ILP Funds

[es0teric]

Hi, anyone know about ILP fund? Previously sign up with manulife and one lady told me that ILP fund are actually not worth to take up because something like after 10 years you will start losing the interest and advise me check with Manulife what are the current "money" I am able to withdraw if I stop now.

Can anyone advise me what should I do to breakeven?

 

[Epps_Sg]

Can't really advise you since dont know your situation well. I can only put forth my opinions for education purpose. If yours is a single premium ILP, then you are buying the ILP for DIY Investing. Since you are DIY investing, you need to have an investment strategy to break even.

A possible investment strategy will be build your own diversified portfolio, this includes investing into single 'balanced fund' that includes stocks and bonds and 'hope' you picked the right country/region and there is no recession next year and so forth.

Alternatively, you can invest into simple portfolio of stock fund and bond fund in the fixed ratio of 50/50 for example, and passively manage your own portfolio. Passive because you touch 'manage' your portfolio once every year, at which time you can buy/sell bond/stock fund to reset the asset allocation back to 50/50. This type of diversified portfolio has lower potential loss but lower yearly returns as well. Advantage is no market timing involved here. Disadvantage is yo ucan take really long time to break even.

Another strategy is market timing, means picking stock funds that you think will outperform well next year. However i believe many if not most average investor cannot succeed at market timing so you should avoid this, because potential returns is much higher, potential risk is much higher also. You wont be asking for this advice here if you were a successful market timer.

An idea is that you continue to invest using ILP fund, research and build a bond/stock diversified portfolio and see the results in near future. Eventually, as a DIY investor you have the freedom to switch to investing using ETF yourself in future. ILP funds typically have higher yearly management fees or 1~2% which can drag on returns significantly if you are investing for the long run.

Before you start on any investing strategy, you need to learn your preferred investing strategy well and do your due diligence about the pros and cons, so that you wont do the wrong thing for your portfolio. Good luck.

 

[SpinFire]

ILP as in investment-linked + insurance? Yeah it's a policy I'd avoid due to the high charges. My parents have an ILP in place for 10 years, and it's still underwater mainly due to the commissions paid to the insurance salesman when he first bought it. The commissions were really high.

You should check with your financial advisor about the current surrender value, and calculate how much you'd lose upon termination. You can also try to decipher the policy statement, it'll state the surrender value and the amount of premiums you have paid.

Remember to have an existing term insurance or life insurance before terminating the ILP in case god forbids, something happens before you get a new policy.

 

[matchy]

Hi, anyone know about ILP fund? Previously sign up with manulife and one lady told me that ILP fund are actually not worth to take up because something like after 10 years you will start losing the interest and advise me check with Manulife what are the current "money" I am able to withdraw if I stop now.

Can anyone advise me what should I do to breakeven?

got ppl show u proof anot??

dun hearsay hearsay

 

[bbmars1128]

got ppl show u proof anot??

dun hearsay hearsay

No need to prove, very much depends on when you buy. I sold mine after 7-8 yrs (3 funds, loosing $16K), its already 13+ yrs now, has yet to reached the fund previous high. Bought it 1 year before recession.

I know of someone else in the same situation too and loosing $$$ but refused to withdraw. Some people are making but those who enter before the recession or when it just started, likely to be in the RED....... Like my colleagues

 

[sck013]

Hi, anyone know about ILP fund? Previously sign up with manulife and one lady told me that ILP fund are actually not worth to take up because something like after 10 years you will start losing the interest and advise me check with Manulife what are the current "money" I am able to withdraw if I stop now.

Can anyone advise me what should I do to breakeven?

Whether it is worth depends on a few factors:
1. How old were you when you took it up? (younger person will be more beneficial as the insurance charges are lower) not advisable for older person to take up
2. Does the agent helps you to re-allocate your funds as and when is needed (sad to say, not many agents are doing this or have the know-how)
3. ILP should not be seen as an investment tool, there are better investment that helps you to generate return (I have an ILP myself but I see it as more of insurance rather than investment). So if you earlier intention is to have an investment plan to generate returns, ILP is not the one

 

[Saj.Mahal]

Hi, anyone know about ILP fund? Previously sign up with manulife and one lady told me that ILP fund are actually not worth to take up because something like after 10 years you will start losing the interest and advise me check with Manulife what are the current "money" I am able to withdraw if I stop now.

Can anyone advise me what should I do to breakeven?

ILP no interest in the first place, can't 'lose' any interest. But got charges.

Go find out what you bought or tell us what the name of the plan is. When did you start it? How old are you now?

Not all ILP charges increase with age. More than 1 company has level charges and limited payment one.

Also ask yourself why you buy an ILP in the first place. You wanted insurance or you wanted investment? Then ask yourself what you want now.

Who is this lady you met, and what is her motivations for telling you what she did?

You want to breakeven, but what are you comfortable with? What risk are you able to take on? Are you okay with losing more money for a chance to breakeven? Or is what you have now very important that you cannot afford to lose nay more? Do you need the money? When do you want to use the money?

The way you ask your question and the info you give us, you arn't gonna get much useful replies.

 

[kopikid]

First question is how old are you? and are you a smoker??

Which Funds did you choose and how many % in each funds?

When did you buy??

ILP takes 10 years to break even u can see it at your own policy if you want to know more

do pm me

 

[lousylah]

Hi, anyone know about ILP fund? Previously sign up with manulife and one lady told me that ILP fund are actually not worth to take up because something like after 10 years you will start losing the interest and advise me check with Manulife what are the current "money" I am able to withdraw if I stop now.

Can anyone advise me what should I do to breakeven?

forget about breaking even. my suggestion is to stop-loss and free up the capital for other purposes.

ILP as an investment is like going to the casino and giving half your bets/winnings to the banker/dealer in the first 5 rounds. odds to win money is impossible. you spend the next 10-15 rounds just breaking even.

as I have mentioned on other threads. the same amount of "investment" put into a 1-year FD and rolled over 10x gives better returns than any ILP.

just take the money lost as a lesson learnt.

 

[bloodsucker]

Hi, anyone know about ILP fund? Previously sign up with manulife and one lady told me that ILP fund are actually not worth to take up because something like after 10 years you will start losing the interest and advise me check with Manulife what are the current "money" I am able to withdraw if I stop now.

Can anyone advise me what should I do to breakeven?

Depending on when you bought the policy, you may get back ZERO now. But still, do check with the company. In fact, they should have sent u recently a letter (its regulation to do so annually) regarding your funds.

You have a front-end loaded policy, so I would guess that now it is impossible for you to have broken-even yet. And chances are if u bought during 2007 or 2008, that your account is damn pitiful now. Don't listen to what people say about switching funds to higher-risk equities.

I agree with lousylah, to just take the loss. If you are familiar with the concept of opportunity cost, you are actually losing far more than what you lose on paper. And I dno how to help you if you are still in the ILP.

 

[PruCorgi]

Basically, you need to provide more info about the ILP you bought before we can give you proper advice... there are different types of ILPs too. Also share what is your main purpose buying it... investment, protection (what type of protection--death/disability/critical illness?), a bit of both, support friend/family, "actually, I dunno", etc.? Info such as what is the amount you're paying for the ILP, your age, other types of existing insurance, and if you have any health conditions would help too.

But generally speaking, if you bought a typical RP ILP (regular premium ILP) for investment purposes, then you should do as bloodsucker and lousylah recommend. That type of ILP is more for protection, not investment.

If you bought this RP ILP for protection, then it's not so clear-cut. Best to check with an adviser. Expectation shouldn't be to breakeven in 10 years' time... it's too short to begin with and anyway it's investment-linked, so when and if it breaks even is not guaranteed. Breaking even/profiting should be taken as a bonus since the main purpose is to protect/insure (unless you reduce the coverage). However, this type of RP ILP can act as a secondary source of funds so long as you maintain a minimum balance/cash value to keep the protection active.

 

[matchy]

No need to prove, very much depends on when you buy. I sold mine after 7-8 yrs (3 funds, loosing $16K), its already 13+ yrs now, has yet to reached the fund previous high. Bought it 1 year before recession.

I know of someone else in the same situation too and loosing $$$ but refused to withdraw. Some people are making but those who enter before the recession or when it just started, likely to be in the RED....... Like my colleagues

if ur agent got do his job, he wld have told u that anyone who sold his policy 7-8 years confirm guaranteed chop lose money....it is not rocket science...it is logic...

ur policy minimumly need at least 10 years to break even and 15 years to make money....

 

[jamesco]

quick question, did anyone here actually kept till 15 years and earn from it? im like 4 years in my ILP plan and i just recently just read on ILP, so demoralizing... and to make things worst my family members just bought a new ILP zzzzzz i can only blame myself for not finding out and reading more...

 

[chopra]

another ilp sucker. ....

 

[kuro]

ILP is a whole life plan, like any traditional whole life plan, but with the flexibility.

ILP need at least 10years to break even, then you will see the returns after that.

If you look at your traditional plan BI, you will need at least 20 years to breakeven. And the surrender value is less than premium paid at 4th year too.

 

[bbmars1128]

if ur agent got do his job, he wld have told u that anyone who sold his policy 7-8 years confirm guaranteed chop lose money....it is not rocket science...it is logic...

ur policy minimumly need at least 10 years to break even and 15 years to make money....

Hello, I had mentioned that is has already been 13+ yr to date and still in the red. You think it will breakeven by yr 15? We are already pass the 1st BULL cycle which was the initial recovery cycle which surges very strongly especiall during the 1st round of the bull cycle. Some of the funds are trading sideway and making little gain for the entire yr. It is still in the RED. So I bet because by then, the current bull cycle will soon come to another end and the bear will take over... breakeven by then? Some funds never recovered... By the way, I had already recovered all my LOST and still making $$. Stop dreaming.. Not all funds work out that way.

My friend, I had a new agent who service me 5 yrs ago told me one of the ILP that I had, her husband also own it. She even advised her hubby to sell it away as it was not making it to the target at all.... it belongs to some old investment plan... and the funds it self given my buying price, not worth anything despite market has turned up

 

[jamesco]

what can i do to make the most out of my ILP plans? how can i monitor the funds issit earning or not so i can change funds?

 

[chopra]

if ur agent got do his job, he wld have told u that anyone who sold his policy 7-8 years confirm guaranteed chop lose money....it is not rocket science...it is logic...

ur policy minimumly need at least 10 years to break even and 15 years to make money....

wrong. I managed to cash out for my parents within one year with profit.

buy unit trust need 10years to breakeven???

 

[chopra]

what can i do to make the most out of my ILP plans? how can i monitor the funds issit earning or not so i can change funds?

I bet your agent don't tell you the HUGE SPREAD involved. Compare it with stocks and you would see how CARROT ilp can be.


For instance, the bid/sell for Greatlink Asean Growth is S$ 2.563/S$ 2.697. Compare it with a stock, say Singtel $2.31/$2.32. Look at how much fund manager and insurance agents are sucking the commission! Holy...

 

[Saj.Mahal]

what can i do to make the most out of my ILP plans? how can i monitor the funds issit earning or not so i can change funds?

Some insurance companies have an online login portal that allows you to see a summary of what UT's you are holding and their values. Also, you can do free fund switching there. Can be done by yourself.

Others do not, but you can check the performance of each fund online. Then, ask your agent to help you make changes if you want.

I believe most insurance companies in Singapore effectively charge a 3% sales charge. Either way, switching should be free of charge.

So for example, Client A may feel that bonds have had a good run in 2012 and like to switch them over to equities. He logs on to his online portal and makes the fund switches. He also redirects all future premiums away from bond funds as he is bullish.