BeamaLife Blog

Too often, you have been advised to buy term insurance and invest the difference in the stock market for better return. Even though this sounds convincing on paper, it lacks verifiable facts, ignores feasibility of continue investing in stock market and demonstrate ignorance of life insurance tax advantage. When you calculate long term compounding tax burden of taxable investment, consider the lack of discipline to save regularly and the opportunity cost of term insurance premiums; it is very difficult for this advice (buy the term insurance and invest the difference in stock market) to succeed.

Please let me know if you think otherwise and can prove your opinion with verifiable facts.