't go as planned and you are no longer able to save ( passed away ), the insurance will pay $100,000 immediately in year 1 comparing to $18,000-$20,000 on the other 2 options.
So from Unexpected Incident point of view, Insurance clearly win over Fix Deposit and Mutual Fund.
At the end, what should you do ? Answer to be revealed soon but actually has been hinted before ...
