Getting an ILP PLAN from AIA

[trojanguy]

hi Guys,

Im have purchased my first ever insurance policy

its an AIA ILP. just like to see who else got this plan and how did you manage to invest in your mutual funds investment?

 

[reinphd]

hi Guys,

Im have purchased my first ever insurance policy

its an AIA ILP. just like to see who else got this plan and how did you manage to invest in your mutual funds investment?

please cancel it. search for all the ILP threads. hope you're still in the free-look window of 14 days.

Buy term insurance and invest the rest yourself

 

[NiteX2]

I have no idea what ILP you have bought, but unless you are getting the mother-child ILP cover, you will be better off getting insurance and investment separately

 

[Perisher]

like others have said, cancel your ilp immediately.

 

[limster]

hi Guys,

Im have purchased my first ever insurance policy

its an AIA ILP. just like to see who else got this plan and how did you manage to invest in your mutual funds investment?

Why do people post in HWZ AFTER buying the ILP?

Luckily got "free-look" window so can cancel.

 

[trojanguy]

please cancel it. search for all the ILP threads. hope you're still in the free-look window of 14 days.

Buy term insurance and invest the rest yourself

hi thanks for the direct response

is there a reason y?

what do you mean term insurance? i just sign yesterday.

 

[Perisher]

Term insurance is an insurance product that doesn't have any monetary value and is renewable in a shorter timeframe. It's biggest 2 advantage is it is way way cheaper and it covers way way more should anything happens to you.

It's the one product most bad agent will not mention at all. That's one big red flag that you should change your agent. The commission for term is too low for agent while ILP gives one of the highest commission to your agent and that's why they are pushing you this lousy policy.

If you want long term investment, people here can guide you to an almost idiot-proof way of earning reasonable returns that beat most if not all ILP returns since forever. Open a cdp account and a scb account, buy STI ETF consistently over years, get rewarded, simple.

Cancel it immediately. If you want a detailed break down of why it';s bad, just look for the policy's name and google hwz alongside it. Quite sure you will find your answer.

Once again, cancel this ILP policy asap.
Insurance and investment must not mix, ever.

 

[reinphd]

hi thanks for the direct response

is there a reason y?

what do you mean term insurance? i just sign yesterday.

Term insurance is an insurance product that doesn't have any monetary value and is renewable in a shorter timeframe. It's biggest 2 advantage is it's way way cheaper and it covers way way more should anything happens to you.

It's the one product most bad agent will not mention at all. That's one big red flag that you should change your agent. The commission for term is too low for agent while ILP gives one of the highest commission to your agent and that's why they are pushing you this lousy policy.

If you want long term investment, people here can guide you to an almost idiot-proof way of earning reasonable returns that beat most if not all ILP returns since forever. Open a cdp account and a scb account, buy STI ETF consistently over years, get rewarded, simple.

Cancel it immediately. If you want a detailed break down of why it';s bad, just look for the policy's name and google hwz alongside it. Quite sure you will find your answer.

Once again, cancel this ILP policy asap.
Insurance and investment must not mix, ever.

perisher explained in a solid way

In another thread I shared my calculation of the ILPs i cancelled from AIA after 3 years with a loss of 3.8k. It was a 2k/annum ILP

"FOR ILP (I factored in that the 4th - 6th year it will be 100% and 7th to 10th year it will be 102% and 11th year onwards will be 105%):
At age 65, I would have the results:
Insurance premium paid: $32,339 (factoring in the rate of CI,TPD and death multiply by per $1k coverage. I was covered for $100,000 for all)
Investment: $176,503 (every year subtract fund management fee of 1.5%, minus policy fee of $5/month and minus amount deducted for insurance and a 7% growth yearly. I have yet to take into consideration if any other fees are involved)

For quitting now and getting a term to cover the same and doing self investment and at age 65, I would have the results ($500/year for term, $1.5k self-invest in etf with 7% return):
Insurance premium paid: $18,500
Investment: $240,506 (factoring in the charges i use for SCB)
"

To summarize (At age 65):

ILP: Insurance charge = $32,339, investment portfolio = $176,503
Buy Term and invest the rest : Insurance charge = $18,500, Investment portfolio = $240,506

Go figure

 

[limster]

http://forums.hardwarezone.com.sg/m...-first-secure-ilp-your-opinion-5056855-2.html

Check out this thread.

* $1,200 a year premium After 10 years, you pay a total of $12,000. Surrender value is only $9,300 if the participating fund returns 4% p.a. (not guaranteed)

* Compare to $1,200 a year invested in stocks and bonds returning 4% p.a. After 10 years, the value is $14,407.33

* $9,300 vs $14,407.33 - $5,000 disappear where? Ask your agent when you next see him driving his new BMW.

* This $5,000 can be used to buy term insurance and have lots leftover.

 

[trojanguy]

Wow. Sigh i made a wrong move

 

[parchiao]

http://forums.hardwarezone.com.sg/m...-first-secure-ilp-your-opinion-5056855-2.html

Check out this thread.

* $1,200 a year premium After 10 years, you pay a total of $12,000. Surrender value is only $9,300 if the participating fund returns 4% p.a. (not guaranteed)

* Compare to $1,200 a year invested in stocks and bonds returning 4% p.a. After 10 years, the value is $14,407.33

* $9,300 vs $14,407.33 - $5,000 disappear where? Ask your agent when you next see him driving his new BMW.

* This $5,000 can be used to buy term insurance and have lots leftover.

Just to be sure everyone knows I am not an insurance agent when I ask this question.

Investing oneself does not necessarily mean that can get the 4% pa returns too. What is for sure is that assuming that can get 4% pa, will the difference add up to 10 years worth of term insurance premiums?

Another thing to consider, how long is one able to renew the term insurance to get coverage when old? What are the disadvantages of of term insurance vs other types of policies e.g life insurance policy

And another thing, the portion deducted from ILP at advanced age, if I am not wrong and someone should correct me if so, tends to be more expensive.

I don't think ILPs are good, but can be handy if someone is familiar with how cycles work in the financial markets.

 

[Perisher]

Just to be sure everyone knows I am not an insurance agent when I ask this question.

Investing oneself does not necessarily mean that can get the 4% pa returns too. What is for sure is that assuming that can get 4% pa, will the difference add up to 10 years worth of term insurance premiums?

Another thing to consider, how long is one able to renew the term insurance to get coverage when old? What are the disadvantages of of term insurance vs other types of policies e.g life insurance policy

And another thing, the portion deducted from ILP at advanced age, if I am not wrong and someone should correct me if so, tends to be more expensive.

I don't think ILPs are good, but can be handy if someone is familiar with how cycles work in the financial markets.

You may claim you are not but you sure sound like one. To put it simply, no one can guarantee any returns but the fees and charges by ilp policy is guaranteed. What do u pay for buying $339 of sti etf, less than a dollar. What do u pay ilp to invest in funds which cannot beat market returns over the long term?
BTIR on the other hand has handily beaten most if not all ilp policy for decades in terms of returns. Those 2 reasons should be sufficient to made one wonder why one would get ilp. It protects way lesser than term insurance, returns way less than index investment and can't do anything right in combination.

The old age problem is solved by having a sum of $$ Available after investing till 65. One would have accumulated enough wealth to cover more than ilp at the end of 65. Therefore no more need to buy a term policy. Think about it.

 

[seller2013]

hi Guys,

Im have purchased my first ever insurance policy

its an AIA ILP. just like to see who else got this plan and how did you manage to invest in your mutual funds investment?

don't listen to the people here about cancelling. Just stick with the plan. Aviva SAF plan covers till 65 years old only, if i'm not wrong.

Over the long term, investment make $. ILP just gives you investment and insurance together.

Once you're way pass retirement age, the $ in the ILP can be used as a "legacy" for your kids.

To me, term is the worst insurance one can get; it doesn't give you any return.

I used to like term insurance and invested the rest of my $ myself and I hated ILP. I woke up when I cancelled my savings plan and my cousin cancelled her ILP. She made a gain while I made a lost even though we bought our plans at the same time.

I have AIA plans as well...ILP and a legacy plan, some UL thingy.

 

[seller2013]

Term insurance is an insurance product that doesn't have any monetary value and is renewable in a shorter timeframe. It's biggest 2 advantage is it is way way cheaper and it covers way way more should anything happens to you.

It's the one product most bad agent will not mention at all. That's one big red flag that you should change your agent. The commission for term is too low for agent while ILP gives one of the highest commission to your agent and that's why they are pushing you this lousy policy.

If you want long term investment, people here can guide you to an almost idiot-proof way of earning reasonable returns that beat most if not all ILP returns since forever. Open a cdp account and a scb account, buy STI ETF consistently over years, get rewarded, simple.

Cancel it immediately. If you want a detailed break down of why it';s bad, just look for the policy's name and google hwz alongside it. Quite sure you will find your answer.

Once again, cancel this ILP policy asap.
Insurance and investment must not mix, ever.

Term insurance has no $ inside. Who would wanna really pay for insurance and not get back any $. When you invest, there is a chance for earning. When u buy ILP, there is a chance of earning and getting back the $ you put in.

 

[NiteX2]

Term insurance has no $ inside. Who would wanna really pay for insurance and not get back any $. When you invest, there is a chance for earning. When u buy ILP, there is a chance of earning and getting back the $ you put in.

You do realise that ILP is essentially a term insurance + investments into unit trusts?

If you want something with cash value, there's always wholelife insurance that you can purchase. I don't see a point in getting ILP since you are paying extra for a packaged product. You can just get term and dump the remaining amount into a unit trust if you like, it's essentially the same thing

 

[seller2013]

perisher explained in a solid way

In another thread I shared my calculation of the ILPs i cancelled from AIA after 3 years with a loss of 3.8k. It was a 2k/annum ILP

"FOR ILP (I factored in that the 4th - 6th year it will be 100% and 7th to 10th year it will be 102% and 11th year onwards will be 105%):
At age 65, I would have the results:
Insurance premium paid: $32,339 (factoring in the rate of CI,TPD and death multiply by per $1k coverage. I was covered for $100,000 for all)
Investment: $176,503 (every year subtract fund management fee of 1.5%, minus policy fee of $5/month and minus amount deducted for insurance and a 7% growth yearly. I have yet to take into consideration if any other fees are involved)

For quitting now and getting a term to cover the same and doing self investment and at age 65, I would have the results ($500/year for term, $1.5k self-invest in etf with 7% return):
Insurance premium paid: $18,500
Investment: $240,506 (factoring in the charges i use for SCB)
"

To summarize (At age 65):

ILP: Insurance charge = $32,339, investment portfolio = $176,503
Buy Term and invest the rest : Insurance charge = $18,500, Investment portfolio = $240,506

Go figure

What can $240,506 get one when one is 65 years old? probably a SLK benz and one would be too old to drive that car during that age? 240 506 is not even enough for retirement!

insurance is supposed to replace one's income if one were to pass away during the working years of their life. Upon death, insurance is supposed to add into the assets that can be distributed. Given the lower amount paid monthly, I don't think term insurance provides the ability to add into one's assets when one is in their 80s and 90s? Most term insurance expires at 60+ years of age.

 

[seller2013]

You do realise that ILP is essentially a term insurance + investments into unit trusts?

If you want something with cash value, there's always wholelife insurance that you can purchase. I don't see a point in getting ILP since you are paying extra for a packaged product. You can just get term and dump the remaining amount into a unit trust if you like, it's essentially the same thing

I like ILP because of its flexibility; you can vary quite a no. of stuffs.

Comparing reinphd's explanation:

"For quitting now and getting a term to cover the same and doing self investment and at age 65, I would have the results ($500/year for term, $1.5k self-invest in etf with 7% return):
Insurance premium paid: $18,500
Investment: $240,506 (factoring in the charges i use for SCB)
"

To summarize (At age 65):

ILP: Insurance charge = $32,339, investment portfolio = $176,503
Buy Term and invest the rest : Insurance charge = $18,500, Investment portfolio = $240,506"

Assuming one were to pass away at age 70 years old, investment portfolio probably contributes less than 300k to one's assets. That ILP would have contributed much more to one's assets that can be distributed to one's kids.

During times where business are bad, the death payout from the ILP would actually even out or lessen the lost of profits from a business and the death payout isn't taxable at all.

Think long-term...i.e. now till death, not short term like now till retirement.

 

[havetheveryfun]

What can $240,506 get one when one is 65 years old? probably a SLK benz and one would be too old to drive that car during that age? 240 506 is not even enough for retirement!

insurance is supposed to replace one's income if one were to pass away during the working years of their life. Upon death, insurance is supposed to add into the assets that can be distributed. Given the lower amount paid monthly, I don't think term insurance provides the ability to add into one's assets when one is in their 80s and 90s? Most term insurance expires at 60+ years of age.

paying more doesn't mean u get better insurance

if 240,506 is not even enough for retirement, then 176,503 for sure isn't enough too. But I would rather be 50k + richer, wouldn't you ?

And if you want protection and insurance even into the 80s and 90s, then buy life insurance like what NiteX2 has said. Not ILPs!!!!

 

[havetheveryfun]

Investing oneself does not necessarily mean that can get the 4% pa returns too. What is for sure is that assuming that can get 4% pa, will the difference add up to 10 years worth of term insurance premiums?

Another thing to consider, how long is one able to renew the term insurance to get coverage when old? What are the disadvantages of of term insurance vs other types of policies e.g life insurance policy

Investing oneself does not necessarily mean that can get the 4% pa returns. But nowhere does the ILP says that the 4% is guaranteed, I may not get 4% even if I purchased the ILP. so where is the difference?

think maybe someone should compare life insurance + investing on own to ILPs, that would probably let them see the light better, since they like to focus on all the disadvantages of term such as no cash value, no insurance even in old age, etc..

 

[Perisher]

Term insurance has no $ inside. Who would wanna really pay for insurance and not get back any $. When you invest, there is a chance for earning. When u buy ILP, there is a chance of earning and getting back the $ you put in.

When you invest, there is a chance for earning and getting back the $ you put in too. Dunno why you got confuse there but it's just a few rubbish sentence there. If you think the investment won't cover your initial capital(including the amount for term) then you are wrong.

As for the term insurance has no $ inside, that's why you have a investment which will have $$, way way more $$ inside than ILP.

Btw, if you want capital guaranteed plus 4% return, maybe can turn to bonds which is already paying 3.65% in the most recent one or OCBC 360 account or a combination of the above mixed with DCA STI ETF. Add a term plan and that's it. Confirm plus chop earn more than 90% of the ILP out there. If you want evidence, go look at STI index since the beginning until now. If you can't trust decades, try S&P 500 or DJIA, half a century and more of earnings averaging 8-10%+ per year since it started. No joke.

ILP are not even near that level of returns.

You must be an insurance agent.