"Buy TERM and Invest the Difference"Written by YS Koh
The phrase “BUY TERM AND INVEST THE DIFFERENCE” evolves around concept of term life policy which is a basic protection policy and endowment/ whole life policy which has protection and investment/saving features. To put it simply, phrase means that instead of taking up endowment/whole life policy, an individual should buy a term policy for protection and difference between premiums of two policies is to be invested by individual himself to earn some dividend on investment.To agree with phrase "Buy Term and Invest Difference", one need to have conviction and will-power to invest difference in 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 capability to achieve desired return over time. At times, one is lucky to reap a good return from equity market but this is all short-lived when 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 world as one way where it is possible to have both protection and investment at same time. In United States of America, investment-linked life insurance is known as "variable life insurance". It was pioneered by Equitable Life Assurance Society and was offered for sale in 1976. This type of product is recommended if one agrees with phrase "Buy Term and Invest Difference". Investment-linked life insurance policies offer more flexibility to 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 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 client's various investment objectives, risk-reward profiles and investment preferences.
| | 25 Top Reasons Why Businesses FailWritten by Alyice Edrich
Starting a business, whether it be from home, or in an office somewhere, may sound like perfect solution to your working blues, but unless you’re committed to making it work, you can find yourself on losing end real quick. Businesses fail for many reasons. It is important to understand those reasons so that you can decide whether or not you are up to challenge. Those reasons include: 1.Fear—Whether it is fear of success or fear of failure, fear of stepping out of one’s comfort zone to try something new, or fear of trial and error. Fear can freeze a person dead in his or her tracks. 2.Failure to plan. 3.Lack of funding. 4.Procrastination 5.Excuses. Especially making an excuse for any and everything that causes you to stumble. 6.Doing busy work. Keeping busy doing unimportant tasks. 7.Inability to delegate tasks. Sometimes delegation saves your business. If you have a weakness, hire someone who could turn that weakness into a strength. Use others to complete simple time consuming tasks so that you can do other things. 8.Failure to Research. 9.Failure to Market. 10.An inconsistent advertising campaign. It is better to have a ton of small ads on a regular basis than one large ad on a monthly or yearly basis. 11.Your pricing is too low, thus resulting in a negative cash flow. 12.Bad accounting practices. 13.Choosing quantity over quality. Cutting corners is bad business sense.
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