ILP. Fight or flight?

[MrCoconut]

Been paying an ILP for 8 years now. Direct question. Fight or flight?

 

[Shion]

break even already ?

 

[boredboiboi]

8 years i suppose its front end load(high charges upfront with no lock down). If u wan to fight, u can stop paying premium and reduce the coverage(provided you got adequate coverage).

 

[Shiny Things]

Been paying an ILP for 8 years now. Direct question. Fight or flight?

Flight. Even after you “break even” (which is such a ripoff - if you’d just bought stocks or ETFs you’d have broken even the day you started!), you’ll still be paying exorbitant, above-market fees for the rest of the life of the policy.

 

[MrCoconut]

break even already ?

8 years won't break even lolx

 

[MrCoconut]

8 years i suppose its front end load(high charges upfront with no lock down). If u wan to fight, u can stop paying premium and reduce the coverage(provided you got adequate coverage).

I've reduced premium. Can stop paying premium one?

 

[boredboiboi]

I've reduced premium. Can stop paying premium one?

Yes you can. Front end load do not have charges for stopping premium, only back end load has it.

 

[SBC]

Flight. Even after you “break even” (which is such a ripoff - if you’d just bought stocks or ETFs you’d have broken even the day you started!), you’ll still be paying exorbitant, above-market fees for the rest of the life of the policy.

Assuming I need the insurance coverage, make sense to continue such policy till maturity?
Understood that it’s return could be less than 3%.

 

[OngHuatHuat]

Nope.

Xxxxx

Assuming I need the insurance coverage, make sense to continue such policy till maturity?
Understood that it’s return could be less than 3%.

 

[MrCoconut]

Assuming I need the insurance coverage, make sense to continue such policy till maturity?
Understood that it’s return could be less than 3%.

I think you are better off getting a proper insurance for proper coverage, rather than using a ILP

 

[boredboiboi]

Assuming I need the insurance coverage, make sense to continue such policy till maturity?
Understood that it’s return could be less than 3%.

U can use it for protection before age 50 as the cost of insurance is quite cheap before that. After that will be very expensive, plus if you got condition then have to hold on also liao.

 

[SBC]

U can use it for protection before age 50 as the cost of insurance is quite cheap before that. After that will be very expensive, plus if you got condition then have to hold on also liao.

My age is less than 50. Is meant for education fund for my kids.

Sorry, TS not meant to snatch your thread.

 

[BBCWatcher]

I suppose we should thank you, the ILP holder, for making our insurance (that isn’t an ILP) more affordable.

There’s one situation I can imagine when an ILP might make some sense: if the only way you’ll save anything (or enough) is when an insurance company sends you a premium bill that you feel obliged to pay. Some people simply won’t save, or save enough, unless somebody sends them a bill, preferably paid automatically via GIRO so they don’t veto their sole savings vehicle. True, the costs might be astronomical and the net yields lousy, but even a high cost ILP could be better than more “prostitutes and cocaine.” (Metaphorically, hopefully.)

 

[boredboiboi]

My age is less than 50. Is meant for education fund for my kids.

Sorry, TS not meant to snatch your thread.

If to fund for kids, might not be suitable as when the amount u need and at a crisis period, the fund went down, no 1 will actually withdraw from it.

 

[SBC]

If to fund for kids, might not be suitable as when the amount u need and at a crisis period, the fund went down, no 1 will actually withdraw from it.

Already half-way through for my 15-year old plan.

 

[boredboiboi]

Already half-way through for my 15-year old plan.

Which ilp is that? 15 years, nv really heard of.

 

[MrCoconut]

Already half-way through for my 15-year old plan.

Break even already?

 

[Value.Matrix]

Break even already?

The only way is to understand the fees you pay.

Scenario 1: you go premium holiday and let the plan roll by itself. You invest the rest of it direct through IB or FSM/IFast with low trading comms, into the same fund or etc if it allows.

Scenario 2: you continue to invest with the ILP.

Early termination always have surrender charges/penalty etc etc. So do an excel spreadsheet or something to understand it.

It's going to be a tedious process. But at least you do it once to know what's your next step. Instead of getting advice (or non-advice) on how to move forward.

 

[SBC]

Which ilp is that? 15 years, nv really heard of.

Sorry, see wrongly. Mine is 15-year saving plan.

I had terminated an ILP few year back.