ILP Plans

[MoDiE]

Was introduced by a friend to buy this Mum's Advantage Plus plan from AXA to cover my wife and baby whom is currently still in the womb, due in Nov. $600+ one off payment, coverage for 6 years, which I feel is quite ok.

Downside is, its compulsory to buy the FlexiProector / FlexiSaver plan with this Mum's Advantage plan. The agent explained that this was an investment link plan, but I was pretty skeptical about it. However, as me and wife wanted coverage for the baby when its born, we decided to buy it and the investment amount was $200/month.

After speaking with a few colleagues, ALL of them asked me to steer clear of ILPs coz of the low returns and long break even period. I am a pretty noob in insurance and investments, so can anyone give me some advice? I tried reading up on ILPs but have no clue on all the technical jargon blah blah as I am not a finance person.

Should I decrease the invest to the minimum $100/month and cancel the ILP after the baby is born and go for a savings / life plan for the baby. I know I will lose some money but that's ok.

Or should I totally not buy this Mum's advantage plan from AXA? What other plans cover for the baby from any birth complications or congenital diseases?

 

[PRUbombz]

First of all, you should not see an investment-linked life policy as purely an investment plan. The key advantage of an ilp is to low cost of insurance when the insured is young. To secure your kid with a guaranteed insurability, can consider to get the policy with monthly premium $100. Guaranteed insurability means, ie kid born with a hole in a heart, if wants to buy a life policy then, insurance company will probably reject or have premium loading. If you bought a pregnancy plan like axa or with prudential prufirstgift, your child will be allowed to buy the ilp with death and critical illness coverage like normal. IMO, ilp is meant to buy young and keep very long term, perhaps till your kid wants to retire, then surrender the policy.

The other budgeted $100, u can consider to invest yourself or do an endowment which gives you some guarantee in your cash value for your child education funds.

 

[Darkzi0n]

If u r noob in investment n dont wan or dont have time to learn about it, den low return is better than no return. But be aware that those projected benefits are just for illustration purpose, u sld not expect it to be indicative of the actual return

 

[missangsty]

Was introduced by a friend to buy this Mum's Advantage Plus plan from AXA to cover my wife and baby whom is currently still in the womb, due in Nov. $600+ one off payment, coverage for 6 years, which I feel is quite ok.

Downside is, its compulsory to buy the FlexiProector / FlexiSaver plan with this Mum's Advantage plan. The agent explained that this was an investment link plan, but I was pretty skeptical about it. However, as me and wife wanted coverage for the baby when its born, we decided to buy it and the investment amount was $200/month.

After speaking with a few colleagues, ALL of them asked me to steer clear of ILPs coz of the low returns and long break even period. I am a pretty noob in insurance and investments, so can anyone give me some advice? I tried reading up on ILPs but have no clue on all the technical jargon blah blah as I am not a finance person.

Should I decrease the invest to the minimum $100/month and cancel the ILP after the baby is born and go for a savings / life plan for the baby. I know I will lose some money but that's ok.

Or should I totally not buy this Mum's advantage plan from AXA? What other plans cover for the baby from any birth complications or congenital diseases?

AXA flexiprotector min 100/month. why not? i feel that mum's advantage is a good plan. despite having to buy it with flexiprotector, i'd take it as still getting a bit of my money back while protecting myself and my loved ones. my family does not need my income to survive should i pass away someday, i take it as leaving behind a token amount.

sure, you can invest yourself and buy term plans to save cost and maybe get higher profits from investment. but nothing is guaranteed.