Money is used for...

Zouk Out 2011 was last night.

With line-ups like Armin Van Buuren, Lady Tron and Avicii, it's no wonder that tickets were going at $98 a pop.

To be honest, i didn't go. (*gasps* TRAVESTY!!!) but i feel i'm too old for these things. i've done my 'time' partying many years ago, plus at those prices, i'd rather curl up with a bottle of wine at home with a nice movie and a nice body to cuddle with :)

i know a lot of people that did go though (as they do every year), and definitely, they were NOT disappointed. there's really nothing like a night out with your best friends, nothing to worry about but how to get the best spot on the dance floor or whether that hot guy/girl in the corner is looking at me. the next day, unforgettable memories, forever etched in your mind.

ah, sweet youth!

but that really got me thinking. at $100 for a night of passionate dancing, drunken revelry and mind-blasting music, what else could we use that $100 for?

disclaimer:

i do not have anything against said
"passionate dancing, drunken revelry and mind-blasting music"
nor spending money on above-mentioned issue

Some popular answers:

1. Donate to a charity
2. Buy 20 Mac Value Meals / 50 Pilot Pens /
3. Buy a new Computer Game/Dress/Pair of Shoes
4. Have an expensive dinner with someone you love
5. Go on a holiday / Visit Universal Studios Singapore
6. (fill in own wants/desires...)

where money is concerned, people want to spend on something that has intrinsic value to themselves. in the case of zouk out - an event that's a once in a lifetime chance to experience world renowned DJs on Singapore *ahem* Sentosa's shores. and money can easily meant different things to different people. to anyone that has spent $100 easily on a night out partying, or a fancy dinner, or even on little trinkets, or shopping for the latest fashion, money buys something that could make you happy

The attached URL @ Yahoo! Answers has some really interesting replies.

Top Reply: "Why not buy something that can make you MORE money ? !!!"

And similarly, why not buy something that can guarantee peace of mind for yourself and your family?

that being said, no one thinks that buying insurance can make you happy because no one wants to think about the implications of protection, i.e. something bad has to happen before one receives anything. but the intrinsic value of buying insurance, does has something of much greater significance.

I've worked on some proposals in my short time in insurance, some clients have a $100 a month budget to start off their basic portfolio of protection. i won't go into specifics, but let's just say, that for this amount, it's highly possible to get a fair amount of cover for all the 5 aspects; even more so if you're ok with spending $100 a night.

it might not mean a lot to put aside some money for something that seems only a probability and even more so uncomprehensibly in the far future, but insurance could very well protect your lifestyle if anything should happen.

and ensure that peace of mind that we will have the means to party on another day.

Be protected everyone!
Jessica

Whole Life Vs Term Life

Alright, now that I've shared a bit about life insurance, I'd just like to share a little bit about what some people have been asking me - it's about the differences between Whole Life and Term Life policies. 

It's an important question for those that are in the market for cover on death and disability so I thought i'd just compile just one or 2 responses that I felt sums it up pretty well, to help you get a basic idea:

LifeInsurance.net

When shopping for life insurance, you face the same decision you must make when you're in the market for a new car: lease or buy? Those aren't the words used for insurance, of course, but the concepts of term and permanent life insurance are similar to leasing and buying.

Term insurance is like leasing a car. You purchase death benefits for a specified period --usually 5, 10 or 20 years. When the period is over, it's like turning in the leased car. The deal is done and you walk away.

Permanent insurance, on the other hand, is like buying the car you plan to drive forever. Permanent insurance stays in force as long as you live. It will pay a death benefit, and it accumulates a cash value, too.

The two kinds of life insurance are appropriate for different situations. Term insurance is designed for those who are interested solely in a death benefit; for example, a young father who wants insurance so that his child will be able to afford college if Dad is not around to pay the bills. There is no cash value to this kind of insurance, so often the premiums are lower than they are for permanent insurance. But as the insured gets older, the premiums increase.

Permanent insurance combines a death benefit with a cash value, or savings component, which grows tax-deferred. Many policyholders borrow from the cash value to pay for things such as a college education, or convert their cash value into a retirement fund.

MSN MONEY

As you might expect, permanent life insurance premiums are more expensive than term premiums because some of the money is put into a savings program. The longer the policy has been in force, the higher the cash value, because more money has been paid in and the cash value has earned interest, dividends or both.

The debate is all about that cash value. If you buy a policy today, your first annual premium is likely to be much higher for a permanent life policy than for term.

However, the premiums for permanent life stay the same over the years, while the premiums for term life increase. That extra premium paid in the early years of the permanent policy gets invested and grows, minus the amount your agent takes as a sales commission. The gain is tax-deferred if the policy is cashed in during your life. (If you die, the proceeds are usually tax-free to your beneficiary.)

The saying you always hear is, "Buy term and invest the difference." The fact is, it depends on how long you keep your policy. If you keep the permanent life policy long enough (and the market ever fully rebounds), that's the best deal. But "long enough" varies, depending on your age, health, insurance company, the types of policies chosen, interest and dividend rates, and more. The reality is that there is not a simple answer, because life insurance is not a simple product.

My personal take on it? A mixture is always a good way to go in order to have a pretty balanced coverage amount against premium payments.

Provided you have a budget, it's obviously better to put your money into something that could possibly give you returns at the end of the day, but sometimes, the coverage is more important than the potential growth of your money depending on whether there are people counting on you for any reason at all.

Insurance after all is meant to provide you a safeguard for any situation where there's an opportunity cost in any event of loss of a person's life or income or even ability to carry out daily activities.

In short:

1. Term provides high coverage at a low price but doesn't have any solid value at the end of the day.
2. Whole Life provides a form of savings and guard against inflation. It can be thought of as a vehicle to put money away for a rainy day.

Most importantly, consider carefully what your objective is, and whichever way you intend to go, remember again, that it's best to be covered a little, than not at all.

Be protected everyone!

Jessica