This is my personal view only. Here is my honest view.
BTITR, ( buy term invest the rest) works for some people and will work for almost everyone in the long run. Hence, this is the catch-- long term. I am not talking about ILP here. I seriously can't see much merits in this product. IMO
Why, personally, I think investing is fraught with risks and temptations, especially for beginners
If anyone read about my profile, I blow almost all my savings on CAO, I pick myself and have a go at investing again. You only considered passing PSLE when u have a plan that is tested through bull and bear market. Bull and bear if u are lucky, might be a 7 year period. How long u takes to formulae a core plan, is up to individual, but I can safely say it take years. So perhaps, a decade?
For my case, my forced savings in terms of endowement plan ensure I do not touch my future money. Of course, if I terminate a endowment policy before 15 years, I get back less than what I bought.
In investing, when we make a wrong call, we could worsen it but average down with whatever we have. Let me say, I done that for a few losing S-chips like Fuxing, foreland and China fibre-tech. I average down to almost the last dollar. Thinking I can recoup my losses. I have not gone into leverage play yet, contra, margins, extended settlement and CFD for shorting.
I had a CFD account for a few months, I closed it down to focus on value investing. I might re open it when I think I am ready, but it will not be anytime soon. Even if I do, it will be part of a broader plan to hedge risk and not a profit spinner tool.
I have 2 endowment policies that are maturing in 7 years and a decade plus time. It could be my war chest now that I have a plan on investing, and it could be rolled over into another 10 year plan and settled the allowance part of my son university. If he gets there ( sigh...)
In the meantime , whatever money I used for life plan, will be returned by the time I am old and in the meantime, insured against death and CI and the rest. If coverage is not high enough or premium too siong, a mixture of term and life works too.
Of course, there are some, who are savvy and can buy term, h& s and invest the rest at the beginning without giving big sums to Mr Market, but are those in the majority?
In the long run, everyone should get a shot at investing for better returns and will be better off doing BTITR. That is, if you don't get knock out by Mr market in the first 10 years.
My honest thoughts only. I am not in the insurance line but my sister is, and I have many friends who are not unscrupulous in the insurance line. From what I read in the blog sphere, they are the minority? Most will paddle ILP for the maximum commission, just that I am lucky I did not meet them.
Hence my view might be tainted because I still have a lot of respect for my sister and my friends as well as those in the insurance line, BTITR or use more products of insurance, I believe they all have a place... ILP is the only one I cannot understand till now. Maybe MAS should just allow insurance companies to sell pure investment fund? With track records to see?
Ok, think I ruffle enough feathers.