Income or Lump Sum? The Life Plan Conundrum
Effective wealth management is about many things but it can perhaps be boiled down to two essential elements: protection and (or) growth.
Whether you prefer to emphasise protection or growth will depend largely on your circumstances, goals, and attitude to risk. One part of this is determining whether you want your investments to create the security of income or the flexibility and reinvestment potential of a lump sum.
Investors are typically split around 50-50 on this question, which is why it is no surprise to learn of a recent Aegon survey of 1,300 investors which found that 58% preferred insurance plans to pay monthly income rather than a lump sum at maturity.