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Old 16-09-2015, 11:42 AM   #16
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Hi wts2013
I have 3 ILPs - 2 monthly premium paying ones and 1 lump sum payment one. i bought them when i started working also and now its has been more than 10 yrs but still 4-5k loss for monthly paid ones and 3k loss for the other one if I surrender now. really regret on ILP purchases ...
wanna ask for advice if there is any good CI insurance.. when I asked the agent, they all said I need to purchase life insurance and then CI will be rider. so if that is true, in order to have good coverage for CI, I need to buy expensive life insurance again ( I already have 2 Life insurance but CI coverage is little).. If you could share with me, I will really appreciate.
There are standalone CI plans available in the market. You have to ask yourself if that's what you prefer though, since one would not be able to claim anything from the plan if a person pass away without suffering from any CIs. Cost wise, it may or may not be cheaper, depending on your profile and the coverage term.

To wts2013, vivocare covers death/tpd/early CI. If you are talking about late stage CI, Vivolife should be the correct plan with death and tpd coverage as well.
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Old 16-09-2015, 11:47 AM   #17
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moi have shared in other threads, now share again lor.

Insurance is piah chiak one, moi never buy insurance which moi cannot get money back if moi still alive.

If moi still alive and well, get money back is an option for retirement. Moi have death insurance which will mature 60 plus so can get money back if no dependents, then use for retirement. Got multiple CI policies bought more as income increases, can terminate and get money back if healthy when old, use for retirement, maybe keep one just in case. Got ntuc income enhanced shield with rider for 100% cover, so no need worry no money to pay.

All with ntuc income, all policies with sum assured which auto increases over the years, so no need to buy more, eg 50k when bought can increase to 100k many years later.

Dun look at the returns these insurance can give u, cos primary purpose is insurance, if when u retire and want to cash out and found it pays average of 4-5% interest, its a bonus lor, hahaha

If u buy term, all your money down the drain if u still alive hor, hahaha
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Old 16-09-2015, 12:00 PM   #18
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If u buy term, all your money down the drain if u still alive hor, hahaha
That's because you didn't invest the rest. Don't mislead with a sweeping statement. Buying term is always paired with invest the rest.
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Old 16-09-2015, 12:37 PM   #19
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That's because you didn't invest the rest. Don't mislead with a sweeping statement. Buying term is always paired with invest the rest.
hahaha, it is no better than ILP, 100% paid is lost, dun try to console chiu, hahah
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Old 16-09-2015, 12:46 PM   #20
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That's because you didn't invest the rest. Don't mislead with a sweeping statement. Buying term is always paired with invest the rest.
Yep, this is right. If you buy term instead of whole-life, you pay 90%-95% less for the same amount of coverage. That's money that you can invest in stocks and bonds, and it's money that you'll get back when you retire (or earlier, if you need it).

The big trick of whole-life insurance is that they do exactly the same thing, they just don't tell you about it. They take your money, invest it (mostly in bonds, not in stocks, so you get less growth), and then give it back to you when you retire or when you claim on the policy, minus a truckload of fees.

Whole-life insurance is worse than just investing it yourself, but they can't tell you that. There's a whole sales industry dedicated to persuading you that you're dumb, that you can't be trusted with your own money, that you're going to get hit by a bus on the way to work tomorrow morning and that you're a terrible person who won't leave any money for your children. It's all a sales trick, designed to sell you a higher-margin product (whole life and ILPs) instead of a better, cheaper product (term life).

----------

I know I've said this before, but whole-life insurance (and investment-linked insurance) was invented as a tax dodge. People in the UK (I think) realised that if you left money to your kids in the form of an "insurance payment", instead of as an inheritance, it wouldn't get slugged by death duties. Singapore has no death duties - all it has is the couple-thousand-dollar costs of executing the will.

And with no death duties, what's the point of whole-life insurance?

Exactly.
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Old 16-09-2015, 01:04 PM   #21
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hahaha, if chiu think chiu are getting value for money by paying less with term, and u lose less money (term insurance premiums) to the insurer, and can make that money back by investing it yourself, good for u.

if chiu dun like the idea of insurer losing your money from chiu when u buy ILP, and wld lose more than compared to term insurance, hahaha then chiu feel happier losing it yourself thru term and hope to make it back from investing yourself, good for u

moi only want my money back, no want cheap n lose 100% (term insurance) since insurance is pian chiak one leh, if moi got money still can invest and earn even more money leh. Insurer give me back my money, they work hard for me with guaranteed return, chiu have to work hard to earn from chiu investment leh, hahaha

to each his own, some more u no buy insurance one right cos u dun believe in insurance in the first place, only got hospitalisation insurance hor, then hahaha

no ILP ok, hahaha

Last edited by wts2013; 16-09-2015 at 01:06 PM..
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Old 16-09-2015, 03:03 PM   #22
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So I guess the conclusion is, I should just thrash my ILP into the rubbish bin?
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Old 16-09-2015, 03:52 PM   #23
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hahaha, it is no better than ILP, 100% paid is lost, dun try to console chiu, hahah
The part of my insurance payment that goes towards the agent's BMW and the insurer's profits is also money that is unnecessarily paid and lost.

I have no problem with paying money to make money, like the IBKR $10 monthly activity fee. But the problem is that the ILPs charges are unnecessary.

I think you're probably trolling the ILP haters and not really giving a balanced view or the pros and cons of ILP.
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Old 17-09-2015, 01:11 PM   #24
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Decided to cancel my ILP
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Old 17-09-2015, 03:47 PM   #25
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read this advice from expert to newbie

http://forums.hardwarezone.com.sg/96634234-post781.html
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Old 17-09-2015, 03:52 PM   #26
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Now I even feel like cancelling away my savings plan as well
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Old 17-09-2015, 11:40 PM   #27
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Now I even feel like cancelling away my savings plan as well
Sharing my journey here - I had an ILP previously, but terminated a few months into the plan after I got some form of enlightenment by doing up my homework; timely in some sense but perhaps I do wish I didn't enter ILP at all.

So I had WL, Endowment and PA plans which I thought was "the right thing to do". But once again, as my curiosity arose and financial literacy increase, I cancelled my WL and went to buy term instead.

Disclaimer: there's no one size fits all decision. You have to weigh your own pros and cons, and then move forward with a decision that is able to convince you and proclaim the justification without any hesitation, if you were to ask your future self why you decided to stick to/cancel any of your existing plans.

My reason? My new term plan gives 10x more on death and TPD coverage, and 3x more for CI, as compared to my WL, at a monthly premium that's 15% lower (that's my justification for cancelling WL and taking up term). So the decision was pretty straight forward. I have already calculated and ascertained prior that I am comfortable with that final amount of coverage, given my circumstances, but of course I was also made known that I am able to have a lower coverage that comes with lower premiums as well.

As for my Endowment, I decided to keep it running despite having second thoughts that I felt that I was "wasting my money". Upon maturity, I am able to cash out this amount which will assist me in my finances at that future stage of my life. It also concurrently act as a form of forced savings from my disposable income (my justification). So I am good with that.

Granted I could have used these monthly premiums to invest in X instrument, that can yield a 4% p.a. return, but given my lack of knowledge in that field, I felt it was only wise to stick to this form of forced savings; pretty much like a scaled-down version of CPF and upscaled version of FD/SSB. Sorry I digress.
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Old 18-09-2015, 05:11 AM   #28
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Sharing a link I found which compares various wholelife, endowment policies
http://www.investmentmoats.com/budge...-to-5-returns/
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Old 18-09-2015, 08:05 AM   #29
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Later I will upload the figures for my ILP and my savings plan, maybe that will be easier for comprehension purposes.
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Old 18-09-2015, 08:35 AM   #30
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What do you guys think?

Savings


ILP




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