GREAT Wealth Advantage

[harky]

Is this worth to buy? Lol..

 

[BBCWatcher]

Is this worth to buy? Lol..

GREAT Wealth Advantage 3 is an investment-linked policy (ILP). Here are its few advantages:

• Upon death or total and permanent disability (TPD) the insurer guarantees that the ILP will be worth at least 105% of premiums paid. This isn’t real insurance, but it’s a minor plus.
• There’s a small bit of convenience. The insurer can deduct the premium automatically from your bank account and buy the fund(s). However, this convenience is not unique. A Regular Savings Plan (RSP) will also do this.
• The consequences of stopping premium payments or surrendering your ILP are often so awful that you’re effectively deterred from doing so. Wealth accumulation works best when you’re dogged, diligent, and don’t start spending excessively as soon as you start getting wealthier. Some people will do better when they have this “guardrail.”
• If your niece (or other family member) works for Great Eastern, OCBC, or a distributor then she/he might receive a commission if you buy this. Of course there’s nothing stopping you from simply handing money to your family member, without middlemen taking cuts.

Now the primary disadvantages:

• The ILP’s sales charges and fees are ridiculously high.
• The ILP’s funds have high management fees.
• The fund selection is limited. (Although this isn’t necessarily disqualifying if the ILP offers the two or three fund types that practically everyone should pick.)
• The funds may not be tax optimized.
• Relatedly, the ILP itself could be tax toxic if you merely move to another country or otherwise become subject to some other country’s tax system. And because of the typically terrible consequences of trying to exit you’re looking at a very expensive lesson.
• The ILP is not particularly liquid given the expensive consequences of early exit.

 

[harky]

GREAT Wealth Advantage 3 is an investment-linked policy (ILP). Here are its few advantages:

• Upon death or total and permanent disability (TPD) the insurer guarantees that the ILP will be worth at least 105% of premiums paid. This isn’t real insurance, but it’s a minor plus.
• There’s a small bit of convenience. The insurer can deduct the premium automatically from your bank account and buy the fund(s). However, this convenience is not unique. A Regular Savings Plan (RSP) will also do this.
• The consequences of stopping premium payments or surrendering your ILP are often so awful that you’re effectively deterred from doing so. Wealth accumulation works best when you’re dogged, diligent, and don’t start spending excessively as soon as you start getting wealthier. Some people will do better when they have this “guardrail.”
• If your niece (or other family member) works for Great Eastern, OCBC, or a distributor then she/he might receive a commission if you buy this. Of course there’s nothing stopping you from simply handing money to your family member, without middlemen taking cuts.

Now the primary disadvantages:

• The ILP’s sales charges and fees are ridiculously high.
• The ILP’s funds have high management fees.
• The fund selection is limited. (Although this isn’t necessarily disqualifying if the ILP offers the two or three fund types that practically everyone should pick.)
• The funds may not be tax optimized.
• Relatedly, the ILP itself could be tax toxic if you merely move to another country or otherwise become subject to some other country’s tax system. And because of the typically terrible consequences of trying to exit you’re looking at a very expensive lesson.
• The ILP is not particularly liquid given the expensive consequences of early exit.

just want to put some $$ aside n grow with little protection

 

[boredboiboi]

I am a representative of GE and this policy is very versatile that addresses different financial goals such as retirement, kids education fund or buying a property etc.

It allows dollar cost averaging as you are able to set aside your savings consistently to grow at a higher return.
The policy also allows you to customise on the time horizon (5 years, 10 years, 15 years) for wealth accumulation.

It is good because 100% of the premium goes into investment which makes the growth of your portfolio faster.

Can PM me to know more

No different from other ilp. And correct me if i am wrong, its still sub funds while most insurers are ald doing direct main funds.
Anyway for u to take note.
Forum is for open discussion.
no pm request is actually allowed

 

[mynickname]

No different from other ilp. And correct me if i am wrong, its still sub funds while most insurers are ald doing direct main funds.
Anyway for u to take note.
Forum is for open discussion.
no pm request is actually allowed

What's this concept of sub funds and direct main funds?

 

[andyhtc]

Is this worth to buy? Lol..

Such plans need a long run way.

But if you are young, it will better to invest directly than through insurance companies.

 

[boredboiboi]

What's this concept of sub funds and direct main funds?

Dont understand your qn. Its not a concept.

 

[sohguanh]

What's this concept of sub funds and direct main funds?

Sub-fund means take your monies and put into a mother fund. Mother fund is doing the investment aka ground work. Most ppl then say sub-fund just delegate and earn fees so feel not worth to give them earn for doing so little. If want go for mother fund. But sometimes there are no public retail to let you go into mother fund direct so no choice. E.g long time ago hard to go into China A Shares can only go indirectly via funds. This restriction was later lifted.

 

[mynickname]

Sub-fund means take your monies and put into a mother fund. Mother fund is doing the investment aka ground work. Most ppl then say sub-fund just delegate and earn fees so feel not worth to give them earn for doing so little. If want go for mother fund. But sometimes there are no public retail to let you go into mother fund direct so no choice. E.g long time ago hard to go into China A Shares can only go indirectly via funds. This restriction was later lifted.

So it's an issue with an additional round of fees?

 

[sohguanh]

So it's an issue with an additional round of fees?

Yes but as I said fees is not the only criteria. I give e.g sometimes you cannot invest in that market directly so need to via such sub-fund

 

[Happyhappydays]

Is this worth to buy? Lol..

If u don’t mind taking out a bit of time to invest urself directly eg etf, bonds, then the ILP is not worth it at all. Worse, u cld be making a loss via the ILP for years as NONE of the returns are guaranteed.

Just Google “ILP regrets” to see the sheer number of ppl who def won’t recommend ILPs. Those who do recommend ILPs are usually paid to do so.

 

[sinicker]

just do 6-month T-bills or 6-month fixed deposits....

 

[harky]

If u don’t mind taking out a bit of time to invest urself directly eg etf, bonds, then the ILP is not worth it at all. Worse, u cld be making a loss via the ILP for years as NONE of the returns are guaranteed.

Just Google “ILP regrets” to see the sheer number of ppl who def won’t recommend ILPs. Those who do recommend ILPs are usually paid to do so.

thx. i did think... so i had cancel my ILP and do tbill investment LOL thx

 

[blurpandasg2014]

Is this worth to buy? Lol..

GWA funds perform badly.

 

[blurpandasg2014]

No different from other ilp. And correct me if i am wrong, its still sub funds while most insurers are ald doing direct main funds.
Anyway for u to take note.
Forum is for open discussion.
no pm request is actually allowed

GE uses sub funds (of common direct funds) and adds additional 0.1% fee to it.