It is not a matter of selecting between the 2 options. It is a question of setting your goals and funding them:
1. Britak Life Policy: Purpose is to leave your loved ones with some cash (Ksh. 1.3M) should you die. The end result is that they are able to fend for themselves from the proceeds of the policy. THIS IS NOT AN INVESTMENT (in the traditional sense). It is like having an emergency fund to tap onto should there be an emergency.
2. Investment Club: This is an investment where you (hopefully) reap some reward if your plans go according to your plan. This should be funded with excess cash (that is after you have funded your retirement,housing (rent/mortgage),insurance payments,other obligations,etc ).
As you can see,Number 1 and 2 above are very different. You need to decide which goal you are trying to achieve.
- Fair_Car_Dealer
PS: When buying land,consider an option of financing through the commercial banks. They will lend anywhere from 80% to 100% of the cost of the land at 15% per annum (contact Equity,Housing Finance,Savings & Loan,Consolidated Bank,etc for more details). This means your club can afford to pay the monthly payment (20 people x 5k per person=Ksh. 100,000) for 5 years to buy a plot worth Ksh. 4.2M. At the end you can all sell for a handsome profit or proceed to build as planned. The dynamics of whether your club members will actually faithfully pay 5k per person per month for 5 years is the subject of a whole different discussion.
~~~ Assisting Car Buyers Identify,Locate and Import the Car of their Choice from Japan,England or Singapore,at a Fair and Reasonable Price ~~~