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"Buy TERM and Invest the Difference" Business Articles | May 26 , 2005
The phrase ?BUY TERM AND INVEST THE DIFFERENCE? evolves around the concept of term life policy which is a basic protection policy and the endowment whole life policy which has protection and investmentsaving features. To put it simply, the phrase means that instead of taking up the endowmentwhole life policy, an individual should buy a term policy for protection and the difference between the premiums of the two policies is to be invested by the individual himself to earn some dividend on the investment.
To agree with the phrase "Buy Term and Invest the Difference", one need to have the conviction and will-power to invest the difference in the 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 the capability to achieve the desired return over time. At times , one is lucky to reap a good return from the equity market but this is all short-lived when the 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 the world as one way where it is possible to have both protection and investment at the same time. In the United States of America, investment-linked life insurance is known as "variable life insurance". It was pioneered by the Equitable Life Assurance Society and was offered for sale in 1976. This type of product is recommended if one agrees with the phrase "Buy Term and Invest the Difference".
Investment-linked life insurance policies offer more flexibility to the 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 the 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 the client's various investment objectives, risk-reward profiles and investment preferences.
With several insurers offering a variety of investment-linked insurance products , it is now possible for an insurance policy holder to enjoy protection and at the same time to invest solely in one fund or a combination of funds, subject to certain limitations, such as a minimum of 20% of his investment in each fund selected. An insurance policy holder may switch his investment between funds when his investment objectives change.
As an example, an Income Fund which is managed by a company's in-house fixed-income investment team comprising individuals with more than 20 years of experience in the financial sector. This fund is suitable for policy owners seeking stability of principal and a higher return compared to bank deposits but with acceptable risk to capital invested. The fund is principally invested in fixed-income securities, treasury products , money market instruments, collective investment schemes, and any other permissible instruments or investments prescribed by the relevant regulatory bodies to provide a steady return to policy owners through accumulation of capital over the long-term.
Without the existence of investment-linked products, one may disagree with the phrase and may not "buy term and invest the difference" but instead to take up a traditional participating life insurance product that provides life protection with an element for investment. The premium may be higher but it leads to wealth creation for the future.
Article Tags: Investment-linked Life Insurance, Investment-linked Life , Life Insurance, Policy Owners
Argan Oil Market Demand, Development and Restraint Analysis by 2012-2022
by Suraj2051 · September 12, 2018
12 Sep 2018 鈥撀燝lobal Argan Oil Market is predicted to reach USD 1.79 billion by 2022 owing to the increase in demand for luxury cosmetics and growing consumer inclination towards organic ingredients. Argan oil is a natural material extracted from the oleaginous almond of Argan tree, which is rich in fatty acids , and other important nutrients beneficial for human health. Over the years, argan oil is emerging as a food delicacy and as an anti-aging skin cosmetic product. It is found in specialty shops in both rural and urban markets in Europe and is known by a lesser population.
Additionally, there are numerous internet websites, which deal in argan products through online. However, the oil is regarded as 鈥榳orld鈥檚 most expensive vegetable oil鈥? The growing acceptance for argan oil in the skin and food industry is expected to drive argan oil market with a CAGR of 19.6% in the forecast period.
Request Sample Copy of this Market Research @聽 The growing health awareness among consumers regarding healthy oils majorly impacts the market. The wide applications of this oil in multiple industries is also fueling argan oil industry globally. Mass-market penetration is resulting in introduction of new products in retail sector across various regions. Rising focus on research & development has led to modernizations in the product line and has augmented the market share of oil in the global market. The rise in market demand for food items with greater nutritional value supports the sale of argan oil worldwide , creating a positive impact on the market.
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