An Untold Perspective of Life Insurance
26 May 2021 | 8 mins read
The tagline of IPA = Impacting People Always
Impacting people’s life is what we set out to do through our planning service, from day one.
There is nothing more appropriate than sharing with our readers, one fundamental but a stripped-of-sales-motivation perspective of life insurance, which if at all, is hardly told.
IPA Advisory was founded in 1991, eight years after its founder first entered the industry
Today, IPA is an established one-stop financial services practice group operating on an open financial platform.
The planning services of its licensed team members are anchored on the full range of investment products, investment-linked policies and insurance products.
Open-ended Pay-on-Death (OPD) Policies
An OPD policy is one where the contracted sum, also known as face amount or sum insured, is payable on death, and in most cases, also payable when
the person on which the policy is taken out suffers Total and Permanent Disability before age 65 70 or thereabout In a few cases, it is also payable upon Terminal Illness.
Given that death, the event on which the contracted sum is payable is but every human’s eventuality, the act of subscribing (buying) the policy is a conscious move to capitalize on one’s eventuality (death). And by itself, the policy is but just the one of a kind device that enables us to “cash in on our out time”.
In short, when we subscribe to an OPD policy, we are leveraging on a payment contract that promises to pay us what may be described as our most cherished, when our inevitable expiry date arrives.
The bottom line
In view of the aforesaid indisputable facts, unless the ratio of the expected inflow and total outflows is deemed to be economically unviable, no one needs to have a reason to subscribe an OPD policy where the pull-factor is a built-in characteristic.
The wish or want that the contracted sum serves to address or fill, which drives most people’s buying decision, is but an external motivation or impetus – a push-factor.
Last but not least, the concept of eventuality capitalization, we submit, is a “the more the merrier” wealth creation idea, albeit it only benefits, well, your very own loved ones. But more importantly, to non-elite families, it is the ticket to move to the next socio-economic class or at least opens the door to opportunities often only accessible to those in the upper-middle class.
Our parting message: Not why must you. Rather, why not?
When you’ve paid off some of your debt and put aside enough money, now is a good time to treat yourself. You can splurge on the things you really want. Spending wisely and buy items that are useful for you, it becomes an investment. The best present that you can get for yourself is by having a solid financial plan.
DISCLAIMER: The contents including images, videos, audio and written texts found on the author’s social media page and other platforms does not constitute a research report and it does not have regard to the specific investment objectives, financial situation and particular needs of any specific recipient of this message. All material and content are strictly for informational purposes only. The contents posted should not constitute financial or investment advice and should not be considered as an offer, or solicitation, to deal in any of the securities or investment instruments mentioned in this message. The author may, from time to time, own or have positions in any of the securities mentioned or referred to in his content or any securities related thereto and may from time to time add to or dispose of or may be materially interested in any such securities. All thoughts are the author’s own.
Knowing where to start
Starting out on a clean slate with financial planning can be a daunting one, but there is always somewhere to start if you feel hesitant to speak with a financial consultant before doing any research. More often than not, you would already have some form of insurance protection before you know it. Arm yourself with the right information and start your financial planning process right!
If you are ready to kick start your financial planning review, reach out to us for a conversation.
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