Whole Life Plans

What are the likely outcomes for the excess money You have saved?
There are only 3 possibilities for your money.
1) You consumes or spends the excess money
If a person is unable to have the discipline to save the excess money and is more likely to consume or spend , then a Whole Life policy will suit this person better. This is because, at least, the Whole Life policy will 'prevent' him from spending the balance and 'force' to save for retirement. There are many people who simply can't save in a very discipline and regular manner, and Endowment and Whole Life policy has solve their problem. The only unfortunate thing about saving is that 'force' is usually needed; it is either by you yourselves or someone else.
2) You saves it in the bank
If this person is going to save the excess money in the bank, then , in comparison, the Whole Life policy might be a better choice than a Term policy. Though saving money in the bank offers liquidity, it also offers you lots of temptations to spend through its convenient withdrawal facilities like ATM cards, Internet banking, NETS, etc. Conversely, a Whole Life policy is indeed not liquid and flexible enough to provide for emergency funds. as it is not meant to be. it is designed to prevent you from spending it anyway. However, if liquidity is a concern, then you just have to make sure that you have the required liquidity in the bank before you buy a Whole Life policy. Prudently, this goes the same too when you are investing in unit trust, committing a mortgage loan or car loan etc.
3) You invests it
This is the only outcome whereby the Whole Life policy might not seems to be able to offer itself as an obvious alternative. And it is because of this, there are always proponents of 'buying term and invest the rest'. Whether you should 'buy term and invest the rest' or you should simply buy a whole life policy, can be anyone's guess. This is because it all depends on your situation and needs. There is no one clear-cut answer. A whole life policy does not require you to be concern about the investing aspect while 'buy term andinvest the rest' does. Hence it is important to understand some of the pitfalls of investing itself.

It is a matter of what you can do with your excess money…