My relatives have been approached by two different banks selling insurance products to buy whole life insurance with income payouts and using premium financing. Any advice?

Hi Anon,

Premium Financing... I'm not too big a fan of this actually. I think in-directly though the life assured is your relative, the policy owner would actually be the bank up till the entire loan has been paid in full or the life assured has passed.

Also the beneficiary usually in this case would be the bank and not the family members, so if something does happen, the payouts would go back to the bank. So, I do think they should consider these factors as well.

HI there,

I see that your relative is trying to combine retirement planning and whole life together in one. I will personally prefer to keep these 2 plans separate so that in the event of a claim, the other is not affected.