Crossroad to decide regarding ILP

[Trueno_84]

PM'ed you. Cheers

 

[doody_]

hahaha, u have btir, share how much is your term, how much u invest, how your investments are doing now.

Someone bought term 1.2/year cover 500k, so how much he got to invest to recover his 1.2/year by 55 or 99 years, assuming term is 99 years, hahaha

That doesn't even make sense. I'm not sure if you think before you post. So the alternative is don't buy insurance and save 1.2k/year for investing to pay for your medical expenses? I hope you don't do that cos I would like to know how much you can leave for your loved ones if you were to require "claiming" the policy after 10 or 20 years.

In case you are poor in finance, here is an online calculator. Knock yourself out.

http://www.moneychimp.com/calculator/compound_interest_calculator.htm

Current Principal $0, Annual Addition $1200, 30 years, Interest Rate 10%, FV = $217,132.11

 

[wts2013]

That doesn't even make sense. I'm not sure if you think before you post. So the alternative is don't buy insurance and save 1.2k/year for investing to pay for your medical expenses? I hope you don't do that cos I would like to know how much you can leave for your loved ones if you were to require "claiming" the policy after 10 or 20 years.

In case you are poor in finance, here is an online calculator. Knock yourself out.

http://www.moneychimp.com/calculator/compound_interest_calculator.htm

Current Principal $0, Annual Addition $1200, 30 years, Interest Rate 10%, FV = $217,132.11

Precisely, btir dun make sense, its been preached that people are supposed to buy term and invest the rest vs whole life, but people are buying more term cos its cheap, so my question how much do u "invest the rest" when u buy a term paying 1.2/year, how much is "the rest" when u compare to what u have to pay when u buy whole life? or are u just buying term without investing the rest? if so, 1.2 x number of years of your policy goes down the drain, hahaha, oops, based on your own calculations shld be 217132 down the drain, hahaha

it is greed and fear which make those buying and paying 1.2/year, can u afford to pay that amt plus invest the rest? If u are doing it, my question to the original person who posted, what are his positions now? hahaha

 

[w1rbelw1nd]

Precisely, btir dun make sense, its been preached that people are supposed to buy term and invest the rest vs whole life, but people are buying more term cos its cheap, so my question how much do u "invest the rest" when u buy a term paying 1.2/year, how much is "the rest" when u compare to what u have to pay when u buy whole life? or are u just buying term without investing the rest? if so, 1.2 x number of years of your policy goes down the drain, hahaha, oops, based on your own calculations shld be 217132 down the drain, hahaha

it is greed and fear which make those buying and paying 1.2/year, can u afford to pay that amt plus invest the rest? If u are doing it, my question to the original person who posted, what are his positions now? hahaha

Of course, if a person increased his coverage unnecessarily just because term is cheap, then the person is greedy. Thats not how insurance is purchased, as you should only purchase the coverage that you/your family needs.

We are assuming that coverage remains the same, and the balance of money saved from using term is used for investments in ETF. A simple assumption made so that we can compare apple to apple.

 

[winorlose]

Regarding ILP, my parents bought a prulink plan for me in 1990 covering 100k, paying $1.9k per year. Thats abt 25years ago.. It is safely above water now since the funds are mainly in sg bluechip fund.

Since the cost to cover 100k is relatively cheap (If i buy a 100k cover non-ilp plan now, will cost above $2.5k for my age) and its already above water.. I will continue to carry on with it.

It will work if put for long term like 20-25years and depends on the funds that u allocate.

 

[wts2013]

Regarding ILP, my parents bought a prulink plan for me in 1990 covering 100k, paying $1.9k per year. Thats abt 25years ago.. It is safely above water now since the funds are mainly in sg bluechip fund.

Since the cost to cover 100k is relatively cheap (If i buy a 100k cover non-ilp plan now, will cost above $2.5k for my age) and its already above water.. I will continue to carry on with it.

It will work if put for long term like 20-25years and depends on the funds that u allocate.

yes, long term, investments usually have to be held long term to see results, its the same with btir, they invest in sti etf/bonds, markets go up and down, can lose 50% or make that much in a year, average over long term hopefully see a gain.

looks like for ts, PruLink Singapore Growth Fund, if it is singapore unit trust, it shld also perform similar if not better than st, as it need to pay sales charge out front, it will lose alot initially.

my relative bought ILP single premium, I think more than 10 years, already making alot, so alot depends on when u buy and the underlying assets, and single premium vs regular premium

 

[hwmook]

Precisely, btir dun make sense, its been preached that people are supposed to buy term and invest the rest vs whole life, but people are buying more term cos its cheap, so my question how much do u "invest the rest" when u buy a term paying 1.2/year, how much is "the rest" when u compare to what u have to pay when u buy whole life? or are u just buying term without investing the rest? if so, 1.2 x number of years of your policy goes down the drain, hahaha, oops, based on your own calculations shld be 217132 down the drain, hahaha

it is greed and fear which make those buying and paying 1.2/year, can u afford to pay that amt plus invest the rest? If u are doing it, my question to the original person who posted, what are his positions now? hahaha

You are really stubborn when its already been proved beyond a reasonable doubt that BTIR give you better returns, no need to talk BS here if you can't provide anything to prove otherwise. $1.2k per year for term insurance can cover you for millions if you are young like 25 years old. Tell me how much you need to pay for ILP to get millions of coverage. Don't waste people time if you got NO figures to show.

 

[wts2013]

You are really stubborn when its already been proved beyond a reasonable doubt that BTIR give you better returns, no need to talk BS here if you can't provide anything to prove otherwise. $1.2k per year for term insurance can cover you for millions if you are young like 25 years old. Tell me how much you need to pay for ILP to get millions of coverage. Don't waste people time if you got NO figures to show.

hahaha, moi not saying ilp is good, dun just deduce leh, moi quote real example 1.2k cover 500k term from another post, u go read lor, then u tell me how much need to be invested in this example for the btir, wah your case luggi worst, 1.2k cover for millions, how much u need to pay whole life to cover millions, then u save that amt to invest, u earn so much ah, hahaha

pls read this post and all the discussions that follow, real life example of what moi is talking about, ie whole life policy vs term http://forums.hardwarezone.com.sg/95410354-post53.html, all just posted a few hours ago, hahaha

then read this http://forums.hardwarezone.com.sg/95410728-post25.html, are u greedy?

moi also dun believe in ilp, but got money can consider single premium, cos regular premiums u will lose just based on the out front sales charge of 5%, u need to earn more than 5% to recover that cost first, hahaha, dream on, use your common sense lah, hahaha

 

[hwmook]

PruLink Protection
monthly premium 383.04
Death 200k
Terminal Illness 270k
Crisis Waiver III 350.05
Crisis Cover Provider III 270k
TPD 270k
Early Stage Crisis Waiver 371.41

PruLink Singapore Growth Fund
current estimated surrender value 6k

current policy year 5
total premiums paid to date >18k

is this sufficient details?

You do need to understand that buying insurance have huge sunken costs so even if you cancel it now, you would not recover any of those. As you can see for yourself that you have already lost $12k as a result of your foolish decision 5 years ago. Buying a similar term insurance at that young age would probably cost you less than $2k for 5 years so a good $10k of that $18k has already gone to the agent and insurance company. If you cancel now, what you can save is just future costs which is a small amount relative to what you already lost. Since you are still young and thus is likely to benefit from BTIR so I would recommend you to go ahead and terminate the ILP but do plan ahead to determine the term insurance you need as replacement and what is your investment plan going forward.

 

[Mecisteus]

hahaha, moi not saying ilp is good, dun just deduce leh, moi quote real example 1.2k cover 500k term from another post, u go read lor, then u tell me how much need to be invested in this example for the btir, wah your case luggi worst, 1.2k cover for millions, how much u need to pay whole life to cover millions, then u save that amt to invest, u earn so much ah, hahaha

pls read this post and all the discussions that follow, real life example of what moi is talking about, ie whole life policy vs term http://forums.hardwarezone.com.sg/95410354-post53.html, all just posted a few hours ago, hahaha

then read this http://forums.hardwarezone.com.sg/95410728-post25.html, are u greedy?

moi also dun believe in ilp, but got money can consider single premium, cos regular premiums u will lose just based on the out front sales charge of 5%, u need to earn more than 5% to recover that cost first, hahaha, dream on, use your common sense lah, hahaha

Im not sure why you are so ignorant, stubborn and defiant.

ILP = WL. The former is a transparent while the latter is a non-transparent structure.

WL = A + B + C = Vanilla Insurance + Investment/Savings Portion + High Commission/Expenses

If you BTITR, you just need to do A + B which is equivalent to WL - High Commission/Expenses. This way, you don't need to fund your Financial Advisor next property or luxury car with 2 years worth of annual premiums.

If you buy a WL, the Investment/Savings Portion is what constitutes to your future cashbacks/withdrawals/surrender values.

PS: Vanilla Insurance is an expense like you pay for utility, telecom bills, etc. If you like, service providers can give you cashbacks in the future also. But at what expense? You have to pay a higher monthly bills of course! If not how to fund for your future cashbacks.

 

[Mecisteus]

We are in the Money Mind forum. So we discuss savvy ways to maximize returns or profits.

In order to maximize returns or profits, the general rules are to reduce expenses and increase revenues/salaries. Thus, policies like WL or ILP are not the most cost effective ways to go. However, they still can meet the goals too.

 

[wts2013]

Im not sure why you are so ignorant, stubborn and defiant.

ILP = WL. The former is a transparent while the latter is a non-transparent structure.

WL = A + B + C = Vanilla Insurance + Investment/Savings Portion + High Commission/Expenses

If you BTITR, you just need to do A + B which is equivalent to WL - High Commission/Expenses. This way, you don't need to fund your Financial Advisor next property or luxury car with 2 years worth of annual premiums.

If you buy a WL, the Investment/Savings Portion is what constitutes to your future cashbacks/withdrawals/surrender values.

PS: Vanilla Insurance is an expense like you pay for utility, telecom bills, etc. If you like, service providers can give you cashbacks in the future also. But at what expense? You have to pay a higher monthly bills of course! If not how to fund for your future cashbacks.

hahaha, have u read this http://forums.hardwarezone.com.sg/95410354-post53.html

moi dun just believe theories, I want to see facts, theories are made by insurance agents/companies, care to share what u have in btir, moi already shared a real life example of whole life insurance plan and Perisher shared the equivalent of btir, and what was the result, just 14k more over 30 years, and that is just the theory of btir, hahaha, to each his own

we must agree to disagree, no need to force your theories on others, if u like to throw your money into the drain go ahead, moi dun want, hahaha

 

[Mecisteus]

we must agree to disagree, no need to force your theories on others, if u like to throw your money into the drain go ahead, moi dun want, hahaha

we cant stop you from funding your financial advisor lifestyle too. they need more people like you if not many advisors will be out of jobs. if not insurance companies cannot make billions of dollars too.

 

[wts2013]

we cant stop you from funding your financial advisor lifestyle too. they need more people like you if not many advisors will be out of jobs. if not insurance companies cannot make billions of dollars too.

hahaha, the joke is they like u people more, all those who buy term, cos u are all paying their salaries, moi still can get my money back, u read lor, my relative paid 26k plus premiums, take back 60k plus surrender value, what u paid goes down the drain, go to pay insurance companies/agents, goes to pay me my dividend, hahaha I'm a shareholder, hahaha

 

[w1rbelw1nd]

Well let's keep things civil, hahaha. I acknowledge that one can view term as "throwing money down the drain", its really just a matter of perspective.

I am just happy that I am minimising costs and maximising returns with my btir policy, as I have shown mathematically with my spreadsheet, with a fair comparison between WL and btir.

 

[Mecisteus]

Well let's keep things civil, hahaha. I acknowledge that one can view term as "throwing money down the drain", its really just a matter of perspective.

i am not sure why would you view it as throwing money down the drain.

you are paying for the cost of your pure insurance because you need it. if you don't want the insurance, you don't take up the plan.

the same like you sign up for a mobile plan. you pay for their service.

it is not throwing money down the drain if you are paying a reasonable price. it is not throwing money down the drain just because you don't get back any cash.

however, if you are paying too much for an insurance or service that you don't require, then that is throwing money down the drain.

 

[w1rbelw1nd]

i am not sure why would you view it as throwing money down the drain.

you are paying for the cost of your pure insurance because you need it. if you don't want the insurance, you don't take up the plan.

the same like you sign up for a mobile plan. you pay for their service.

it is not throwing money down the drain if you are paying a reasonable price. it is not throwing money down the drain just because you don't get back any cash.

however, if you are paying too much for an insurance or service that you don't require, then that is throwing money down the drain.

I agree with you, but apparently someone here is wired to think differently... So to each his own la, I am sure the audience can discern...

 

[Perisher]

hahaha, have u read this http://forums.hardwarezone.com.sg/95410354-post53.html

moi dun just believe theories, I want to see facts, theories are made by insurance agents/companies, care to share what u have in btir, moi already shared a real life example of whole life insurance plan and Perisher shared the equivalent of btir, and what was the result, just 14k more over 30 years, and that is just the theory of btir, hahaha, to each his own

we must agree to disagree, no need to force your theories on others, if u like to throw your money into the drain go ahead, moi dun want, hahaha

Fyi, that 14k difference is average market return while the wl you pick is more an exception than the average. And that is discounting the fact I use a term policy covering double of your wl policy so the actual difference is even more.
Nobody's gonna stop you throwing your $$ down the drain due to your theories.

 

[Mecisteus]

hahaha, the joke is they like u people more, all those who buy term, cos u are all paying their salaries, moi still can get my money back, u read lor, my relative paid 26k plus premiums, take back 60k plus surrender value, what u paid goes down the drain, go to pay insurance companies/agents, goes to pay me my dividend, hahaha I'm a shareholder, hahaha

wow, you think it is a free lunch?

hahaha whatever they can do, i can do it myself too.

hahaha i am a shareholder too.

hahaha we are all shareholders of some companies too.

 

[doody_]

That is a good policy but no point discussing about it if it's no longer available today. Just like saying last time DBS stock was $9 only when now it's $20. Now can buy? 888/year, return 60k after 30 years? I would like to buy one as a form of alternative investment, since it's 4.88% guaranteed over 30 years which is better than CPF.