Anyone sign prulink protection plus before? Is it good for long term? How much u all pay per month?
Anyone sign prulink protection plus before? Is it good for long term? How much u all pay per month?
disadvantage of it?
lots of hidden costs.
monthly policy fees, 5% spread commission within the policy that takes all ur premium and convert into units, THEN deducting those units as costs for all costs, hence making sure they eat 5% of all ur premium first.
life insurance costs within is not cheap at all (check out the older ages).
most extra benefits, such as unconditional insurance at milestones are useless if u plan out your life way in advance.
and front-loading so have fun paying the policy in the first few years coz 90% of it is going to the salesperson and his manager, director and their overseas trips.
IMO, 5% bid offer spread is nothing unusual for any investment in fund houses isnt it?
But in my humble opinion, the product do serve a need for a targeted group of people. It has its perks which no other products can fill.
Yes it is. A 5% bid-offer spread on anything - especially unit trusts - is very very unusual.
Who are these people, exactly?
ILPs have their uses in the UK and America as a tax dodge for high income earners, but Singapore doesn't have any of the taxes (dividend tax, CGT, estate tax) that these products aim to dodge. And without the tax benefits, an ILP is just an extortionately expensive way to buy unit trusts.
These people would be the youth, age 0 to 30. Because the cost of insurance you paying is MUCH lesser than a typical term policy. I would reckon that would easily outweigh the couple of charges on the policy. The savings there will then be invested and continue to grow.
One example for insuring 100k death and another 100k 3rd stage critical illness,
Aged 10, $54 for 100k death and $41 for 100k ci = $95
Aged 30, $77 for 100k death and $85 for 100k ci = $162
Aged 40, $145 for 100k death and $245 for 100k ci = $390
Aged 50, $465 for 100k death and $733 for 100k ci = $1198
As you can see, cost of insuring in the early stages in life is really very cheap. To my understanding, no other term policies out there can match the cost of insuring below 30 yrs old. Once hit aged 40, maybe. So, what I'm really trying to say is that this policy does provide cheap insurance when bought young. And this is the key advantage of this product. The amount of savings can easily outweigh the additional few % of bid offer spread depending on whichever funds you buy from.
Paiseh, me ish confuse by your post. Me ish got a few qn.
From my understanding arent any type of insurance, (and by using this word, i mean insuring from unexpected situation ie protection) always cheaper when one starts young? It's not limited to investment link insurance only right? No?
You can easily refer to one of the cheapest group term insurance available in Singapore. Safra group term.Second I guess the cost you provided is for the prulink. If you dont mind could you also provide the cost of your so call typical term policy to support your claim of prulink is cheaper than them?
Last but not least say if i buy prulink from 20-40 then term from 40-70, will it be cheaper than buying term from 25-70? (say if one grads from poly at 19.)