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3 Pages<123
Investing in an education policy
chiaroscuro
#41 Posted : Thursday, December 19, 2019 3:01:59 PM
Rank: Veteran


Joined: 2/2/2012
Posts: 1,117
Location: Nairobi
....deleted....
chiaroscuro
#42 Posted : Thursday, December 19, 2019 3:16:43 PM
Rank: Veteran


Joined: 2/2/2012
Posts: 1,117
Location: Nairobi
[quote=nashx]Every parent wants the best for their children. Hence, we tend to be emotional when it comes to choices on their learning. Education insurance policies use these emotions to profit from us. My goal is to help you make better choices.

https://nashthuo.com/edu...ance-policies-in-kenya/[/quote]




Insurance is not investment and should never ever be judged on its "returns on investment"!

Have you ever wondered why the extra payments are called "bonuses" and not "profits" or "interest"?

Sometimes the total payments on maturity can be LESS than the total premiums!

Think about car insurance; you dutifully pay the annual premium but don't make a claim for ten years. What does the insurance company pay you? NOTHING!

It's the same with life insurance. If you don't die, the insurance company has no obligation to pay you anything!

In the case of a term-life policy, the only obligation is the "sum assured". Anything above that is a "bonus" and, as we all know, bonuses are never guaranteed!

For this reason, it is a grave mistake to think about an insurance policy as an investment. It is NOT!
Queen
#43 Posted : Thursday, December 19, 2019 3:34:44 PM
Rank: Member


Joined: 11/21/2018
Posts: 213
Location: Britain
chiaroscuro wrote:
[quote=nashx]Every parent wants the best for their children. Hence, we tend to be emotional when it comes to choices on their learning. Education insurance policies use these emotions to profit from us. My goal is to help you make better choices.

https://nashthuo.com/edu...ance-policies-in-kenya/[/quote]




Insurance is not investment and should never ever be judged on its "returns on investment"!

Have you ever wondered why the extra payments are called "bonuses" and not "profits" or "interest"?

Sometimes the total payments on maturity can be LESS than the total premiums!

Think about car insurance; you dutifully pay the annual premium but don't make a claim for ten years. What does the insurance company pay you? NOTHING!

It's the same with life insurance. If you don't die, the insurance company has no obligation to pay you anything!

In the case of a term-life policy, the only obligation is the "sum assured". Anything above that is a "bonus" and, as we all know, bonuses are never guaranteed!

For this reason, it is a grave mistake to think about an insurance policy as an investment. It is NOT!


Does your theory also apply to unit-linked Insurance policies?
chiaroscuro
#44 Posted : Thursday, December 19, 2019 4:44:14 PM
Rank: Veteran


Joined: 2/2/2012
Posts: 1,117
Location: Nairobi
Queen wrote:
chiaroscuro wrote:
[quote=nashx]Every parent wants the best for their children. Hence, we tend to be emotional when it comes to choices on their learning. Education insurance policies use these emotions to profit from us. My goal is to help you make better choices.

https://nashthuo.com/edu...ance-policies-in-kenya/[/quote]




Insurance is not investment and should never ever be judged on its "returns on investment"!

Have you ever wondered why the extra payments are called "bonuses" and not "profits" or "interest"?

Sometimes the total payments on maturity can be LESS than the total premiums!

Think about car insurance; you dutifully pay the annual premium but don't make a claim for ten years. What does the insurance company pay you? NOTHING!

It's the same with life insurance. If you don't die, the insurance company has no obligation to pay you anything!

In the case of a term-life policy, the only obligation is the "sum assured". Anything above that is a "bonus" and, as we all know, bonuses are never guaranteed!

For this reason, it is a grave mistake to think about an insurance policy as an investment. It is NOT!


Does your theory also apply to unit-linked Insurance policies?



Not good as insurance policies and not good as investments!

It is best to keep insurance and investments separate. That's the only way one can get the best of both worlds.
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