A ‘no-frill’ life insurance is one that will give your family a sum of money if you pass away. The reason why you need a life insurance is because if you are the financial support for your family, the money will be useful to help your family to get through the difficult period.
Such insurance is good, but there is a better alternative – rental property.
Imagine if you own one or a few rental properties. If anything were to happen to you, your family can still live on the rental income. Isn’t that better than life insurance?
Once you have even ONE rental property, you will not need any life insurance. You may still buy insurance to cover things like accidents or illnesses, but save on life insurance because you already have a better alternative.
Of course, it may cost a lot more to buy a property than a life insurance. But if you plan and work on it, it will happen.
Personally, I bought all kinds of insurance in the past. But if I were to re-start buying insurance today, I’ll only buy one that covers me against accidents and critical illnesses. I’ll not buy any life insurance or any investment-linked insurance, for the reasons we’ve discussed earlier. Continue reading